Exchange of incentives continues as part of efforts to end the war in Ukraine.
Russia is rich in rare earth reserves and is willing to use them to get a better deal from the U.S. on Ukraine, a statement by a high-ranking government official in Moscow has indicated.
The hint came with a comment listing areas for potential cooperation between the two powers that are yet to resolve a major geopolitical issue standing in the way of bilateral business – ending the war.
Moscow offers Washington Russia’s rare earth riches
Russia is pulling another trump card in the context of careful rapprochement with the United States, part of tricky negotiations on how to terminate the military conflict in Ukraine.
The two nations could collaborate in metallurgy, including projects involving rare metals and rare earth elements, Russia’s First Deputy Prime Minister Denis Manturov said in an interview with the TASS news agency. He also highlighted the opportunity for nuclear trade, elaborating:
“In traditional industries, there is room for cooperation. For example, Russia could supply uranium for U.S. nuclear fuel production. This applies to steel, too. Our president has also mentioned potential collaboration on rare metals and rare earth metals.”
The Russian Federation has significant reserves of the latter, which creates opportunities for joint initiatives, Manturov emphasized.
“Other areas may emerge as we move forward on the topics I have outlined,” the deputy head of the Russian government added.
The suggestion comes after the recent meeting of Russian President Vladimir Putin with his U.S. counterpart Donald Trump in Alaska.
Addressing the press following the talks, Putin stressed that resolving the Ukrainian conflict was the main topic of the summit.
At the same time, the Russian leader called for turning the page in relations with the United States and returning to bilateral cooperation.
Rare earths become a bargaining chip in peace negotiations
In his interview, Denis Manturov referred to statements made by Putin earlier this year. He first pitched the proposal in February, indicating Russia was open to working with the U.S. in the mining of rare earth metals.
What’s more, the master of the Kremlin made it clear his proposal covered Russia-annexed Ukrainian regions as well:
“We are ready to attract foreign partners to the so-called new territories. There are also certain stocks there.”
Rare earths are a group of over a dozen metallic elements with unique magnetic and other properties, making them essential for high-tech applications, from electronics and electric motors to defense systems.
While they are not actually that rare in the Earth’s crust, low concentrations make their extraction quite difficult and definitely expensive.
This spring, the Trump administration signed a major “minerals deal” with Ukraine that grants the U.S. preferential access to its natural resources, including its rare earth metals.
According to Washington, the agreement will help repay billions of dollars’ worth of U.S. military aid for the Eastern European nation invaded by Russia in 2022.
Rare earths have become a bargaining chip in the peace talks. According to a report by the Telegraph published ahead of the meeting in Anchorage, Trump wanted to offer Putin access to Alaskan natural resources and rare earth minerals in the Ukrainian territories currently occupied by Russia.
When asked to comment, the American president tried to downplay the significance of the matter:
“As far as rare earth, that’s very unimportant. I’m trying to save lives.”
The exchange of incentives extended by both sides has been going on for a while. This week, a Reuters report unveiled that the U.S. enticed Russia with energy deals before and during the presidential summit.
Meeting with nuclear industry workers last week, Vladimir Putin confirmed Moscow and Washington are exploring opportunities for joint work in the U.S. state of Alaska in the field natural gas liquefaction and revealed the discussions also concern Russia’s Arctic zone.
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