U.S. asks G7 to consider sanctions against Russian palladium and titanium

Bloomberg reported the information, citing a source familiar with the matter. 

According to a source cited by the outlet, officials from the Biden administration discussed this possibility during a meeting of G7 deputy finance ministers on Tuesday in Washington.

Palladium is a crucial component in the production of computer chips and automotive catalysts, while titanium is used in various industries, ranging from aerospace to medical implants.

The outlet says that one of the main problems is that Europe is dependent on these metals and has not previously shown interest in their production. G7 members Germany, France, and Italy will also need the support of the other 24 members of the European Union to impose such sanctions.

The authors note that the imposition of titanium sanctions would be a response to Russian leader Vladimir Putin's September proposal to his government to consider restricting exports of certain goods such as nickel, titanium and uranium in response to Western sanctions.

The United States has already blacklisted Russian titanium, but Western governments are wary of stopping supplies, fearing turmoil in global markets and the destruction of their own supply chains.

Western countries have long been unable to decide on their approach to sanctions against metals from Russia, Bloomberg adds. In December, the price of palladium rose by 12% on speculation that this metal could be next in line for restrictions after the UK imposed sanctions on the purchase of some Russian metals. Earlier, the United States and Britain imposed restrictions on trade in Russian aluminum, copper, and nickel.

At the same time, the United States is still buying Russian palladium. The Russian company Norilsk Nickel accounts for about 40% of global production, a market share that will be difficult to replace quickly.

For the European Union, supplies of both metals from Russia are critical, especially for titanium, which is used in aircraft. Restrictions on titanium exports could lead to higher prices and cause losses to European aircraft manufacturers such as Airbus, the authors note. 

• A bipartisan coalition in the U.S. Congress demands that the Biden administration tighten sanctions against Russia's oil service industry.