Geopolitical tensions and the Ukraine War have prompted Western governments and companies to disclaim raw materials purchases from suppliers in Russia and China. But closer analysis of buying patterns reveals, instead, that there are no substitutes for many key materials inputs.

Even for the most critical sectors, such as commercial and military aviation, where national security laws forbid sourcing from unfriendly countries, waivers are routinely issued so that production can continue. Airbus, Boeing, and even the Pentagon simply pass along their requirements to third parties and intermediaries, who then place orders from Russian and Chinese suppliers.

These practices drive up prices, and merely add complexity and delivery times without real diversification. But they serve a public relations function: they allow for top corporate and government officials to claim that they cut off business with Russia and China, without doing so.

Resources and links:

To help Airbus, Macron pressed Canada to ease Russia titanium sanctions

Graphic, “One company makes Russia a global titanium powerhouse”, from the Washington Post and the US Geological Survey

Two years after start of Ukraine war, Russian titanium keeps flowing to West

Closing scene, The Ruins of Saint Paul’s, Macau

Related:

Video: US such a lying nation lack credibility, Airbus, Boeing, and the Pentagon have a Russia-China problem

[CIA, 1985] The Soviet Titanium Industry and Its Role in the Military Buildup (PDF)

Moscow has created the world’s largest titanium metal industry, primarily to support defense industries that produce advanced aircraft, missiles, and submarines. We estimate that the USSR produced approximately 71,000 tons of titanium metal in 1984, roughly 70 percent of global output and more than five times as much as the United States. Titanium production grew rapidly during the industry’s early years, averaging growth of more than 20 percent per year during 1960-70 and about 7 percent per year in 1971-75. Production growth slowed markedly during 1976-80 to an average of about 3½ percent per year and during 1981-84 to an estimated 1 percent annually.