MINEX Forum

Tag: Ukraine war

  • EU Weighs Ban on Russian Platinum Group Metals and Copper in New Sanctions Package

    EU Weighs Ban on Russian Platinum Group Metals and Copper in New Sanctions Package

    The European Union is considering expanding its sanctions regime against Russia to include a ban on imports of several platinum group metals and copper, as Brussels looks to tighten economic pressure over Moscow’s war in Ukraine.

    According to sources familiar with the discussions, the proposed measures could cover iridium, rhodium, platinum and copper. The initiative is still under negotiation and would require unanimous approval from all EU member states. The bloc is aiming to finalize the new sanctions package later this month. The European Commission, which coordinates sanctions policy, declined to comment.

    The potential ban comes at a time of already strained global metals markets. Copper prices have reached record levels this year, driven by strong demand and limited mine supply, while platinum is also expected to remain in deficit. Western trading hubs have been progressively distancing themselves from Russian-origin metals. The UK has barred Russian copper produced after April 13, 2024 from trading or delivery on the London Metal Exchange, and Russian refiners were removed from the London Platinum and Palladium Market’s approved delivery list in 2022.

    These restrictions have reduced demand for Russian metals among Western industrial consumers, particularly because sanctioned material can no longer be used for financing purposes. In the copper market, many European buyers have effectively exited Russian supply altogether, especially as several major Russian producers have come under sanctions. Nevertheless, Russian metals continue to find their way into global markets, with much of the volume redirected to Asia.

    If implemented, the new EU measures would primarily affect MMC Norilsk Nickel, Russia’s largest mining group and a key supplier to global industry. The company accounts for roughly 40% of global palladium used in automotive catalysts, a metal not included in the current proposal. Norilsk Nickel is also Russia’s largest producer of platinum, iridium, rhodium, nickel and copper, and has so far avoided direct EU sanctions because of its systemic importance to global supply chains.

    Separately, the EU is also reviewing options to replace its existing price cap on Russian oil with a ban on maritime services, according to earlier reports.

  • Ukraine and U.S. Seal Controversial Minerals Deal After Tense Talks

    Ukraine and U.S. Seal Controversial Minerals Deal After Tense Talks

    Ukraine and the United States signed a landmark minerals and profit-sharing agreement on April 30 in Washington, marking the end of months of turbulent negotiations and the beginning of a new phase of economic cooperation focused on reconstruction.

    The agreement gives the U.S. preferential access to future Ukrainian mineral deals and establishes a joint investment fund for rebuilding Ukraine’s war-torn infrastructure. It also secures Ukraine’s full sovereignty over its natural resources, following President Volodymyr Zelensky’s refusal to sign earlier versions that would have required Ukraine to repay past military aid or relinquish control of key assets.

    “This is a win for Ukraine,” said Prime Minister Denys Shmyhal. “We will attract major investments, secure growth, and remain in control of our critical minerals.”

    The U.S. had previously pushed for terms granting it up to 50% of Ukraine’s revenues from rare earths, oil, and gas, and even a stake in infrastructure like ports. President Donald Trump reportedly demanded repayment of $300 billion in aid and up to $500 billion in future mineral revenue — conditions Kyiv firmly rejected.

    Only after Zelensky sent Trump a letter expressing willingness to negotiate and praising U.S. support did tensions ease. “Nobody wants peace more than the Ukrainians,” Trump quoted Zelensky as writing, using the letter to bolster support for the deal during a speech to Congress.

    The final agreement establishes a joint fund where both nations will equally manage proceeds from newly issued licenses for critical minerals. For the first ten years, profits will be reinvested into Ukraine’s infrastructure and economic development. Past revenues and aid are excluded, and there are no debt obligations.

    Ukraine’s mineral wealth includes Europe’s largest lithium deposits, 20% of global graphite resources, and significant reserves of rare earth elements vital to defense and green technologies. But much of this wealth lies in or near Russian-occupied territories, making future exploitation a complex and risky endeavor.

    Despite securing equal partnership terms and full resource control, the deal offers no U.S. security guarantees. Critics say the agreement may remain symbolic if the war drags on.

    Still, U.S. Treasury Secretary Scott Bessent called the agreement a signal to Russia of Washington’s enduring support for a “free, sovereign, and prosperous Ukraine.”

  • US Treasury Secretary to Visit Ukraine Amid Resource and Security Discussions

    US Treasury Secretary to Visit Ukraine Amid Resource and Security Discussions

    US Treasury Secretary Scott Bessent will travel to Ukraine this week, marking the first cabinet-level visit from former President Donald Trump’s administration to the war-torn country. The visit aims to negotiate US access to Ukraine’s rare earth minerals, energy resources, and key state-owned enterprises as part of a broader effort to end the Russia-Ukraine war and strengthen American resource security.

    According to an anonymous source, discussions will cover the possibility of a resource-sharing pact, under which the US would gain access to Ukrainian rare earths in exchange for ongoing support against Russian aggression. Trump and Ukrainian President Volodymyr Zelenskiy have expressed mutual interest in such an arrangement.

    US National Security Adviser Mike Waltz further emphasized on Sunday that the US aims to recoup its war-related expenditures by partnering with Ukraine on energy and natural resource projects, including oil and gas.

    A high-profile US delegation, including Secretary of State Marco Rubio, Vice President JD Vance, Defense Secretary Pete Hegseth, and Special Envoy for Ukraine Keith Kellogg, will also hold talks with European allies and Ukrainian officials this week.

    The Trump administration is reportedly pressuring European nations to purchase more American weapons for Ukraine, a move aimed at strengthening Kyiv’s defenses ahead of potential peace negotiations with Moscow.

  • Conflict in Ukraine Drives Surge in Copper Demand

    Conflict in Ukraine Drives Surge in Copper Demand

    The ongoing conflict in Ukraine has led to a significant increase in demand for copper, according to sources cited by Fastmarkets. Copper is a critical component in munitions, with bullet cartridge casings made from brass, an alloy of copper and zinc.

    In the latest development of the conflict, which has persisted since 2022, a series of Russian missile strikes targeted cities across Ukraine on Monday, including a children’s hospital in Kyiv, resulting in at least 22 deaths and 68 injuries.

    “Every day, the war consumes many tonnes of copper. At the end of the war, there will be a new mine in Ukraine with all that copper scrap,” a producer told Fastmarkets, noting the increasing demand for brass.

    A NATO 155-millimeter artillery shell contains 0.5 kg of copper, with Ukrainian forces reportedly firing up to 7,000 such shells daily, according to the European Defence Agency (EDA). The Royal United Services Institute (RUSI), a UK defense think tank, stated that Russia’s equivalent is the 152 mm shell, with Russia producing 4.5 million shells annually—a 150% increase in output over the past year, as noted by consultancy Bain & Company.

    Bloomberg estimates that before the war, the US produced an average of 14,400 shells per month. However, DefenceOne, a specialist defense industry publication, reported that the country aims to ramp up production to 100,000 monthly shells by the end of 2025.

    “War is good for the metals business,” said Fastmarkets analyst Andy Farida, suggesting that the ongoing conflict in Ukraine is partly responsible for the resilience of copper prices compared to other base metals.

    The military’s demand for copper has garnered significant attention in recent years. Mining magnate Robert Friedland recently told Bloomberg that despite China’s weak real estate market, military demand in the country remains high. “Europe is rearming; Japan is rearming. The United States military is worried about a shortage of 155 mm howitzer shells. Where do you think the world’s army is made out of when all the shooting goes on?” Friedland commented. “If someone is pointing a gun at you, you need that copper to shoot back.”