The Russian titanium producer is included in the Entity List, which is a milder version of economic restrictions than the SDN List, Interfax reports.
If getting into the SDN List automatically prohibits any trade relations with partners from the United States, then the entity from the Entity List must receive approval for the transaction from a specialized commission. However, a license may be refused if the company's activities are seen as signs of a threat to US national security.
It should be noted that VSMPO-Avisma (Sverdlovsk region) operates mainly as an exporter. According to the company, it ships products to 50 countries and is a key supplier for many. The Russian holding also works with the American market. Earlier, the American company Boeing refused to continue business with it, but other partners remained.
In Russia, the company has established an almost complete titanium production cycle, but it buys raw materials abroad. However, the issue with the Russian raw material base should be resolved in the coming years. Tugansky Ilmenit mine will be able to supply the concentrate required for production.
Alex Shishlo for Rough&Polished
