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London Metal Exchange eyes expanding access to Rusal's metal after US sanctions

The London Metal Exchangeis working with "all the parties involved" to see if it could expand access to United Co. Rusal PLC aluminum, but the exchange needs to be cautious, Reuters reported June 5, citing LME CEO Matthew Chamberlain.

The exchange suspended Rusal-produced metal in the wake of the U.S. sanctions on Russian entities announced April 6.

Chamberlain said the LME did not want its members to inadvertently end up with metal that would cause problems with U.S. authorities.

The U.S. Treasury Department recently extended the deadline for investors to divest stakes in sanctioned Russian companies, including En+ Group PLC and Rusal, to Oct. 23 from June 5.

"There have been a number of exemptions granted by the (U.S.) administration and that could open the way for a more permissive regime on metal being brought in," Chamberlain said.

The Treasury's extension is part of General Licence 14, which means aluminum made and sold by Rusal until Oct. 23 would be excluded from U.S. sanctions, provided the purchase deal was signed before the sanctions were imposed.

Glencore PLC and Rusal had asked the LME to lift its suspension on the Russian company's aluminum after the U.S. extensions, but the exchange declined.