Putin instructs development of a roadmap for extracting rare earth materials in Russia by December.
As the global demand for rare-earth minerals surges due to their critical role in advanced technologies, Russia is positioning itself to capitalize on its vast untapped reserves. President Vladimir Putin has mandated his cabinet to create a roadmap for the extraction of these valuable resources, reflecting the country’s strategic push to strengthen its position in the global market amidst shifting geopolitical landscapes.
Russian President Vladimir Putin has directed his cabinet to craft a detailed roadmap for the extraction of rare-earth minerals by December 1, 2021, highlighting Russia’s strategic positioning amid rising global interest in these resources, which are vital for modern technology. Published on the Kremlin’s website, the list of tasks also emphasizes the need to enhance transportation links at Russia’s borders with China and North Korea, underscoring the deepening economic ties between Russia and these countries.
Rare-earth elements, essential components in smartphones, electric vehicles, and weapons systems, have gained significant strategic importance in international trade dynamics. In a notable move, in April 2021, former U.S. President Donald Trump signed an agreement with Ukrainian President Volodymyr Zelenskyy that granted the U.S. preferential access to emerging Ukrainian mineral deals, further fueling competition in the minerals sector.
Amid these developments, Russia has expressed interest in collaborating with the United States on rare-earth projects. In March, Kirill Dmitriev, Putin’s investment envoy, indicated that discussions had commenced regarding potential partnerships in this sector, with several U.S. companies showing interest. However, progress in these talks remains hindered by ongoing geopolitical tensions, particularly regarding the conflict in Ukraine.
China, which currently dominates the global production of rare earths, has retaliated against U.S. tariffs by implementing restrictions on its exports of these critical materials. This situation has prompted Washington to accelerate efforts to develop its own sources of supply. While the U.S. Geological Survey estimates that Russia possesses approximately 3.8 million tonnes of rare-earth metals, the Russian government claims its reserves are significantly higher, amounting to 28.7 million tonnes across 15 different rare-earth metals as of January 2023.
Putin’s directives, which stemmed from discussions held during the Far Eastern Economic Forum in Vladivostok, also include the establishment of multimodal transport and logistics centers at key border points with China and North Korea. This initiative encompasses the utilization of existing railway infrastructure between Russia and China, alongside plans for a new bridge to North Korea, projected to be operational by 2026. Enhanced economic cooperation with these neighboring countries has intensified following the imposition of Western sanctions on Russia due to the ongoing conflict in Ukraine, shaping a new landscape for trade and resource extraction in the region.
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