LME Faces Fresh Worries About Russian Metal After UK Sanctions

New UK sanctions on Russian metals have caused confusion among traders and raised fresh worries that the London Metal Exchange could be overwhelmed by a glut of unwanted Russian aluminum.

The sanctions, published by the British government Thursday with little fanfare, prohibit British individuals and entities from trading physical Russian metals, including aluminum, copper and nickel.

“These regulations could have far-reaching implications for any UK persons who are importing, acquiring, supplying or delivering a wide range of base and other metals from Russia,” said Tom Hine, partner at Kemp IT Law and former general counsel of the LME. “Anyone involved ...