Russian titanium maker pulled off sanctions list

The European Union blocked a proposal to sanction Russian metals company VSMPO-Avisma PJSC at the last minute, EU diplomats said, after France and other member states objected to the move over fears of a potential retaliatory ban by Russia on titanium exports to the bloc.

The company is a critical supplier of titanium to Airbus SE, the world’s biggest commercial jet maker. Airbus, headquartered in France, employs a large workforce across Europe. It has publicly called for the EU to refrain from banning Russian sales of titanium, The Wall Street Journal reported on July 21. 

VSMPO-Avisma Corporation is the world's largest titanium manufacturer with a full technological cycle. The company delivers products to the markets of 50 countries. It is deeply integrated into the global aerospace industry and is a strategic supplier for many states.

The exclusion of "VSMPO-Avisma" from the sanctions list in the EU is justified by the fact that titanium is not the main source of income for the Russian economy. In 2020, exports amounted to $415 million.

The company provides up to 30% of titanium supplies to the global aerospace industry. In particular, it meets up to 40% of the titanium needs of the Boeing aerospace corporation and up to 60% of Airbus's needs.

Airbus, the world’s largest commercial plane maker, is still importing hefty amounts of titanium from one of the country’s biggest exporters. It has publicly called for the European Union to hold off imposing sanctions on the metal, which is used to manufacture critical components of its aircraft, from the landing gear and fasteners to the pylons that connect an engine to a wing. About 65% of Airbus’s titanium supply comes from Russia, according to consulting firm AlixPartners.