French people

French aerospace manufacturer Safran stops its JVs in Russia

PARIS — France’s Safran SA, one of Europe’s largest aerospace companies, has halted all operations in Russia due to Western sanctions following the invasion of Ukraine, dealing a blow to Russia’s civil aviation industry .

Safran produces the engines, landing gear and engine cowlings for the Sukhoi Superjet 100, a regional airliner, under a joint venture with UEC NPO Saturn, a state-controlled Russian engine manufacturer. He is also a minority shareholder in Volgaero, a joint venture with Saturn that produces parts for the engines that Safran sells in the West.

“All activities mentioned above have been halted to comply with US and EU sanctions,” the company said.

Western sanctions have hit some Russian manufacturers hard, cutting them off from global supply chains. AvtoVAZ, the parent company of Russian carmaker Lada, has halted production because it can no longer source components from abroad. Among other suppliers, the company relies on parts from a factory in Romania owned by AvtoVAZ’s parent company, French automaker Renault SA.

US and EU sanctions specifically target the aerospace industry, in addition to broader sanctions against Russian banks.

Safran’s Russian joint ventures are expected to face major hurdles to continue operating without the key elements and expertise that Safran provides to French companies. The activities employ 500 people and generate around €300 million in annual revenue, or around 2% of Safran’s total.