By Marijana Milic
As the war in Ukraine drags into its third year, Europe has broken its dependence on Russian oil, gas and coal. But one strategic metal has escaped serious restrictions: titanium.
The exemption was deliberate. Titanium is a critical input for aerospace, defence and medical industries. Airbus and Boeing built their supply chains around Russian production and officials worried that cutting ties would disrupt aircraft manufacturing.
Now that argument is wearing thin. Airbus, Boeing and other manufacturers have found alternatives. Russia鈥檚 titanium champion, VSMPO-AVISMA, has lost market share, while producers in the US, Europe and Asia are expanding capacity. Analysts and policymakers say the time may have come to close the titanium loophole in sanctions policy.
A Strategic Metal
Titanium is lightweight, strong and corrosion resistant. Those traits make it essential in jet engines, landing gear, chemical plants, naval vessels and surgical implants. The global market is on track to hit $52 billion by 2030.
Russia holds about 14.5% of known reserves, but its real power lies in processing. VSMPO-AVISMA, based in the Urals, built itself into the world鈥檚 largest integrated titanium producer. Before 2022 it supplied about 60% of Airbus鈥檚 titanium and 80% of Boeing鈥檚.
A Shift At Airbus and Boeing
That dominance has cracked. Airbus has drawn down inventories and diversified supply, cutting VSMPO鈥檚 share of its titanium procurement from 60% to roughly 20%. France鈥檚 Aubert & Duval has upgraded heavy forging facilities and won certification to supply parts once sourced only from Russia. Boeing and France鈥檚 Safran have stopped buying Russian titanium altogether.
The shift reflects both corporate planning and geopolitical reality. 鈥淭he risk of overdependence on a Russian state supplier became obvious in 2022,鈥� said one European aerospace analyst.
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New Supply Lines
Western and allied producers are moving fast.
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ATI Titanium (U.S.) is boosting output 80% with new furnaces
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Howmet Aerospace (U.S.) is scaling up recycled and advanced alloys
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TIMET (U.S.) is adding melt and forge capacity
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Aubert & Duval (France) has modernised its 60,000-tonne press
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Japan has doubled sponge output
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Kazakhstan has struck deals with the EU to ship raw titanium
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Bahrain Titanium (BTI) is building a new aerospace-grade complex
Those moves, combined with three years of inventories, mean Airbus and other manufacturers now have flexibility that was missing at the start of the war.
VSMPO Under Pressure
VSMPO鈥檚 position has weakened. Sponge production has dropped from 32,000 tonnes before the war to about 17,000 today. Financing channels are limited. With fewer international customers, the bulk of output now goes to Russia鈥檚 domestic industry. Some exports are routed through China, complicating traceability, but the volumes don鈥檛 match prewar sales.
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Who Owns VSMPO?
The company鈥檚 shareholder base is another issue. At least 25% is owned by Rostec, the state defence conglomerate led by Sergei Chemezov, a longtime ally of President Vladimir Putin. Rostec is sanctioned by the US, EU, UK and others.
In Europe, that level of ownership is considered 鈥渄e facto control,鈥� meaning sanctions should already extend to VSMPO. The U.S. applies a 50% threshold, but the effect is the same: Rostec鈥檚 influence makes VSMPO part of the Kremlin鈥檚 military-industrial network.
A Sanctions Gap
That鈥檚 why analysts say leaving VSMPO untouched undermines the sanctions regime. Western aerospace groups are already shifting away. Alternative suppliers are scaling up. And Rostec鈥檚 control ties VSMPO directly to Russia鈥檚 war effort.
鈥淭he commercial case for continuing the exemption is gone,鈥� said a former European trade official. 鈥淭he only question is when policymakers will align sanctions with reality.鈥�
Closing the gap wouldn鈥檛 mean an overnight ban on titanium imports. Instead, it would bring clarity to companies, investors and regulators. It would signal that the West intends to shut off all strategic revenue streams for Moscow.
For now, titanium remains an outlier. But with reliance on Russian supply shrinking fast, a coordinated sanctions review looks increasingly likely.
