A new strategy: Putin wants to strengthen Russia’s position in rare metals
24 February 23:53
At a meeting on the development of the mining industry, Kremlin dictator Vladimir Putin proposed to discuss the prospects for increasing the production of rare and rare earth metals. This is reported by Komersant ukrainskyi with reference to Russian media.
Putin emphasized that rare earth metals are strategically important resources needed for microelectronics, energy and the development of the digital economy.
According to him, global technological progress depends on the efficient use of these materials, and Russia must meet current trends to ensure competitiveness in the global market.
The President of the aggressor country noted that the new national project “New Materials and Chemistry”, which was launched this year, plans not only to increase the production of rare metals, but also to deeply process them with further use in the production of high-tech products. A significant increase in the output of such goods is expected, which should strengthen the country’s position in the field of advanced technologies.
Formation of a full production cycle
At the plenary session of the Future Technologies Forum on February 21, Putin emphasized the need to create a full production cycle: from exploration and development of new deposits to the production of high value-added products. Particular emphasis was placed on the extraction of strategic elements such as lithium, which is widely used in the production of batteries and electronics.
Russia seeks leadership in rare earth metals
Expanding the production of rare metals and introducing modern technologies in this area could become one of the key factors in the development of the Russian economy. According to Putin, the country has every opportunity to take a leading position in this strategically important area and ensure its own technological sovereignty.
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Rare earth metals in Russia
Russia has significant reserves of rare earth metals. The main deposits are located in the Murmansk Oblast, Krasnoyarsk Krai, Yakutia and other regions.
However, despite its rich resources, Russia is currently lagging behind world leaders such as China in the extraction and processing of rare earths.
Agreement between the US and Ukraine on rare earth metals: what is known about it
In February 2025, the United States and Ukraine are actively negotiating an agreement that would give the United States access to Ukraine’s critical minerals, such as rare earth elements, titanium, and lithium. This agreement is seen as a way to compensate for the significant military and financial assistance provided by the United States to Ukraine since the beginning of Russia’s full-scale invasion of Ukraine.
Key aspects of the proposed deal
US share in Ukrainian resources. The preliminary conditions suggest that the United States will receive up to 50% of the revenues from the extraction and sale of Ukrainian minerals and natural resources as compensation for the military support provided earlier. This includes not only rare earth elements, but also other resources such as uranium, oil and gas.
Amount of compensation. The amount discussed is $500 billion, which Ukraine should provide to the United States in the form of revenues from its natural resources. However, Ukrainian President Volodymyr Zelenskyy disputes this figure, claiming that the real amount of aid received is about $100 billion, and insists that grants should not be considered a debt.
Ownership and control. According to the draft agreement, US companies must own a 50% stake in Ukrainian rare earth deposits. In addition, the United States will have the right to revenues even from those territories that Ukraine may liberate from Russian occupation in the future.
Lack of security guarantees. The current terms of the agreement do not provide Ukraine with any security guarantees or further military support from the United States. This is a concern for the Ukrainian side given the ongoing aggression by Russia.
Reaction and current status of negotiations
President of Ukraine Volodymyr Zelenskyy has expressed serious concerns about the proposed terms, stating that he will not sign an agreement that will burden future generations of Ukrainians with significant payments. He emphasized the need for clear security guarantees and fairer financial terms.
Despite the tensions in the negotiations, both sides continue to engage in dialogue. U.S. officials are optimistic that a deal will be reached soon, pointing to a possible visit by President Zelenskyy to Washington to sign the agreement in the coming weeks.
European leaders are already expressing concern about possible concessions from Ukraine in exchange for financial aid, especially in the context of the lack of security guarantees. French President Emmanuel Macron and British Prime Minister Keir Starmer are planning to visit Washington to discuss these issues and express support for Ukraine.
What is known about rare earth metals in Ukraine?
Rare earth metals are a group of 17 chemical elements that include lanthanides, as well as scandium and yttrium. They have unique physical and chemical properties that make them indispensable in many high-tech industries, such as electronics, green energy, medicine, and optics. In particular, rare earth elements are used in the production of smartphones, computers, medical equipment, lasers, and to create strong and lightweight alloys.
Ukraine has significant reserves of rare earth metals and other critical resources. A significant amount of them are currently located in the occupied territories or in areas of active hostilities. According to MiningWorld, the country has unique deposits of beryllium, zirconium, tantalum, and a complex of phosphorus rare earth and rare metal ores. Ukraine’s proven lithium reserves are the largest in Europe. In addition, Ukraine is one of the richest European countries in terms of rare-metal reserves, and the value of these deposits is estimated at up to USD 12 trillion.
Despite its considerable potential, Ukraine has not yet started mining rare earth metals. The country imports about 100 tons of rare earth metals per year.
In total, several hundred points of rare earth metal concentrations have been identified on the territory of Ukraine that require further study. Most of them are located within the Ukrainian Shield, which can be considered the largest rare earth metallogenic province in Europe.
Utilizing this potential can contribute to the country’s economic development and strengthen its position in the global high-tech market.
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Where and how much of these metals are found in Ukraine
According to Forbes (2023), the total value of all mineral resources in Ukraine is up to $15 trillion. More than 70% of this amount is accounted for by minerals in three regions – Donetsk, Dnipro, and Luhansk. Mostly coal, salt, and ore deposits are located there. According to estimates by SecDev, a Canadian geopolitical risk assessment firm , Ukraine has more minerals in 2022, with a total value of $26 trillion (and the energy, metals, and minerals reserves seized by Russia are estimated at nearly $12.5 trillion).
Ukraine also has about 2% of the world’s reserves (500,000 tons) of lithium. Its deposits are located in the Krutaya Balka area in Donetsk region (occupied) and near the village of Shevchenko (also in Donetsk region, Pokrovsk direction, where there are currently fighting).
