LONDON- Aluminium rose by almost 5% on Thursday, clawing back the previous day's losses as uncertainty over supply from Russia ramps up price volatility.

Benchmark aluminium on the London Metal Exchange (LME) was up 4.7% at $3,498.50 a tonne by 1102 GMT.

Used in transport, construction and packaging, aluminium prices jumped 20% after Russia attacked Ukraine on Feb. 24, reaching a record high of $4,075.50 on Monday before slumping to $3,300 on Wednesday.

Russia supplies about 6% of the world's aluminium. It is also a significant producer of other metals as well as gas and coal used to power smelters.

Many companies have stopped handling Russian goods, creating a supply squeeze and huge price rallies across commodities.

"It is premature to already talk of a trend reversal," said Commerzbank analyst Daniel Briesemann. "In our opinion, the risks are still immense."

MARKETS/RUSSIA: Asian shares rose but a rally in European equities wilted as the conflict in Ukraine entered a third week, with none of Russia's stated objectives reached.

Foreign ministers from Russia and Ukraine met for talks in Turkey on Thursday.

The Kremlin, meanwhile, has threatened to respond to what it calls "economic" war from the West.

MINING: Rio Tinto, became the first major mining company to say it was cutting all ties with Russian businesses.

CENTRAL BANKS: Rising commodity prices are pushing up inflation and economists polled by Reuters said there is a high risk the U.S. Federal Reserve will raise interest rates by half a percentage point some time this year.

The European Central Bank is likely to make as few policy commitments as possible on Thursday.

SPREADS: Cash copper, aluminium and zinc have flipped to a discount versus the three-month contracts, pointing to ample supply of quickly deliverable metal.

NICKEL: The LME does not expect to resume nickel trading before Friday after halting it on Tuesday when a short squeeze sent prices soaring above $100,000 a tonne.

METALS PRICES: LME copper was up 1.3% at $10,132.50 a tonne, zinc was unchanged at $3,940, lead fell 1% to $2,381 and tin was down 2.3% at $43,200.

(Reporting by Peter Hobson)