World

Russia and China trade in copper in disguise

Three sources familiar with the situation told Reuters that the Russian Copper Company (PMK) and Chinese companies have avoided taxes and Western sanctions by selling new copper ingots disguised as scrap.

Sources said the copper wire was ground by a middleman in the remote Uighur region of Xinjiang to make it difficult to distinguish from scrap. This allowed both exporters and importers to take advantage of the difference in tariffs between scrap and new metal.