London blocks sale of new platinum and palladium from Russian refineries

LONDON: The London Platinum and Palladium Market (LPPM) has said it will block Russian refineries from selling the two metals in the London market, the world’s largest, due to the situation in Ukraine, adding to a growing list of measures against Russian interests.

Russia produces around 10% of the world’s platinum supply and between 25% and 30% of its palladium. Prices rose, with platinum up 1% and palladium up 8% by 1250 GMT.

The two metals are chiefly used by auto makers, who embed them in vehicle exhausts to reduce harmful emissions. Platinum is also used in other industries, in jewellery, and for investment.

The LPPM said in a statement on Friday its management committee had reviewed its list of accredited “good delivery” refiners due to the events taking place in Ukraine.

It said would suspend with immediate effect both Russian refiners it accredits, JSC Krastsvetmet and the Prioksky Plant of Non-Ferrous Metals.

The decision means platinum and palladium produced by these refiners after April 8 is barred from trading in London. Products they made before losing their accreditation remain eligible to trade, the LPPM said.

The London Bullion Market Association (LBMA), a trade group similar to the LPPM, suspended Russian gold refineries from its good delivery lists in early March, effectively blocking new Russian gold and silver from trading.