KEY POINTS
- Putin says Russia is ready to work with the US on energy and rare earth minerals.
- Trump confirms “serious discussions” with Russia on Ukraine’s war and economic cooperation.
- Putin says Russia has far greater rare metal reserves than Ukraine.
- Russian envoy says energy cooperation with the US is key for global economic stability.
- Trump pushes for a deal granting US firms access to half of Ukraine’s mineral wealth.
MOSCOW: Russian President Vladimir Putin has said that Moscow was ready to collaborate with the United States on energy and rare earth mineral mining in both Russia and Russian-controlled areas of Ukraine, as part of broader economic cooperation efforts.
Putin’s remarks follow US President Donald Trump’s statement on Monday that he was engaged in “serious discussions” with Russia on ending the war in Ukraine and exploring economic development opportunities, including projects linked to Russia’s vast rare earth reserves.
“I want to stress that we certainly have much more of such resources than Ukraine,” Putin said in an interview with Russian state media.
“Russia is one of the leading countries when it comes to rare metal reserves. By the way, as for new territories, we are also ready to attract foreign partners – there are certain reserves there too.”
Meanwhile, Putin’s special envoy for investment and economic cooperation with foreign countries, Kirill Dmitriev, told CNN that Moscow was open to economic collaboration with Washington, particularly in energy.
Dmitriev, who attended the talks with US officials in Saudi Arabia last week, said such cooperation was vital for global economic stability.
“Russia is open to US-Russia economic cooperation and believes such cooperation is key for a more resilient global economy,” Dmitriev stated. He indicated that the first stage of potential collaboration would involve energy.
US eyes Ukraine’s mineral resources
Trump’s comments also come as Washington negotiates with Kyiv over access to Ukraine’s mineral resources. The US president is pushing for Ukraine to grant American companies rights to half of its mineral wealth in exchange for military aid.
“I emphasised the importance of the vital ‘Critical Minerals and Rare-Earths Deal’ between the United States and Ukraine, which we hope will be signed very soon!” Trump wrote on his Truth Social platform.
“This deal, which is an ‘Economic Partnership,’ will ensure the American people recoup the tens of billions of dollars and military equipment sent to Ukraine, while also helping Ukraine’s economy grow as this war comes to an end.”
Trump’s diplomatic efforts have raised concerns among European allies, who fear being sidelined in negotiations over Ukraine’s future. His administration’s push for direct talks with Russia, while blaming Ukraine for the war, is seen as a significant policy shift.
ALSO READ: Macron to Brief European Leaders on his Talks with Trump on Ukraine
During a joint press conference with French President Emmanuel Macron at the White House, Trump defended his approach, stating: “I’ve spoken to President Putin, and my people are dealing with him constantly… They want to do something. I really believe that he wants to make a deal.”
Economic relief for Russia
Russia’s economy is facing mounting challenges, with high inflation, soaring interest rates, and extensive Western sanctions straining growth. While government spending on defence has supported economic activity, analysts warn that continued military expenditures could lead to stagflation.
ALSO READ: Trump-Putin Discussing Major Economic Deals Besides Ending Ukraine War
Oleg Vyugin, former deputy chairman of Russia’s central bank, told Reuters that Moscow faces a tough choice: either continue military spending at the cost of long-term economic stability or pursue a diplomatic resolution.
“For economic reasons, Russia is interested in negotiating a diplomatic end to the conflict,” Vyugin said. “(This) will avoid further increasing the redistribution of limited resources for unproductive purposes. It’s the only way to avoid stagflation.”
Meanwhile, Alexander Kolyandr, a researcher at the Centre for European Policy Analysis (CEPA), suggested that peace talks could help ease inflation pressures and pave the way for sanctions relief, particularly by discouraging the US from enforcing secondary sanctions on Russia’s trading partners.
Recent market movements suggest optimism in Russia’s financial sector. The rouble surged to a near six-month high against the dollar on Friday, buoyed by expectations of a diplomatic resolution and potential sanctions relief.
Meanwhile, Washington’s European allies are scrambling to adjust to the shift in US policy, while Ukraine has stated that it seeks security guarantees before agreeing to any settlement.
