BRUSSELS(Reuters) - The European Commission intends to propose a ban on imports of Russian primary aluminium in its 16th package of sanctions against Russia over its invasion of Ukraine, European Union diplomats said on Tuesday.

EU countries hope to pass a 16th package of restrictions in February to mark the third anniversary of the war.

The Commission held informal meetings with EU countries on Tuesday to discuss details of the forthcoming package, the sources said. One source added that the ban would be phased in.

In a letter late last year, 10 EU countries proposed further sanctions on Russian trade, including its output of metals such as aluminium.

So far the 27-member bloc has banned aluminium products including wire, tubes and foil. These amount to less than 15% of EU imports of the metal used in the transport, packaging and construction industries.

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The United States and Britain banned the import of metals produced in Russia in 2024, but the EU declined to follow suit owing to opposition from some member states.

LME benchmark aluminium touched its highest in nearly a month at $2,602 a ton after the news but later gave up gains and was down 0.1% at $2,576.50 by 1715 GMT.

The EU's imports of Russian primary aluminium have fallen over the past two years. Between January and October last year, the EU imported more than 130,000 metric tons of primary aluminium from Russia, or about 6% of the 2.2 million ton total, according to information provider Trade Data Monitor.

That compares with 11% and 19% in the corresponding periods of 2023 and 2022 respectively.

EU and U.S. companies could trigger a race for alternative Middle Eastern supplies, including from the United Arab Emirates and Bahrain.

The region produced nearly 9% of global supply in 2024, the International Aluminium Institute says.