Russian lawmakers have submitted a wide-ranging bill that could freeze crucial exports to the United States.
The bill, which was drafted by leading lawmakers at the State Duma in response to the new round of U.S. sanctions announced last week, proposes a wide range of restrictions for U.S. businesses in Russia and for cooperation with the U.S. Among them is a proposal to ban or restrict titanium exports that are crucial for U.S. aircraft maker Boeing.
Boeing and other aircraft manufacturers are increasingly reliant on titanium as a strong but lightweight material for use in wing assemblies, steering wheels, hydraulic systems and a number of other parts, CNBC reports.
A Boeing 777 has up to 12 percent of titanium in its airframe, and Russia is the world's largest titanium producer and the main supplier to Boeing.
Duma speaker Vyacheslav Volodin told Russian news agencies that the bill could be put up for vote next week.
Stop the Nonsense
Sanctions on Russia and tariffs on China are both counterproductive. Nonetheless, here we go again.
Europe may not go along with Russia sanctions, so perhaps the US can get titanium via Europe, at extra cost, if Russia carries out the threat.
At a minimum, expect the price of titanium to rise.
Mike "Mish" Shedlock