London — US sanctions on Rusal have thrown an estimated $3bn of aluminium into limbo. Stockpiled metal produced by Rusal accounts for more than a third of the aluminium in warehouses monitored by the London Metal Exchange (LME). Though not explicitly subject to US restrictions, it is now a headache for the banks and traders who own it. That likely includes Goldman Sachs, JPMorgan Chase, Glencore, Trafigura, Castleton Commodities International and Engelhart Commodities Trading Partners, among the top aluminium traders and inventory financiers. The companies declined to comment when contacted by Bloomberg. "I don’t think there’s any doubt that it’s less valuable than other material," said Oliver Nugent, a commodities strategist at ING Bank. "Consumers are concerned. Even taking old stuff that is pre-sanctions, they’re nervous." The issue for the metals industry is how to navigate a grey area of US sanctions. There is no legal restriction on buying metal produced and sold by Rusal befo...
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