Russian President Vladimir Putin has proposed a potential economic deal with the US that includes joint exploration of Russia’s rare earth metals deposits and the supply of aluminium to the US market, reported Reuters.
This offer comes in the wake of US President Donald Trump’s announcement of upcoming “major economic development transactions with Russia”.
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During a state TV broadcast following a meeting with ministers and economic advisers, Putin expressed Russia’s readiness to engage in joint projects with US partners including both governmental structures and companies.
Putin highlighted Russia’s significant resources of rare earth metals, stating that they exceed those of Ukraine, which is also in talks with the US over a similar deal.
Russia is estimated to hold the world’s fifth-largest reserves of rare earth metals (3.8 million tonnes) as per US Geological Survey (USGS) data. The country has expressed its openness to exploring these resources with the US.
Rare earth metals are crucial for manufacturing electronics such as electric vehicles, cell phones and missile systems, the report said.
Despite its large reserves, Russia currently mines only 2,500 tonnes of concentrate annually and lacks processing capacity.
Putin mentioned the possibility of Russian companies supplying up to 2mt of aluminium to the US market annually, provided that prohibitive duties introduced in 2023 are lifted.
He suggested that this supply would not significantly affect price formation but could have a restraining influence on prices.
The Russian President also proposed joint efforts in hydropower generation and aluminium production in the Krasnoyarsk region in Siberia, the base for Russia’s largest aluminium producer, Rusal. He estimated that the potential investment in this project could reach $15bn (Rbs1.3trn).
Putin noted that some Russian and US companies were already in contact regarding joint ventures in the energy sector, although he did not provide further details.
Emphasising the importance of rare earth metals for Russia’s economic development and competitiveness, Putin stated that the government aims to increase the output of high-technology goods several times over as a result of national projects.
