After Oil, Copper Also Undergoes 'Origin Washing'... Russia Evades US Sanctions

Russia Circumvents Copper Exports via Turkey
Effectively Washing Origin
"Passing Through Third Countries Hinders Western Sanctions"

It has been revealed that Russian copper producers under sanctions from the West, including the United States, are laundering the origin of their copper through Turkey and exporting it indirectly. Analysts suggest that just as Russia hides the origin or inflates transportation costs to export oil in defiance of the West's oil price cap, it continues attempts to circumvent Western sanctions in the metals sector as well.

Vladimir Putin, President of Russia [Image source=Yonhap News]

According to major foreign media on the 3rd, Glencore, the world's largest commodity company, imported at least 5,000 tons of copper from the Russian copper company UMMC in July. The Russian copper imported by Glencore is reported to have been routed through Turkey and Italy before reaching India.

UMMC is a Russian copper producer that the United States imposed broad sanctions on in July. It is reported that Glencore purchased copper from UMMC before the U.S. sanctions took effect. However, with Turkey, which is close to Russia, acting as a transshipment hub for Russian raw materials, concerns are raised that it could function to launder the "Made in Russia" label at any time in the future. Since the Ukraine war, Turkey has not only refrained from joining Western-led sanctions against Russia but has also maintained close diplomatic relations with Russia.

Looking at the volume of copper trade between Russia and Turkey, these concerns appear to be justified. According to Swiss trade information company Trade Data Monitor, Turkey's imports of Russian copper from January to July this year increased about threefold compared to the same period last year, totaling 159,000 tons. Market research firm CRU Group also reported that Turkey's imports of copper cathode and wire rod in the first half of this year reached 330,000 tons, an increase of 125,000 tons compared to one year ago. CRU Group analyzed this as "far exceeding Turkey's domestic demand."

The copper volume that Turkey could not fully absorb is believed to have been exported to Italy. Italy is Turkey's largest copper export destination this year, with export volume growing by 3% compared to the same period last year. The Italian government explained in this regard that "the EU is experiencing problems with imports and exports routed through third countries in relation to sanctions enforcement."

One foreign media outlet stated, "Western major companies like Glencore must act cautiously considering Western sanctions to support Ukraine and European policymakers' expectations to minimize economic impacts," adding, "Trade with Russia through third countries such as Turkey, China, and the United Arab Emirates (UAE) is undermining the effectiveness of Western sanctions."

This content was produced with the assistance of AI translation services.