By Dhirendra Tripathi
Investing.com – Boeing (NYSE:BA) stock traded 0.6% lower in premarket Monday after the company suspended purchasing titanium from Russia.
"Our inventory and diversity of titanium sources provide sufficient supply for airplane production, and we will continue to take the right steps to ensure long-term continuity," the company said.
The step holds wide implications for the planemaker's relationship with its largest supplier of the commodity, VSMPO-Avisma.
The titanium supplier is now reorienting its sales policy to other markets, it said in a statement.
According to a Reuters report, Boeing is not concerned about the potential supply disruptions as it had diversified its titanium supply chain since 2014 when Russia was sanctioned for its annexation of Crimea.
VSMPO-Avisma, which is owned 25% by state conglomerate Rostec, is currently not under any sanctions.
Boeing joins a growing list of companies that either have withdrawn from Russia or curtailed their operations in the country. This includes Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Nike (NYSE:NKE), BP, (NYSE:BP) and many others.