UK Sanctions Rusal Founder Oleg Deripaska -- Commodities Roundup

By Will Horner

Oleg Deripaska and Roman Abramovich are among the latest Russian oligarchs to be sanctioned Thursday when the British government froze their assets and banned them from doing business in the U.K.

Mr. Deripaska is the largest shareholder of EN+ Group PLC which owns United Company Rusal, one of the world's largest aluminum companies, which Mr. Deripaska founded. While the sanctions don't target those companies or Russian aluminum exports, they have heightened fears about access to Russia's supply of metals including aluminum, nickel, and palladium.

THURSDAY'S MARKET MOVEMENTS:

--Brent crude oil rebounded 5% to $116.80 a barrel after experiencing its biggest one-day drop in nearly two years

--Aluminum prices jumped 6% to $3,498.50 a troy ounce

--Benchmark European natural gas futures fell 8% to EUR143 a megawatt hour

--Gold rises 1.1% to $2,009 a troy ounce

TOP STORY:

Roman Abramovich, Oleg Deripaska Sanctioned by UK

The British government Thursday imposed sanctions against Russian billionaire Roman Abramovich and tycoon Oleg Deripaska, as it seeks to ratchet up pressure on Kremlin-linked businesspeople.

The U.K. government said their assets would now be frozen and a travel ban imposed.

The U.K. also set a swathe of sanctions against several other high profile Russian oligarchs including Igor Sechin, the chief executive of Rosneft, Andrey Kostin, chairman of VTB bank, and Alexei Miller chief executive of Russian energy company Gazprom. These are the U.K.'s most high-profile sanctions sweep to date. Representatives for these individuals weren't immediately available to comment.

OTHER STORIES:

Evraz Suspended From Trading in London Pending Clarification of Effect of UK Sanctions

The Financial Conduct Authority said Thursday that it has temporarily suspended Evraz PLC from trading pending clarification of the effect of U.K. sanctions relating to the Russia-Ukraine conflict.

The Russian steelmaker is 29%-owned by Roman Abramovich, who on Thursday was included in the U.K. governments latest sanctions against Russian oligarchs.

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Russia, Ukraine Envoys Fail to Reach Ceasefire Deal

Russia's and Ukraine's top diplomats failed to agree on a ceasefire during a meeting in Turkey on Thursday, Ukraine's foreign minister said.

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Nickel Crisis Sends London Exchange Scrambling

The metals industry, financial regulators and Chinese officials rushed to resolve a crisis in London's nickel market, which remained on ice after an ill-fated trade sparked big price gains and billions of dollars of losses.

At the center of the action is Chinese nickel company Tsingshan Holding Group, the world's biggest producer of a metal used in stainless steel and electric-vehicle batteries. The company, sitting on $8 billion in trading losses, said Wednesday that it had secured enough metal to settle all its loss-making positions, according to a state-run media outlet.

Tsingshan couldn't be reached for comment.

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Shell Expects to Book Impairments After Russian Exit

Shell PLC said Thursday that it expects to book an undisclosed amount of impairments in its accounts this year after its exit from Russian interests with Gazprom PJSC and related entities, and the ending of its involvement in the Nord Stream 2 pipeline project.

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Asian Refiners Could Benefit From Rising Brent-Dubai Spread

Asian refiners stand to gain from the disruption of Russian oil supply, with rising price gaps among global crude oils creating an opportunity to export products at premium prices to Europe, analysts said.

MARKET TALK:

Arconic Is Pausing New Contracts in Russia

1219 GMT - Aluminum company Arconic says it is pausing new contracts in Russia, joining a raft of companies across myriad industries that have moved to end or suspend operations in the country after its invasion of Ukraine. Arconic says it will only conduct business in Russia that fulfills existing obligations in accordance with applicable laws, regulations and international rules. The Pittsburgh company also says its independently endowed Arconic Foundation is pledging $300,000 to support humanitarian relief organizations and is matching personal donations made by Arconic employees. ([e-mail])

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Gold Gains With ECB Meeting Awaited

