The Russian president proposes joint efforts with the US in hydropower generation and aluminium production in the Krasnoyarsk region in Siberia.

Wedoany.com Report-Feb 26, In a recent development, Russian President Vladimir Putin has proposed a potential economic deal with the US that includes joint exploration of Russia’s rare earth metals deposits and the supply of aluminum to the US market. This offer follows US President Donald Trump’s announcement of upcoming “major economic development transactions with Russia.”

During a state TV broadcast following a meeting with ministers and economic advisers, Putin expressed Russia’s readiness to engage in joint projects with US partners, including both governmental structures and companies. He highlighted Russia’s significant resources of rare earth metals, stating that they exceed those of Ukraine, which is also in talks with the US over a similar deal.

Russia is estimated to hold the world’s fifth-largest reserves of rare earth metals (3.8 million tonnes) according to US Geological Survey (USGS) data. Despite these vast reserves, Russia currently mines only 2,500 tonnes of concentrate annually and lacks the processing capacity to fully utilize its resources.

Putin mentioned the possibility of Russian companies supplying up to 2 million tonnes of aluminum to the US market annually, provided that prohibitive duties introduced in 2023 are lifted. He suggested that this supply would not significantly affect price formation but could have a restraining influence on prices.

The Russian President also proposed joint efforts in hydropower generation and aluminum production in the Krasnoyarsk region in Siberia, the base for Russia’s largest aluminium producer, Rusal. He estimated that the potential investment in this project could reach $15 billion. Putin noted that some Russian and US companies are already in contact regarding joint ventures in the energy sector, although he did not provide further details.

Emphasizing the importance of rare earth metals for Russia’s economic development and competitiveness, Putin stated that the government aims to increase the output of high-technology goods several times over as a result of national projects.

This proposed deal could significantly impact the global rare earth metals market, offering new opportunities for collaboration between Russia and the US. As both nations seek to leverage their resources for economic growth and technological advancement, this agreement could pave the way for a new era of joint ventures and shared prosperity.