(Reuters) - Boeing and United Technologies have been amassing titanium parts from Russian producer VSMPO-Avisma in case tensions between the United States and Russia disrupt supply of the metal critical to building jetliners, the Wall Street Journal reported, citing an industry official familiar with the plans.
Boeing Co, United Technologies Corp and Airbus Group NV buy a substantial share of their titanium requirement from VSMPO-Avisma Corp, WSJ reported. (on.wsj.com/1kqfVoE)
Efforts to stock up on titanium parts began in March 2014, after the annexation of the Ukrainian region of Crimea by Russia triggered tensions between Moscow and Western governments, the newspaper said.
Representatives at Boeing and United Technologies did not immediately respond to Reuters’ request for comment outside regular U.S. business hours.
In response to the conflict in Ukraine, the United States has for several months been leveled sanctions on Russian individuals and smaller companies.
Western countries initially imposed mild sanctions on Russia after it annexed Ukraine’s Crimea peninsula in March, but tightened them after flight MH17 was shot down on July 17.
Companies in the Eurozone have also felt the pinch of the standoff.
Reporting by Ankush Sharma in Bangalore; Editing by Gopakumar Warrier