Calls growing for tougher sanctions on Russia's titanium trade

As the war in Ukraine grinds relentlessly on into its third year, Europe has made notable strides in weaning itself off Russian hydrocarbons. Oil, gas and coal are all now subject to sweeping restrictions.

Yet one strategic material continues to slip through the sanctions net: titanium.

A growing number of industry specialists, security analysts and policymakers are now urging the European Union, UK and US to reassess their position on Russia’s titanium sector. At stake, it is argued, is not just supply chain security, but the credibility of Western sanctions policy.

Titanium is abundant in nature, but its unique blend of strength, light weight and corrosion resistance makes it indispensable in aerospace, defence, marine, chemical and medical applications. The global market is projected to reach $52bn by 2030.

Russia’s reserves account for around 14.5 per cent of the total, but its real strength lies not in mining but in processing. VSMPO-AVISMA, headquartered in the Urals, has long dominated the aerospace-grade titanium market, supplying Boeing, Airbus and many others. Before 2022, it was the world’s largest vertically integrated producer.

When sanctions were first imposed on Russia after the invasion of Ukraine, titanium was explicitly exempted. Western policymakers feared a sudden disruption in aviation supply chains.

That calculation is now shifting, though. It is thought Airbus once sourced about 60 per cent of its titanium from VSMPO while Boeing relied on it for approximately 80 per cent. Today, it is understood that those shares have dropped. Airbus has diversified supply, drawing on inventory reserves and ramping up procurement from other producers, while Boeing and Safran have, reportedly, ceased orders altogether.

Part of this transition stems from new capacity in Europe itself. France’s Aubert & Duval has modernised its 60,000-tonne press, allowing it to produce the large forgings that were previously only available from VSMPO. It is believed that Airbus now relies on the Russian supplier for roughly 20 per cent of its titanium, with further reductions expected.

Elsewhere, Western and allied producers are scaling up. ATI Titanium and Howmet Aerospace in the US have invested heavily in new furnaces and recycling facilities. TIMET is expanding melt and forge capacity. Aubert & Duval is upgrading forging output in France. Japan has doubled titanium sponge production, while Kazakhstan has deepened supply partnerships with the EU. Bahrain’s BTI, meantime, is developing a new aerospace-grade titanium complex.

These developments have strengthened the West’s resilience. With inventories still in hand and new supply routes opening, the once-feared disruption is now far less of a risk.

According to latest media estimates, the impact on VSMPO has been clear with a reported fall in annual sponge production from 32,000 tonnes before the war to about 17,000 today. Whereas 80 per cent of output is thought to have once gone to export markets most now feeds domestic demand. Financing channels remain constrained. Exports routed through China complicate traceability but do not compensate for lost Western customers.

For policymakers, the question is whether the current “halfway house” makes sense. With Airbus, Boeing and other aerospace giants already moving away from Russian titanium, the commercial case for continued exemption looks weaker. Supply alternatives exist, and inventories cushion the transition.

Formally extending sanctions could bring clarity to industry, align transatlantic policy, and prevent loopholes that allow titanium revenues to flow back into Russia’s war effort. It would also reinforce the message that strategic autonomy requires consistent action across all critical materials.

Europe’s reliance on Russian titanium has already diminished sharply but, it has been argued, leaving the sector outside the sanctions framework risks undermining the broader regime. A coordinated review by the EU, UK and US could formalise the new reality, strengthen compliance, and close a gap that Moscow seemingly continues to exploit.

The lesson of the past three years is that resilience comes from diversification, investment and clarity. Titanium should be no exception.

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