Russia Sanctions Not Hurting Industry Yet

Indeed, titanium supply constrictions could become a sore point for companies such as Boeing if more sanctions are applied, several analysts note, meaning at least higher prices for the element. “That is going to be a key concern,” says Richard Aboulafia, vice president for analysis at the Teal Group. The aerospace industry is one of the top customers for titanium alloy products, with newer commercial aircraft using far more than previous generations due to its favorable strength-to-weight ratio. Boeing has forecast it would spend $27 billion on Russian titanium supply, design engineering and services “over the next decades.” In July 2009, Boeing and VSMPO-Avisma, Russia’s largest titanium producer, started a 50/50 joint venture, Ural Boeing Manufacturing (UBM) in Verkhnyaya Salda.