1108 GMT - Gold edges higher ahead of the European Central Bank meeting. Comex gold futures gain 0.5% to $1,999.40 a troy ounce. While the ECB isn't expected to make any changes to its interest rates, investors will be looking for what signals it offers on when it will begin tightening its ultra-loose monetary policy. The conflict in Ukraine and the effect of rising energy bills in Europe are likely to discourage the ECB from making any changes for now. "In view of the new economic risks that have emerged of late, however, it is likely to want to keep all its options open for as long as possible and not go too far out on a limb," Commerzbank says. ([e-mail])

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Aluminum Prices Jump After UK Sanctions Russian Metals Tycoon Deripaska

1042 GMT - Aluminum prices jump after the U.K. sanctioned Oleg Deripaska, a major shareholder of a Russian metals company. Three-month aluminum prices on the London Metal Exchange rise 5.1% to $3,470 a metric ton after the U.K. said it was freezing the assets of Deripaska as well as banning his transactions with U.K. businesses and individuals. Deripaska is the largest shareholder of EN+ which owns Rusal, one of the world's largest aluminum companies, which Deripaska founded. The sanctions don't target Russian aluminum exports or producers. Metals markets have been jumpy since Moscow's invasion of Ukraine on fears that Russian exports of metals such as aluminum, nickel and palladium could be disrupted. ([e-mail])

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Oil Rebounds After Biggest Drop in Almost Two Years

0906 GMT - Oil gains after experiencing its biggest one-day drop in nearly two years. Brent is up 4.7% at $116.38 a barrel. On Wednesday, it fell more than 13% as the market considered alternative sources of supply to counter lost Russian exports. U.S. talks with Venezuela about lifting oil sanctions have weighed on prices. Before sanctions, the U.S. imported 784,000 barrels a day from Venezuela, more than the 605,000 barrels a day it has imported from Russia in recent years, SPI Asset Management says. Rapidly cutting out Russian oil is likely to keep prices volatile. "To suggest the oil market is confused would be an understatement as we are in an unprecedented situation," the firm says. ([e-mail])

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Iron-Ore Futures Fall as Worries Over Russia-Ukraine Conflict Ease

0229 GMT - Iron-ore futures are lower in early Asian trade as worries over the Russia-Ukraine conflict ease. There are talks between Russia and Ukraine in Turkey today, and Ukraine President Volodymyr Zelensky has suggested he is prepared to compromise on issues such as Ukraine's neutrality to end the war, ING says. However, with the underpinnings for this market optimism looking sketchy, none of this may last if the talks in Turkey make no progress, ING adds. The most actively traded May iron-ore contract on the Dalian Commodity Exchange is 6.9% lower at CNY777.0 a ton. ([e-mail])

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Copper Rises, Supported by Supply Shortage Concerns, Robust Demand

0212 GMT - Copper rises in the Asian morning session, supported by continued concerns over supply shortages caused by the Russia-Ukraine war and robust demand. There is strong demand in Europe and the U.S., as well as increasing demand in China due to substantial policy easing, Citi Research says. Visible stockpiles are low and buyers are unwilling or unable to purchase Russian material, Citi says, as it raises its copper-price forecast for up to three months to $12,000 a ton from $11,000 a ton previously. The three-month LME copper contract is up 0.7% at $10,070.00 a ton. ([e-mail])

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Gold Falls as Risk Appetite Rises on Hopes of Russia-Ukraine Progress

0029 GMT - Gold is lower in early Asian trading, driven by a return of risk appetite for other assets. A softening of negotiating positions in the Russia-Ukraine war has emerged. Russia says it prefers to ensure Ukraine's neutral status through talks and that Moscow isn't seeking to overthrow the Kyiv government. However, there are still uncertainties around elevated energy prices, which could add to inflation, Oanda says. It expects gold to form a $1,965/oz to $2,050/oz trading range. Spot gold falls 0.2% to $1,988.23 a troy ounce but remains up 8.7% this quarter. ([e-mail])

Write to Will Horner at [e-mail]

(END) Dow Jones Newswires

03-10-22 0759ET