Updated: June 23, 2022 4:43 p.m. STI
Washington [US]Jun 23 (ANI): Airbus, the world’s largest commercial aircraft manufacturer, has called on the West to avoid sanctions against Russian titanium, according to a media report.
The development comes amid a wave of export restrictions on other Russian products ranging from vodka to steel.
Titanium has so far been excluded from EU and US sanctions lists, but many buyers have reduced their exposure to Russian sources and found alternative suppliers for a number of reasons, including the difficulty in making payments to Russia.
However, the European aircraft manufacturer still imports large quantities of titanium from Russia. He has publicly called on the European Union to suspend the imposition of sanctions on the metal, which is used to make critical components of its planes, including landing gear and pylon attachments that connect an engine to a wing, reported the Wall Street Journal.
Airbus chief executive Guillaume Faury said: “We think sanctioning titanium from Russia would be sanctioning us.”
Russian titanium sales are “one of the few areas of business where it is not in the interest of either party to disrupt the current situation”, he said in a speech to the media at Doha, according to the Wall Street Journal.
According to the media, Airbus is not the only Western company still buying titanium, but one of the largest Western aerospace companies to do so.
Airbus’ dependence on Russia exposes it to the risk of further sanctions imposed by Europe or the United States, or export restrictions from Russia. It is also subject to reputational risk amid growing public pressure on companies to withdraw financial support for the Russian economy.
Titanium has become an increasingly important material in aircraft production due to its high strength-to-weight ratio and resistance to corrosion. While it is mined around the world, production of titanium sponge, the unfinished raw material, is centered in key regions such as Japan, China and Russia. About 13% of it comes from the latter, according to the US Geological Survey.
The United States, along with the G7 countries and the European Union (EU), have imposed severe and immediate economic costs on Russia for its “atrocities in Ukraine, including Bucha”.
According to an official White House statement, as part of the mechanisms to hold Russia accountable for its actions in Ukraine, the United States announced economic measures to ban new investment in Russia and imposed severe financial sanctions on the country. largest Russian bank and several of its most critical state-owned enterprises and on Russian government officials and their family members.
In the new economic cost, the United States announced full blocking sanctions against Russia’s largest financial institution, Sberbank, and its largest private bank, Alfa Bank. This action will freeze all Sberbank and Alfa Bank assets affecting the US financial system and ban Americans from doing business with them. (ANI)