On April 12, 2024, the Office of Foreign Assets Control (OFAC) signed a new determination under section 1(a)(i)(A) of Executive Order 14068 of March 11, 2022 as amended by Executive Order 14114 of December 22, 2023. According to this determination, the importation and entry into the United States, including importation for admission into a foreign trade zone located in the United States, of aluminum, copper, and nickel of Russian Federation origin is prohibited, except to the extent provided by law, or unless licensed or otherwise authorized by OFAC. However, this prohibition does not apply to aluminum, copper, and nickel that was produced in the Russian Federation before April 13, 2024.
On that same day, OFAC signed another determination under section 1(a)(ii) of Executive Order 14071, dated April 6, 2022, which imposes prohibitions on certain services related to the acquisition of aluminum, copper, or nickel of Russian Federation origin. Specifically, the determination targets warranting services for aluminum, copper, or nickel of Russian Federation origin on a global metal exchange and services to acquire aluminum, copper, or nickel of Russian Federation origin as part of physical settlement of a derivative contract (collectively, “Covered Metals Acquisition Services”). According to this determination, the following activities are prohibited, except to the extent provided by law, or unless licensed or otherwise authorized by the OFAC: the exportation, reexportation, sale or supply, directly or indirectly, from the United States or by a United States person, wherever located, of any of the Covered Metals Acquisition Services to any person located in the Russian Federation. This determination excludes Covered Metals Acquisition Services related to aluminum, copper, or nickel that was produced prior to April 13, 2024.
In addition, OFAC released new FAQs (1168-1172) clarifying prohibitions and definitions relating to Russian Federation origin metals, particularly aluminum, copper, and nickel, in response to ongoing Russian aggression. Importantly, OFAC clarified that the term “Russian Federation origin” excludes “any Russian Federation origin good that has been incorporated or substantially transformed into a foreign-made product.”
These actions were taken in coordination with action taken by the United Kingdom. As stated in OFAC’s press release, “[a]s a result of today’s collective actions, metal exchanges, like the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME), will be prohibited from accepting new aluminum, copper, and nickel produced by Russia. Metal exchanges provide a central role in facilitating the trading of industrial metals around the globe. By taking joint action, the United States and UK are depriving Russia and its metals producers of an important source of revenue.”