Airbus SE has reportedly urged European leaders to refrain from imposing titanium sanctions on Russia, stating that a ban would have a substantial impact on the aerospace sector and would barely affect Russia’s economy.

At an annual stakeholder meeting, Airbus CEO Guillaume Faury stated that broadening sanctions on titanium imports would be inappropriate. However, it is worth noting that Ukraine President Volodymyr Zelenskyy has constantly called out Western governments to impose stricter economic sanctions on Russia.

Recently, the European Union (EU) has revealed that additional sanctions were on the table, with the British Prime Minister Boris Johnson stating that Kyiv’s allies would continue mounting pressure on Moscow.

For the unversed, Russia is the largest producer of titanium which is a strategic metal that is used in jet engines and airplanes owing to its high strength, lightweight, and heat resistance properties. So far, the EU has refrained from banning Russian commodities other than coal and steel, although titanium remains exempted from trade restrictions with the country.

According to credible sources, sanctions on Russia-sourced titanium would barely have an impact on the country as it only holds a small share of its export revenues. However, they would have a substantial impact on the entire aerospace sector throughout Europe.

Airbus is expediting its search for long-term non-Russian supplies while its requirements are catered to in the short and medium-term. In March, Airbus stated that it is directly procuring titanium from other countries and is indirectly obtaining Russian titanium through suppliers.

The aerospace major cited that it is dependent on Russia for nearly half of its titanium demands.

It is also worth mentioning that state-supported VSMPO-AVISMA offered a third of Boeing’s requirements under an agreement that was renewed last November. A month ago, Boeing stated it ceased purchasing Russia-sourced titanium.

Since Ukraine’s invasion, over 400 leading companies have withdrawn from Russia, while some have suspended new investments and other developments.

Source credits:

https://money.usnews.com/investing/news/articles/2022-04-12/airbus-accelerates-hunt-for-alternative-titanium-supplies