Putin Offers Russian Aluminum, Rare Earths As An Alternative To Ukraine's Minerals

Russian President Vladimir Putin has offered the United States access to Russia's metals, presenting Moscow as an alternative to Washington's push for Ukraine's resources.

If President Donald Trump successfully brokers the agreement to stop the three-year conflict in Ukraine, it could open the doors for renewed economic cooperation.

Trump's notion of securing major economic agreements with Russia, as mentioned by Al Jazeera, drew a prompt reaction. Putin convened a high-level meeting with economic advisors, reflecting on opportunities with joint projects in strategic metals.

"We, by the way, would be ready to offer joint projects with our American partners," Putin stated on Russian state television, clarifying that Russia possesses far greater reserves of these critical minerals than Ukraine.

Russia holds the world's fifth-largest rare earth reserves, estimated at 3.8 million metric tons, yet it produces only about 2,500 tons per year due to limited refining capacity. These materials are essential for electric vehicles, missile guidance systems, consumer electronics, and renewable energy technologies.

Putin described rare earth metals as a priority for Russia's long-term economic development, with plans to expand beyond raw extraction into high-tech manufacturing. He also noted a significant opportunity for aluminum exports.

Russia is one of the world's largest aluminum producers, with its leading company, Rusal, historically supplying a significant share of global markets. Before tariffs were imposed in 2023, Russia accounted for up to 15% of U.S. aluminum imports.

Putin now says that Russia could supply up to 2 million tons annually to the U.S., helping to stabilize prices in the American market.

"This will not significantly affect pricing, but it will have a restraining influence on price formation," Putin said. He also proposed that American firms could invest in Russian aluminum production, particularly in the Krasnoyarsk region of Siberia, which houses some of the world's largest aluminum facilities.

While Putin angles for American cooperation, the European Union has taken a stricter approach, tightening restrictions on Russian aluminum as part of its latest, 16th sanctions package. New rules will further limit Russia's presence in European markets, explaining why Moscow seeks alternative buyers.

Alongside his economic proposals, Putin endorsed Trump's suggestion for a 50% reduction in defense spending for Russia and the United States and openly invited China to join the initiative.

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