The Titanium Supply Chain Crisis: How It Began And What It Means For The EU Aerospace Industry (1)

The EU Aerospace industry is facing a titanium supply shortage currently after international sanctions were placed on Russia following its invasion of Ukraine.

But what does this mean for the aerospace industry? AeroTime takes a closer look at the facts surrounding the crisis.

Back in February and March 2022 much debate surrounded just how far the European Union would go when it came to imposing sanctions on Russia. One reason for this, as well as being the main point of criticism expressed by those who opposed the sanctions, was the damage that could be caused to the European economy as a result.

Multiple warnings were issued by industry experts, who called for the sanctions to be well thought-out and prepared because anything less could lead to significant economic damage in the long run. These warnings were often at the forefront of discussion related to subsequent sanctions rolled out by the EU in the months that followed.

This argument was reiterated by Airbus, Europe's largest aerospace manufacturer, with the company expressing concerns about sanctions placed on one Russian company in particular – VSMPO-AVISMA, Russia's state-run producer of titanium.

In April 2022 Airbus CEO Guillaume Faury said sanctioning the company would damage European aerospace, "while barely hurting Russia's economy". Faury repeated the same argument in June amid a new sanctions package imposed on other Russian goods.

It was reportedly this argument that led VSMPO-AVISMA to be removed from the sanctions list, allowing the flow of Russian titanium to continue into Europe.

(To be continued)