AIRBUS SE 
The phone call came in March, a few weeks after Canada broke ranks with its allies and introduced sanctions on this strategic metal, worrying aerospace companies led by France-based Airbus, which still rely on Russian supplies to power their factories in Canada and elsewhere.
"President Macron made a significant effort to persuade Prime Minister Trudeau to grant an exemption for European aerospace," a source close to the French presidency told Reuters. Numerous messages were passed on at all levels, he stressed.
A Canadian source said that Emmanuel Macron had broached the subject during a call with Justin Trudeau on March 29, in preparation for the visit of French Prime Minister Gabriel Attal, who also discussed the issue during his visit to Canada.
Initially unshakeable, Ottawa's position softened in the days that followed, with the granting of exemptions, notably to Airbus. This set off a political controversy and prompted criticism from the Ukrainian ambassador.
"It wasn't easy to get the sanctions lifted. I think if the French government hadn't raised it at this level, we would have remained quite firm," said the Canadian source, speaking on condition of anonymity like the others.
"COMPLETELY SURPRISED"
These efforts at the highest level to maintain Russian titanium shipments highlight how difficult it is for Western nations to sanction Russia for its war against Ukraine without damaging the supply chains of some of their most sensitive industries.
Russia's VSMPO-AVISMA has historically been the leading producer of aerospace-grade titanium. Its strength and lightness make it an ideal material for components that undergo the heaviest stress in flight, such as engine parts and landing gear for large jets.
Canada's little-noticed decision to ban VSMPO imports coincided with the second anniversary of Moscow's invasion of Ukraine, and took the aerospace industry by surprise, according to several sources involved in the discussions.
While the West has piled increasing sanctions on Moscow, it had previously avoided blocking access to VSMPO alloys and forgings for fear of harming its own aircraft manufacturers.
The calls to Ottawa began "immediately, literally the same day", said a second Canadian source.
Airbus found itself on the front line. All the landing gear for its flagship A350-1000 aircraft comes from a single plant in Ontario.
Without these landing gear, Airbus cannot complete its plans to increase production of Europe's largest twin-engine jet, which, after a slow start, is competing more and more intensively with Boeing's rival 777X.
"Airbus was one of the strongest voices to apply pressure, and they also did so through the French government," said the first Canadian source. Airbus and French officials declined to comment.
DOMINO EFFECT
U.S. aerospace giant RTX is to build the landing gear for the A350-1000 at its subsidiary Collins Aerospace's 37,000 sq. m. plant in Oakville, just outside Toronto.
Faced with Ottawa's decision to penalize the use of Russian titanium, Collins has suspended its purchases, the sources said.
In April, it took a $175 million charge to cover new supplies, partly related to the Canadian sanctions. RTX declined to comment.
Analysts point out that Airbus is more exposed to Russian titanium than Boeing, which announced in March 2022 that it had stopped buying titanium directly from Russia.
But like Airbus, Boeing buys Canadian-made landing gear for its 787 Dreamliner. Two industry sources said that the Toronto-area plant run by France's Safran also uses VSMPO titanium.
Safran said last month that it had obtained its own exemption from Canadian sanctions, without giving further details.
"Boeing currently sources titanium primarily from the U.S. (...) and we continue to take steps to ensure long-term continuity," a spokesman said.
Ottawa now feels that officials looking for ways to punish Russia may have gone too far, the first Canadian source said.
"This war is now two years old, people are looking for every possible lever to apply pressure. They looked at the data and said 'We think we can do this' and it turned out we had to make some adjustments."
With its waivers, Ottawa has given companies three years to find alternatives, said a source close to the measures.
But the pressure to diversify supply is likely to grow. The Ukrainian Canadian Congress, a pro-Ukrainian Canadian organization, has called on the government to abolish the derogations and wants allies to copy the sanctions.
"The problem is that it takes years to build a new titanium plant, and certification can take one to two years," notes Kevin Michaels, managing director of AeroDynamic Advisory, a US consulting firm specializing in aerospace.
Airbus said it was working intensively to reduce its dependence, but declined to give a new target date.
"(Written by Tim Hepher; Nicolas Delame, edited by Blandine Hénault)
