VSMPO-Avisma Corporation has deserted from the fight against American imperialism

The titanium producer saw the risk of losing to them a part of the world market due to Russia's sanctions against the US.
13.04.2018
RBC
Origin source
Russian titanium producer VSMPO-Avisma warned that Moscow's response to the United States could harm Russia itself. The threat of losing the world market can put the company and 20,000 of its employees in a difficult situation.

Titanium producer VSMPO-Avisma called on the State Duma deputies to "wisdom and foresight" and expressed the hope that they will not make a decision that could negatively affect the Russian titanium industry. This is stated in the company's message, received by RBC.

"We hope for the wisdom and foresight of Russian lawmakers who, in our opinion, can not make a decision that could negatively affect the Russian titanium industry and the economy of the country as a whole," VSMPO-Avisma said.

The report says that more than 30 years of partnership with the world's leading aircraft manufacturers and "excellent business reputation of the corporation have made it an integral and significant part of the world economy." Violation of cooperation ties, unfulfilled business obligations can "tear" the company out of a dynamically developing titanium market for a long time or even forever, VSMPO-Avisma believes. In addition, as stressed in the company, in the Urals region more than 20 thousand employees will be in a crisis situation.

VSMPO-Avisma is the world's largest producer of titanium, which processes raw materials, produces finished products with a high degree of machining, the company's website says. VSMPO-Avisma supplies products to 50 countries. The staff of the company is 20 thousand people.

On Friday, April 13, it became known that the State Duma had prepared a bill on Moscow's response to new American sanctions. The document provides for a ban on working in several industries with companies where at least 25% of the capital belongs to the United States, organizations from American jurisdiction or from jurisdictions of other states that support sanctions. Restrictions apply to the nuclear industry, the aircraft building and rocket industry.

According to Kirill Tremasov, director of the analytical department of Loko-Invest, if VSMPO-Avisma introduces retaliatory measures by the State Duma, it will lose a huge part of the market. The restrictions proposed in the bill will lead to further isolation of Russia, he assured.

The bill on Russia's response to US sanctions was introduced by State Duma Speaker Vyacheslav Volodin for consideration by the lower house of the Russian parliament on April 13. The document suggests limiting or prohibiting the import of agricultural products, medicines, tobacco and alcohol products from the United States, as well as terminate rights to trademarks owned by US citizens. The item posing a threat to titanium producers is also included in the document. According to the bill, Russia can stop exporting rare earth metals to the US, including titanium. This metal in Russia is also purchased by the aircraft-building corporation Boeing.

The ban on the importation of American medicines may be the first case of imposing sanctions in the health sector. In total, American drugs account for about 10% of the Russian market. In 2017, from the US and from American factories in other countries, the Russian market received medicines worth 82 billion rubles. Among them there are those medicines, whose analogs do not exist.