SPIMEX Seeks to Trade Rusal’s Low-Carbon Aluminum Amid Western Bans

The St. Petersburg International Mercantile Exchange (SPIMEX) has proposed initiating exchange trading of Rusal's low-carbon aluminum brand, Allow. According to a report by Kommersant, SPIMEX has submitted a request to the Russian government to facilitate this initiative. Currently, pricing regulation for aluminum is linked to the London Metal Exchange (LME), where prices are calculated based on a formula established by the Federal Antimonopoly Service (FAS) in 2006.

SPIMEX aims to amend the FAS prescription to incorporate Rusal's aluminum into Russian trading platforms. The exchange highlights the aluminum's high quality, meeting international standards, and its significant export volumes to China. SPIMEX has already standardized the characteristics of "green" aluminum and developed the necessary infrastructure for its trading.

This move comes in response to recent bans by the US and UK, effective from April 2024, prohibiting the import of aluminum, copper, and nickel from Russia. Additionally, trading metals of Russian origin has been banned on the LME and the Chicago Mercantile Exchange (CME).