United Technologies Affected by Washington-Moscow Tensions
The headlines have been recently dominated by news of unrest in Ukraine, beginning with the Russian annexation of the Crimean peninsula. Friction has escalated even further with fighting breaking out in Eastern Ukraine between the Ukrainian military and Russian-backed up separatists. The catalyst was the mistaken shoot-down of a Malaysian airlines commercial jetliner over Ukraine which has resulted in international condemnation.
Consequently, he US aerospace industry has been put in an uncomfortable position as of late, in addition to other major contractors for the US military.With US and EU sanctions imposed on the banking and energy businesses in Russia, sanctions on the titanium trade are surely soon to follow. Companies such as Boeing and United Technologies along with Airbus Group purchase a very sizable share of their titanium from VSMPO-Avisma Corp, which is a Russian-based entity.
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