Spotlight Boeing: Russia Threatens to Cut Off Titanium

You can only push countries so far before they decide to push back. Russia may do just that.

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

Comments (17)
No. 1-17
thimk
thimk

Although this is old news that has recently resurfaced , japan has located large deposits of rare earths. Apparently it was initiated after China suppressed their exports of the metals. The point being is when a country sanctions/restrict a vital material/product for export other avenues of procurement are developed or replacement materials substituted . Certainly not a win for the exporting country.

Onni4me
Onni4me

"Europe may not go along with Russia sanctions" I believe the exact opposite. Merkel, Juncker & ally love to sanction and punish Russia. Nothing has been learned from the uselessness of such actions. Kreml couldn't give a hoot what they think. Free trade with Russia would solve a lot of problems in the long run but that would be too wise for our "leaders".

Wagner-
Wagner-

Hey, @Mish. There is some problem with your blog. I have to register again and again with a new account to post comments. Earlier under "Gold's Brick Wall" I posted this response, but I can see it only if I am signed in from my account. If I log out, then I can't see it anymore (here is screen-shot with what I can see when logged in, but others probably can't see):

Can you check where is the problem?

Kinuachdrach
Kinuachdrach

It is really sad that Democrats reacted to the people's judgement on Crooked Hillary by inventing the story that Trump won only because the Russians interfered in the election. If not for that Democrat nasty lie, there would have been a very good chance that Presidents Trump & Putin would have cooperated quite effectively -- both are patriots, looking out for the best interests of their countries.

But those lying Hillary supporters boxed President Trump in -- any cooperation with Russia would have been pounced on as "evidence" of a quid pro quo for Russia screwing Hillary. Their extreme partisan stupidity unfortunately has real world consequences, for which we will all suffer.