Putin convenes meeting on development of rare earth metals industry in Russia
Photo: Russian President Vladimir Putin (Getty Images)
Russian President Vladimir Putin convened a meeting on the development of the rare earth metals industry in Russia on the evening of Monday, February 24, Russian media reports.
Putin stated that rare earth metals are critically important for microelectronics, energy, the digital economy, as well as Russia's civilian and defense sectors. In his opinion, the development of this industry will help boost Russia’s economy.
"This field is the most important resource base of the modern economy. Rare metals are in demand in microelectronics, energy, and the creation of digital economy infrastructure. In many sectors of both the civilian and defense spheres," the Kremlin leader said.
At the same time, Putin instructed to strengthen the potential of Russian industry in the field of new materials. In particular, he ordered the establishment of a full production line and a complete cycle for the rare and rare earth metals industry, ensuring their extraction and processing up to the production of high-tech goods with high added value.
"The output of such products must increase significantly. I emphasize that this is truly our strategic groundwork for the future, a priority direction that already today determines and will continue to determine the country's global competitiveness," the Kremlin leader said.
Rare earth metals in Russia
Russia possesses significant reserves of rare earth metals, which are critically important for modern technological industries. The main deposits are located in the Murmansk region, Krasnoyarsk Krai, Yakutia, and other areas. However, despite its rich resources, Russia currently lags behind global leaders such as China in rare earth metal extraction and processing.
Putin has repeatedly emphasized the need to expand the extraction and processing of rare earth metals as a strategic priority for Russia's economy. Investments in this sector have been increased.
Beyond economic benefits, the Kremlin views rare earth metals as an important geopolitical tool. Under Western sanctions, Moscow may use its control over strategic raw materials to strengthen its influence in international markets. At the same time, other countries remain skeptical about Russia’s ability to rapidly develop this sector to China’s level, given technological limitations, a lack of investment, and the complexity of processing such materials.
Agreement between Ukraine and the US
Recently, the US government proposed that Ukraine sign an agreement involving the transfer of a portion of its rare earth metals to the United States.
Initially, Washington suggested that Kyiv establish a $500 billion fund, where revenues from rare earth resource sales would be directed. According to the proposal, the US would receive economic and managerial rights over this fund. US President Donald Trump argued that this would allow Ukraine to "repay its debt" for the assistance provided by the US.
However, Ukrainian President Volodymyr Zelenskyy noted that the US has provided $100 billion in aid to Ukraine and stated that he does not intend to recognize grants as debts.
Today, Ukraine’s Deputy Prime Minister for European and Euro-Atlantic Integration, Olga Stefanishyna, announced that Ukrainian and American teams are in the final stages of negotiations on rare earth metals.
Meanwhile, Axios has obtained new details of the draft agreement between the US and Ukraine regarding rare earth elements.
