LME sets conditions on new metal deliveries from Russia's UMMC

Oct 6 (Reuters) - The London Metal Exchange (LME) has restricted new copper and zinc deliveries from Russia’s Ural Mining & Metallurgical Co (UMMC) and a subsidiary following Britain’s sanctioning of its controlling shareholder, Iskander Makhmudov.

The British government last month announced a new package of sanctions linked to what it described as Russia’s “sham” referendums in four regions of eastern Ukraine.

Russian President Vladimir Putin signed a law to incorporate the four partially occupied regions into Russia on Wednesday. Kyiv called the act a “collective madhouse” at a time when Russia’s forces have been fleeing from front lines.

Britain, along with Western allies, has imposed travel bans, asset freezes and other sanctions on hundreds of Russian individuals and entities since the invasion of Ukraine by Russian forces in February.

Makhmudov was added to Britian’s sanctions list last month along with three other oligarchs.

The LME, citing publicly available information, said in a notice to members, warehouse companies and its London agents that Makhmudov was president of UMMC and that UMMC had a 97.78% shareholding in Chelyabinsk.

The LME said metals from copper producer UMMC and its subsidiary, Chelyabinsk Zinc, could only be delivered to LME warehouses if the owner could prove to the exchange that it did not constitute a breach of sanctions.

The restrictions shall continue until further notice, the LME said in a Wednesday notice posted on its website.

The LME said UMMC copper listed in LME warehouses was not subject to sanctions, and there was no zinc produced by Chelyabinsk in LME warehouses at the date of the notice.

UMMC’s press office did not immediately respond to a request for comment.

Three-month LME copper rose as much as 2.3% to $7,858 a tonne on Thursday, its strongest since Sept. 19. Zinc climbed by up to 4.9% to $3,193 a tonne, its highest since Sept. 20. (Reporting by Enrico Dela Cruz in Manila; Editing by Robert Birsel)