New European Union sanctions on the former head of giant Russian zinc and copper firm UMMC do not extend to the company itself, the London Metal Exchange (LME) said on Friday.
The EU this week added Andrei Kozitsyn, former head of Urals Mining and Metals Co, to its list of individuals and companies banned for supporting Moscow’s invasion of Ukraine.
UMMC produces two LME-approved copper brands that are deliverable on the exchange.
“The LME understands that the sanctions do not extend to UMMC itself because Mr Kozitsyn does not own or control UMMC for the purpose of the EU sanctions,” the exchange said in a statement.
Although the LME referred to Kozitsyn as the head of UMMC, a press release dated July 19 on UMMC’s website said that Kozitsyn has stepped down as chief executive and was replaced by the company’s Chairman Elfat Ismagilov.
“This decision was made because of the possible imposition of personal sanctions by foreign states in the future,” said UMMC, which also produces coal, gold and silver.
The LME also said that it was continuing to examine sanctions that Britain imposed on Vladimir Potanin, chief executive of Nornickel.
Nornickel is the world’s largest refined nickel producer.
The exchange, the world’s oldest and largest market for industrial metals, said on June 30 that it was looking at what the Potanin sanctions may mean for the LME and Norilsk brands.
“This process is ongoing and we will update the market once we gain further clarity,” the LME said on Friday.
The LME is owned by Hong Kong Exchanges and Clearing Ltd.
(By Eric Onstad; Editing by Frances Kerry)