LME Takes Aim at Traders’ Russian Metal Games With New Rules

The London Metal Exchange is imposing new rules surrounding the movement of metal in its warehousing network, taking aim at a lucrative and complex trading opportunity that emerged after the imposition of sanctions on Russian metal earlier this month.

The measures announced on Tuesday are designed to undercut the economic rationale for withdrawing Russian metal that’s already on the LME and selling it back on the exchange under a new, less-desirable category.

It’s a trade that has captivated the metals world since the sanctions were unveiled, with Bloomberg reporting last week that Glencore Plc and Trafigura Group were ordering large ...