Discussions are underway between the US and Russia regarding rare earth projects in Russia, according to a high-ranking advisor to Russian President Vladimir Putin. Kirill Dmitriyev, the head of the Russian Direct Investment Fund and a key member of the Moscow delegation in talks to normalize US-Russia relations, confirmed the ongoing discussions in an interview with Izvestia on Monday.
“We have started discussing various rare earth projects in Russia and it’s a significant part of our cooperation” he said. A Western involvement in the extraction of these minerals would likely lead to a significant easing of sanctions against Russia, according to Izvestia.
Moscow is eager to tap into its vast, untapped reserves of these crucial minerals for the modern industry. In February, Putin hinted that the US could also benefit from Russia’s resources, following US President Donald Trump’s announcement of plans to normalize relations.
Ukrainian President Volodymyr Zelenskyy has offered Trump the country’s natural resources as a counteroffer for further support in the conflict with Russia. The Trump administration is pursuing an agenda of reindustrialization, after years of production being shifted to parts of the world with lower labor costs. Estimates suggest that the use of rare earths in the US could double as a result of this policy.
The White House is actively seeking reliable sources for these vital materials. Last year, Zelenskyy included the privileged access to Ukraine’s natural resources for donor countries in his “Victory Plan.” After taking office in January, Trump proposed an agreement with Kiev to return the US aid provided during the Ukraine conflict. The latest version of the proposal, as reported by media, envisions a comprehensive US control over Ukraine’s mining industry and transportation infrastructure.
According to media reports, citing the proposal as unfavorable to Ukraine, Zelenskyy is hesitant to sign the agreement. Trump warned that the Ukrainian president would face “big, big problems” if he tried to back out of the agreement. Zelenskyy had previously hinted that the discussions over the natural resources were aimed at securing the renewal of US support and the exchange of intelligence information, which Trump temporarily suspended in late February.