Despite the fact that the full-scale war of the Russian Federation against Ukraine has been going on for almost 2.5 years, Western companies continue to buy titanium for hundreds of millions of dollars from the Russian company "VSMPO-AVISMA", which has deep connections with the defense industry of the aggressor country.
Points of attention
- Dependence on the Russian titan poses a threat to the economic and defense security of the West.
- Many Western countries that support Ukraine continue to cooperate with a Russian company that has ties to the defense industry of the Russian Federation.
- The introduction of sanctions against titanium from Russia can have a significant impact on the economy and security of importing countries and become a step in deterring Russian aggression.
- Titanium production operators are under scrutiny for their possible involvement in manufacturing products for the Russian military and intelligence services.
The West still remains dependent on Russia at the economic level
Ukraine's allies have repeatedly declared their intention to sever economic ties with Moscow, but not all of them have made official decisions.
In the case of titanium, the West's dependence on Russia raises security concerns, industry and defense analysts say, because the metal is indispensable in the production of both commercial and military aircraft.
Russia could block the flow of these materials and leave critical national defense and civil aviation companies empty-handed, warns ImportGenius research director William George.
What is important to understand is that the titanium company VSMPO-AVISMA has not been sanctioned by the United States or the European Union, despite the fact that it is partly owned by Rostec, a defense conglomerate that owns hundreds of companies and is under US and European sanctions.
Rostec is headed by Serhiy Chemezov, an associate of the illegitimate president of Russia, Vladimir Putin, who came under Western sanctions 10 years ago.
What is known about the activities of "VSMPO-AVISMA"
In 2022, VSMPO exported approximately 15,000 tons of titanium worth $370 million.
The vast majority of them were sent to Western countries that supported Ukraine, according to the export database.
The largest quantities of Russian titanium were bought by Germany, France, the USA and Great Britain.
In addition, it is stated that VSMPO-AVISMA, which is a de facto monopoly in Russia, exported at least $345 million in titanium last year.
According to the journalists, data on Russian trade in 2023 was difficult to obtain because the available data lacked most of the details that would indicate transactions with Western firms.
Only two countries — Ukraine and Canada — have imposed sanctions against this Russian company.
In September, the US Department of Commerce imposed export controls on VSMPO, stating that it is "directly involved in the production of titanium and metal products for the Russian military and special services."
However, this control prohibits the export of the company's goods to Russia, not its titanium to the United States.
We believe that the introduction of sanctions against titanium from Russia will mean sanctions against ourselves, Airbus CEO Guillaume Faury told reporters in June 2022.
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