Boeing, Russia's VSMPO to launch JV Tues -sources

MOSCOW, July 6 (Reuters) - U.S. aircraft giant Boeing (BA.N) and Russia's VSMPO-Avisma (VSMO.MM), the world's top titanium maker, will launch their titanium venture on Tuesday, sources at the Russian firm said on Monday.

The launch comes as U.S. President Barack Obama arrived in Moscow on Monday for two days of talks. The visit is expected to generate over $1.5 billion worth of deals [ID:nL6105150]

The venture, known as Ural Boeing Manufacturing (UBM), which had an initial investment budget of $60 million, expects to produce $700 million to $900 million worth of titanium for the Boeing 787 Dreamliner.

The 50-50 joint venture was formed in 2007 and it had originally expected to begin operations last year.

VSMPO-Avisma, located in the Ural mountains, exports some 70 percent of its output and has major aircraft firms, including Boeing and Airbus (EAD.PA), among its clients. (Reporting by Natalya Shurmina and Polina Devitt, writing by Alfred Kueppers)