The European Union blocked a proposal to sanction Russian metals company VSMPO-Avisma on Thursday after France and other member countries objected because of fears of a potential retaliatory ban by Russia on titanium exports, The Wall Street Journal reported Thursday.
The company is a critical supplier of titanium to Airbus ( OTCPK:EADSF ) ( OTCPK:EADSY ), which publicly called for the EU to refrain from banning Russian sales of titanium .
VSMPO provides materials for the manufacture of Russian jet fighters, including aircraft deployed in the war in Ukraine, and was set to be added to a list of defense-related Russian companies sanctioned by the E.U.
Titanium is a relatively small source of income for the Russian economy, with exports totaling $415M in 2020, but Russia supplies as much as half of the global aerospace industry's titanium, and Airbus ( OTCPK:EADSF ) ( OTCPK:EADSY ) buys ~65% of its titanium from VSMPO.
For the longer term, Airbus ( OTCPK:EADSF ) ( OTCPK:EADSY ) has said it is searching for alternative non-Russian supplies .
For further details see:
Russian titanium maker and top Airbus supplier pulled off sanctions list - WSJ