Glencore said it was reviewing trading operations in Russia. Credit: Glencore.

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Commodity firm Glencore said it would not make new deals in Russia, citing its military attack on Ukraine, unless directed by relevant government authorities.

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The decision follows the completion of a review of Russian business activities amid the Ukraine crisis.

Earlier this month, the company said it was reviewing its assets in Russia, including its equity stake in Russian aluminium and hydropower group En+ Group International and Rosneft.

It was also reviewing wider trading operations in the country.

The Anglo-Swiss commodity firm said there is ‘no realistic way’ to exit stakes in Russian assets, given the present environment.

In a press statement, Glencore said: “Glencore will continue to honour its legal obligations under pre-existing contracts, subject to meeting all applicable sanctions in accordance with our Sanctions Policy and where it is feasible and safe to perform these contracts.”

Glencore holds a 0.57% direct equity stake in Rosneft. The commodity firm also owns a 10.55% interest in EN+, which, in turn, has a majority stake in Russian aluminium producer Rusal.

En+ Group has an annual production capacity of 3.9 million metric tonnes (Mmt) of aluminium and employs nearly 90,000 people.

Recently, Glencore signed a deal to sell CSA copper mine in New South Wales, Australia, to Metals Acquisition (MAC), with an aim to simplify its global portfolio and prioritise lower-cost, long-life assets.

Under the agreement, Glencore will get $1.05bn in cash, a $50m equity stake in MAC, and a 1.5% net smelter return life of mine royalty.