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Glencore
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Glencore

Multinational commodity trader; unwound Rusal positions in 2018, illustrating how sanctions transmit through trading books.

Last refreshed: 21 May 2026 · Appears in 1 active topic

Key Question

How quickly did Glencore cut Rusal exposure in 2018, and will traders do the same with Hengli?

Timeline for Glencore

#10425 May

Three days to the Hengli cliff

Iran Conflict 2026
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Common Questions
Why did Glencore cut its Rusal exposure so quickly in 2018?
Glencore's dollar-denominated trades route through US correspondent banks. Once Rusal was OFAC-designated, clearing any Rusal-linked dollar transaction exposed Glencore's correspondent banks to secondary sanctions. Exit before wind-down expiry was the fastest way to eliminate that exposure.Source: OFAC / Bloomberg
What is Glencore's role in the Hengli sanctions story?
Glencore is not directly involved in the Hengli sanctions. It is referenced as a precedent actor: its rapid unwinding of Rusal positions in 2018 is the clearest evidence of how dollar-clearing sanctions transmit through commodity trading books before formal enforcement begins.Source: OFAC
How does Glencore's 2018 Rusal exit relate to the 2026 Hengli sanctions pressure?
Glencore's rapid exit from its Rusal aluminium offtake agreement after the 2018 OFAC designation is the closest Western precedent to what Hengli Petroleum now faces over Iranian crude. Both cases involve a large commodity trader or refiner weighing the cost of secondary sanctions against an established supply relationship.Source: Lowdown iran-conflict-2026 Update 21 May 2026

Background

Glencore is a multinational commodity trading and mining company headquartered in Baar, Switzerland, and listed on the London Stock Exchange. In April 2018, it was among the major commodity trading firms that unwound positions with Russian aluminium producer Rusal within days of OFAC's designation, before the formal wind-down period closed. Its rapid position unwinding was cited as evidence that dollar-clearing risk transmits through trading books faster than through physical trade flows .

Glencore's 2018 response is directly relevant to understanding the likely behaviour of commodity traders exposed to Hengli Petrochemical following General Licence V's 24 May 2026 expiry. As a dollar-funded trader operating through correspondent banking networks, Glencore faces the same structural pressure in any secondary-sanctions scenario: the correspondent banking risk lands before the physical delivery obligation, meaning position unwinding precedes any formal enforcement action.

Glencore is one of the world's largest commodity trading houses by revenue, active in oil, metals, and agricultural products. It was itself subject to a separate US Department of Justice investigation into corruption and market manipulation, resolved through deferred prosecution agreements in 2022. The company is not currently designated by OFAC and has no direct involvement in the Hengli or Iran sanctions programme; its significance to the Lowdown coverage is as a precedent actor in the Rusal analogy.

Source Material
Glencore official website