Canada Grants Airbus Approval to Use Russian Titanium

Canada granted approval for Airbus to use Russian titanium in its manufacturing processes, marking a reversal after being the first Western government to restrict the supply of this critical metal as part of recent sanctions. Read on to learn more.

In a significant decision, Canada granted approval for Airbus to use Russian titanium in its manufacturing processes, marking a reversal after recent sanctions and being the first Western government to restrict the supply of this critical metal.

Titanium is used in the manufacture of aircraft engines because of its light weight and strength. Canada had imposed sanctions on Russian titanium exports in February, only to reverse the decision this week. 

The approval offers Airbus greater flexibility in its Canadian operations, addressing concerns that potential bans on European-made jets, which heavily rely on lightweight titanium, could disrupt its core activities in Canada. 

Airbus Canada has manufacturing facilities in both Ontario and Quebec, with over 4,000 employees. 

However, according to a Canadian source with firsthand knowledge of the situation, the exemption granted to Airbus Canada is temporary. The source, who spoke anonymously due to the sensitivity of the issue, also disclosed that Canada's exemptions only apply to the aerospace sector, including both civilian and military domains.

Responding to Reuters' inquiry, Airbus Canada acknowledged the Canadian government's imposition of sanctions on VSMPO-AVISMA and confirmed obtaining the necessary authorization to ensure compliance with the applicable sanctions. However, the company refrained from disclosing specifics regarding the permits or their duration. Similarly, the Canadian government did not provide comments in response to requests.

VSMPO-AVISMA Corporation is the largest producer of titanium in the world. It specializes in manufacturing titanium, aluminum, magnesium, and steel alloys, and works with major aerospace companies, including Boeing and Airbus. With headquarters in Verkhnyaya Salda, Russia, the company operates facilities in Ukraine, England, Switzerland, Germany, and the United States. 

The decision to grant Airbus Canada a sanctions waiver for the use of Russian titanium has sparked a disapproving reaction from Ukraine's ambassador, Yuliya Kovaliv. 

During an appearance on CBC's Power & Politics, Kovaliv underscored the consequences of such a decision and emphasized that the decision to reverse the ban on Russian titanium perpetuates the Kremlin's war efforts. Kovaliv stressed that allowing Western companies to continue sourcing Russian titanium only fuels the conflict further.

In an update to this story, Canada has extended this exemption to Bombardier, a Montreal-based aircraft manufacturer, so that it can continue to use parts containing Russian titanium produced by VSMPO-AVISMA.

Russia continues to import raw materials from other markets to manufacture and maintain its aircraft, despite sanctions. According to Russian customs data, Gabon unexpectedly emerged as the primary supplier of replacement parts for Russian aircraft in 2023. Ter Assala Parts, a Gabonese-registered company, was the largest supplier of aircraft parts to Russia last year, accounting for $1.48 billion of the nearly $2 billion worth of parts exported.

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