Russia offers Siberia's vast rare earth reserves to India
Photo: Indian Prime Minister Modi and Russian dictator Putin (Getty Images)
Russia plans to attract Indian financing to extract undeveloped mineral resources in Siberia. At the same time, Russian propagandists do not forget to reproach Ukraine for selling its land to the Americans under a similar agreement, reports Reuters.
The Kremlin has offered India access to one of the world's largest rare earth metal deposits — Tomtor in Yakutia. The Indian state-owned mining company IREL is holding confidential negotiations with the Russian oil giant Rosneft. The parties are already discussing the transfer of ore samples from the Arctic deposit.
The material will first be processed in Russia, then sent to India. There, specialists will conduct an in-depth analysis of the mineral composition, and only after that will New Delhi decide whether it is worth investing billions in the joint project.
China will be dissatisfied
Overall, as the agency notes, India may be interested in the project, as it seeks to break its dependence on Beijing. China currently dominates this sector and controls most of the world's extraction and processing.
For Russia, which is surrounded by sanctions, this move is also advantageous. Moscow is seeking new ways to develop resource projects. It is deepening ties with key trading partners in Asia.
Control over Tomtor passed to Rosneft last year. The Russian government has intensified efforts to extract critical raw materials.
Why are rare earths important
Rare earth metals are the heart of modern industry. Without them, it is impossible to create powerful permanent magnets.
These elements are critically necessary for:
- Electric vehicle production;
- Renewable energy technologies;
- Advanced defense systems and aviation.
India has huge reserves of its own, the third largest in the world. However, the country still lacks the technology to produce magnets, creating a major gap in its economy.
IREL is not limited to Russia alone. The company is actively studying projects in other regions: Argentina, Australia, and Malawi. The Indian side is also discussing partnerships with Japanese and South Korean firms.
Russia, for its part, is offering more than just metals. Indian state-owned companies SAIL and NMDC are considering the possibility of acquiring Russian coal assets.
What else is worth knowing about Russia's economy
Russia faces a particularly difficult situation in the oil sector. Due to successful Ukrainian drone strikes, many refineries have been damaged, which is now leading to enormous problems in Russia's fuel market.
Currently, every fourth gas station on the aggressor's territory may have imposed limits on gasoline sales.
Just recently, the Armed Forces of Ukraine successfully struck an oil refinery in Moscow. It is located only 15 km from the Kremlin and supplies 35% of the fuel market of the Russian capital.
