U.S. aviation giant Boeing and Russia's SMPO-Avisma, the world's largest titanium producer, have formed a joint venture to produce titanium for Boeing commercial airplanes, the Interfax news agency reported on Friday.

The joint venture, with the two companies holding a 50-percent stake apiece in it, will produce titanium parts for Boeing 787 Dreamliners, Interfax said, citing a Boeing statement.

"VSMPO will expand its capabilities in titanium parts production, and Boeing will increase efficiency and reduce the waste associated with titanium machining," Mike Cave, vice president of Airplane Programs for Boeing Commercial Airplanes, was quoted as saying.

"Boeing will continue to work closely with all government agencies to ensure our joint venture and all other activities in Russia remain compliant with all U.S. and international obligations," Cave said.

The announcement came amid fears that U.S. sanctions on Russian state arms exporter Rosoboronexport and aircraft maker Sukhoi could affect Boeing's projects with Russian companies, including joint work on a regional jetliner with Sukhoi.

The U.S. State Department earlier this month slapped sanctions on Rosoboronexport and Sukhoi for their alleged arms deals with Iran. Both companies denied the allegations.

Russian President Vladimir Putin offered support for Boeing's business in Russia during a meeting Friday with Alan Mulally, president of Boeing Commercial Airplanes.

"On our part, we will support the development of your business in Russia," Putin said.

Russia is cooperating with Boeing in many fields, including space, and contracts for 3.5 billion U.S. dollars have been signed recently, he said.

"Today's event will help you rise to a new level of cooperation," Putin said, referring to the titanium joint venture.

Source: Xinhua