Ottawa authorizes the aerospace sector to obtain Russian titanium | War in Ukraine

Canada grants an exemption to companies in the aerospace sector allowing them to obtain Russian titanium in their production, despite the sanctions imposed by Ottawa in this industry, said the head of diplomacy, Mélanie Joly, on Thursday. According to our information, this is a “limited” and temporary measure.

Responding to questions from journalists in Saskatoon, the Minister of Foreign Affairs said that this measure aims to protect jobs here in Canadaall in now maximum pressure on the Russian regime.

However, she did not specify how many companies are affected by this partial exemption, but Airbus and Bombardier have announced that they will benefit from this measure. Boeing, for its part, told Radio-Canada that it does not Source titanium from Russia.

We know that in Quebec and Canada there is a very important aerospace industry. This is why we were able to have a balanced approach.

On Wednesday, the Reuters news agency stated that the European manufacturer Airbus benefited from this exemption for its production in Canada.

The aircraft manufacturer has several factories in Canada, producing A220 commercial aircraft in Mirabel, Quebec, as well as helicopters in Fort Erie, Ontario. The company also has a division specializing in defense and space in Ottawa.

Airbus employs 4,000 people in Canada, including 3,000 in Mirabel.

Maintain activities

According to Reuters, Canada’s exemption should help Airbus keep its operations intact in the country without being affected by Canada’s import ban on Russia’s main titanium supplier, VSMPO-AVISMA.

An Airbus spokesperson confirmed this information to Radio-Canada.

Airbus has become aware of the sanctions imposed by the Canadian government on VSMPO-AVISMA and has obtained the necessary authorizations to ensure compliance of Airbus operations with the applicable sanctions.

On Thursday, Bombardier CEO Éric Martel said that his company, which employs more than 9,000 people in Quebec and 2,500 in Ontario, also benefits from this exemption, according to Reuters.

On February 21, Canada imposed sanctions on 153 Russian entities linked to Russian military-industrial complex, including VSMPO-AVISMA. The company, founded in 1941 in the Urals, is the world’s leading aerospace supplier. A quarter of the company is owned by Rostec, one of Russia’s leading defense industry conglomerates.

The United States and the European Union have refrained from imposing sanctions on the Russian titanium industry, in particular to avoid harming their aerospace industries which still depend on it.

The American aeronautics giant Boeing, for its part, claims to have completely abandoned Russian titanium since March 2022.

The manufacturer, which employs around 14,000 people in Canada, told Radio-Canada currently sourcing titanium primarily from the United Statesbut also in Japan, China and Kazakhstan.

Our inventory and diversity of titanium sources provide sufficient supply for aircraft production and we will continue to take the necessary steps to ensure long-term continuity.

A limited measure

Despite this exemption granted to the aerospace sector, Minister Joly affirms that Canada has one of the toughest and most impactful sanctions regimes in the worldespecially when it comes to Russia.

According to information obtained by Radio-Canada, this exemption will be available for a limited period And permit exemptions issued will only apply to the aerospace sector, including the military sector.

The measure is limited, we learned, and the government has sent a clear message to industrial companies: They must find other sources of titaniumas Boeing already does.

According to Global Affairs Canada, Ottawa has, since 2014, sanctioned more than 2,900 entities and individuals in Russia, Ukraine, Belarus and Moldova.

These measures aim to expose international security violations committed by Russia and those who support it, to limit the Russian government’s ability to finance its illegal war against Ukraine, and to pressure the Putin regime to correct his behaviorindicates a spokesperson for Global Affairs.

The decision to exempt the aerospace sector sparked strong reactions from the Ukrainian ambassador to Ottawa. In an interview with CBC, Yuliya Kovaliv affirmed that the purchase of Russian titanium only fuels the Kremlin’s war machine against her country.

For its part, the Ukrainian Canadian Congress (UCC) calls on Ottawa to reverse course and apply sanctions to all industries that do not respect the sanctions imposed on Moscow, calling on Justin Trudeau’s government to apply a “total embargo” on Russian products.