Reuters news agency reports that French President Emmanuel Macron personally intervened to convince Canadian Prime Minister Justin Trudeau to help Airbus and other aeronautics companies by exempting them from sanctions imposed on Russian titanium, three people with knowledge of the matter said.
The delicate request was made during a phone call between the two leaders in March, weeks after Canada, unlike other allied nations, imposed sanctions on imports of the strategic metal, alarming France’s Airbus and other companies still reliant on supplies. Russian for factories located in Canada or other countries.
A person close to Mr Macron said the French president had made a “significant effort” to persuade Mr Trudeau to make an exception for European companies.
“Numerous messages were exchanged at all levels,” said the person close to the French president, referring to the extensive diplomatic and industrial pressure.
A Canadian with knowledge of the matter said Mr. Macron raised the issue during a phone call with Mr. Trudeau on March 29, ahead of a visit by French Prime Minister Gabriel Attal, who also raised the issue during meetings in Canada.
At least one other European government stepped in to support the lobbying, a third person said.
Ottawa initially resisted, but within days changed its policy by exempting Airbus and several other companies from the sanctions. This easing of sanctions, first announced by the Reuters news agency, caused disagreements over sanctions policies and was criticized by Ukraine’s ambassador.
“It was not easy to remove the sanctions. I think that if the French government had not repeatedly raised the issue at that level, we would have remained quite firm,” said the Canadian source.
The offices of both leaders declined to comment and Airbus said it was “compliant with all sanctions imposed in relation to Russia”.
The sources spoke on condition of anonymity because of the sensitivity of the case.
CAUGHT OFF
The high-level effort to preserve Russian titanium supplies highlights how difficult it is for Western countries to punish Russia for its war in Ukraine without damaging supply chains for industrial sectors that take years to plan. earlier.
Russian state-backed company VSMPO-AVISMA is historically the largest producer of aerospace titanium, whose strength and light weight make it ideal for engine parts and landing gear for large aircraft.
Weaning industries off Russian titanium and other vital minerals produced in countries like China is proving difficult.
“The problem is that a new titanium plant … takes years to build and it may take a year or two to get certified,” said Kevin Michaels, director of the firm AeroDynamic Advisory.
While the West has increased sanctions against Moscow, it has in the past avoided blocking access to VSMPO’s specialized products for fear of harming Western aerospace industries.
Canada’s surprise decision to ban imports from the VSMPO coincided with the second anniversary of the Russian attack on Ukraine and caught the aerospace industry by surprise.
The tense phone calls with Ottawa began “immediately, practically the same day,” a second Canadian source said.
The Airbus company found itself on the front line. All landing gear for its flagship A350-1000 aircraft comes from a single plant in Ontario.
“Airbus was one of the biggest lobbying voices and they did it through the French government as well,” said the first Canadian source. Airbus officials and French officials declined to comment.
Canada’s decision rocked the supply chain.
Escalation of consequences
US aerospace giant RTX RTX.N is responsible for building the landing gear of the A350-1000 aircraft at its Collins Aerospace subsidiary’s Oakville plant near Toronto.
After Ottawa’s decision to ban Russian titanium, the Collins company stopped receiving raw materials, the sources said.
The RTX company declined to comment. An additional $175 million in tariffs had to be paid in April to cover new supplies, partly because of Canadian sanctions.
Canada’s sanctions may have also hurt Airbus rival U.S. Boeing BA.N, but its manufacturing operations were not hurt because of an exemption granted to French equipment supplier Safran SAF.PA, industry sources said. .
The Boeing Company announced in March 2022 that it had stopped buying titanium directly from Russia and is widely seen as less exposed to this politically sensitive topic than its European rival.
But like Airbus, Boeing also buys Canadian-made landing gear for the 787 Dreamliner. Two industry sources said the Toronto-area plant run by Safran SAF.PA continues to rely on VSMPO titanium as the company tries to find new sources in Europe.
Safran said last month it had obtained an exemption from Canadian sanctions in a move that supply chain experts said would allow it to continue supplying landing gear for Boeing’s 787 jetliners.
Safran declined to comment further.
The Boeing Company referred questions about subcontractors’ exposure to Russia to supplier firms.
“Boeing currently sources titanium in the United States … and we continue to take steps to ensure long-term continuity,” a spokesman said.
Airbus, which said in December 2022 it would phase out Russian titanium within “a few months, not a few years”, said it was working intensively to reduce dependence, but declined to give a specific date for when it would. achieve this.
“This is already in the process and is being implemented as soon as possible,” said a spokesperson.
Canada has not said when the sanctions exemptions will expire, but a person familiar with the matter said the industry has been granted a three-year exemption from the sanctions. Ukraine has asked Western countries to deepen their sanctions.
Some fear the dispute with Canada could exacerbate another dilemma for aerospace firms: complaints against the sanctions highlight their dependence for strategic materials on exporting countries, which in turn could use that power to counter to the West.
China said on Thursday it will impose restrictions on exports of some important aerospace components starting July 1. /VOA
