ASK OCE — April 4, 2006 — Vol. 1, 1 Issue 7

The co-owner of Russia’s VSMPO-Avisma, the world’s largest producer of aerospace titanium, has said that he and his partner may sell their shares of the company to Rosoboronexport, Russia’s state-owned arms trading corporation.

The move by Rosoboronexport is seen by analysts as part of a larger effort by the Russian state to establish control over its strategic assets. Last year Rosoboronexport took over Russia’s largest car maker, AvtoVAZ.

The potential takeover has led to concerns about a global shortage of titanium if exports are curtailed. VSMPO-Avisma currently produces a third of the world’s titanium supply.

Boeing and Airbus, two of VSMPO-Avisma’s biggest customers, have been given assurances that their contracts will be honored.