As Ukraine war grinds on, critics say exemption weakens economic campaign against Moscow.
Policymakers in Washington, Brussels and London are facing growing calls to sanction Russia’s titanium industry, as Western policymakers face mounting pressure to close what critics describe as a significant loophole in the sanctions regime targeting Moscow.
President Trump is apparently growing increasingly impatient with Vladimir Putin and keen to force the Russian leader’s hand. He is said to be set to announce a cache of tough sanctions against Russia.
The war in Ukraine, now into its third year, has triggered sweeping Western measures to cut off Russian energy exports and isolate key sectors of its economy. But one vital material—titanium—has remained largely exempt, amid concerns over supply chain disruptions in aerospace and defense.
That carve-out is increasingly under scrutiny with some now calling for titanium to be included in any fresh sanctions against Russia.
Titanium’s strength, low weight and resistance to corrosion make it indispensable in advanced manufacturing, especially for aircraft and military applications. While not rare, it is difficult and costly to refine. Russia, through VSMPO-AVISMA, the world’s largest producer of aerospace-grade titanium, has long been a dominant player in the market.
Prior to Russia’s 2022 invasion of Ukraine, the Urals-based company is believed to have supplied as much as 60% of Airbus’s titanium needs and an estimated 80% of Boeing’s, according to industry officials. To prevent a shock to global aerospace production, titanium was excluded from initial sanctions packages.
Three years later, that rationale is losing ground.
Both Airbus and Boeing have since reportedly diversified their supply chains, tapping U.S., European and Asian producers and drawing down stockpiles. Airbus is now reported to source just 20% of its titanium from Russia, with executives signaling further reductions ahead. Boeing has deepened its ties with domestic and allied producers.
“Major aerospace firms have restructured their supply chains significantly,”
said a senior European trade official.
“The risk of serious disruption has diminished.”
Investment in alternative capacity has accelerated. French manufacturer Aubert & Duval completed upgrades to a key forging press once reliant on Russian input. U.S. companies such as ATI Titanium and TIMET have expanded smelting and forging operations. Japan, Kazakhstan and Bahrain have also increased output, offering fresh options for Western buyers.
These shifts are already impacting the Russian titanium sector. Analysts claim that VSMPO’s sponge production has dropped sharply since the war began, with exports declining as financing dries up and Western demand evaporates. Most of its current output now feeds domestic consumption or flows through secondary markets in China.
Still, Russia remains a significant player in the titanium supply chain—and a source of foreign currency for the Kremlin.
“There’s a growing view that the titanium carve-out no longer reflects market reality,”
said one EU official familiar with ongoing policy discussions.
“We’re already moving away from Russian supply. The next step is formalizing that shift through coordinated sanctions.”
Some advocates of stronger action argue that the continued exemption not only benefits Moscow economically, but also sends a mixed message about the West’s resolve.
“If strategic autonomy is the goal,”
said one defense analyst,
“then consistency across critical materials is key. Titanium shouldn’t be the exception.”
Opponents of immediate sanctions caution that some European firms remain partially reliant on Russian titanium, and stress the need for a phased approach. But even those voices acknowledge that the ground is shifting.
In July, a coalition of European lawmakers called for a formal review of the exemption, urging the European Commission to work with U.S. and U.K. counterparts on a potential sanctions package. Behind closed doors, officials say discussions are already underway.
For now, titanium remains one of the few strategic commodities Russia still exports to the West with relative ease. That may soon change.
“A coordinated move by the U.S., EU and U.K. would mark a turning point,”
said a former U.S. trade official.
“It would close a significant gap in the sanctions framework and send a clear signal that no sector is off limits indefinitely.”
As Western allies recalibrate their economic response to a protracted conflict, titanium may be the next domino to fall.
