Rare Earth Minerals in the Maelstrom of Ukraine, US and Russia Conflict

MOSCOW, TUESDAY — Russia has offered rare earth metal minerals to the United States (US). This comes as Ukraine continues to delay agreeing to the valuable mineral trade agreement proposed by Washington.

The Kremlin stated that Russia possesses abundant deposits of rare earth metals needed by the United States. Russia is also open to establishing agreements and cooperation with the United States regarding these valuable minerals.

"America needs rare earth metals. We have plenty of those metals," said Kremlin spokesperson Dmitry Peskov in Moscow, Russia, Tuesday (25/2/2025).

According to Peskov, Russia actually has its own plans to develop those strategic resources. However, there are quite broad prospects for cooperation in that sector.

A day earlier, Russian President Vladimir Putin extended an offer to the US for cooperation in the exploration of rare earth metal deposits in Russia. He also opened the possibility of an agreement to supply aluminum to the US domestic market, based on future economic agreements.

Ahead of Putin's remarks, US President Donald Trump said that major economic development deals with Russia would take place.

Within two hours of Trump's remarks, Putin held a meeting with his ministers and economic advisers on rare earth metals.

According to Peskov, there is still much work to be done to normalize relations between Moscow and Washington before any economic deal can be reached. First of all, resolving the Ukraine crisis is a priority.

“And then, especially since the Americans themselves have also spoken about it, it is time to consider possible projects related to trade, economic and investment cooperation,” Peskov said.

Rare earths are a group of 17 metals used to make magnets that convert energy into motion. They are vital to today's technology, from electric vehicles to cell phones to missile systems and other electronics.

According to US Geological Survey data, Russia has the world's fifth largest reserves of rare earth metals after China, Brazil, India and Australia.

Moreover, Russia has occupied areas in eastern and southern Ukraine that have large reserves of lithium and other minerals. Lithium is a key material for making electric batteries.

Peskov said Russia is ready to make a rare earth deal with the US, when the time comes for political will.

To say that we trust America, we have to make a serious journey. (Dmitry Peskov)

However, Peskov warned that Russia still needs time to rebuild its relations with the US, as the US has imposed heavy economic sanctions on Russia since the Ukraine conflict began.

“To say that we trust America, we have to go on a serious journey. We have to take many small steps towards each other, which will facilitate the restoration of trust. Much has been broken. It cannot be restored overnight,” he said.

Russia's offer comes as Ukraine remains reluctant to agree to a rare earth metals deal with Washington. Nearly two weeks have passed and Kyiv has yet to agree to the deal proposed by Washington.

Washington’s offer would give the US access to Ukraine’s critical minerals, which it says are Ukraine’s payment for the aid Washington has provided to Kyiv since the start of the war in 2022. Trump says it is worth more than $180 billion in goods.

Meanwhile, Ukraine is still holding back on agreeing to the agreement because it is still asking for security guarantees for the agreement with the US.

Ukrainian President Volodymyr Zelenskyy was initially upset by Washington's offer, saying the deal did not provide enough security guarantees for Ukraine.

According to Zelenskyy, his party is still negotiating the offer for the final stage with the US. "We made great progress. But, we want a better economic agreement that will be part of a genuine security guarantee system for Ukraine," Zelenskyy said in his post on social media X, Sunday (23/2/2025).

On Monday, Putin said the U.S.-Ukraine negotiations were not a problem for Russia. The same day, Trump said he hoped the U.S. and Ukraine would soon reach a deal on rare earth minerals.

Trump said Zelenskyy is expected to visit Washington this week or next to sign the deal. In Kyiv, Ukraine said details of the deal with the U.S. on the precious minerals were being finalized.

"The Ukrainian and US teams are in the final stages of negotiations on the mineral agreement. The negotiations have been very constructive, with almost all the main details having been worked out," Ukrainian Deputy Prime Minister Olga Stefanishyna said on X.

Zelenskyy said he wanted concrete security guarantees from the US in return for giving Washington access to his country's vital resources.

"We are committed to resolving this quickly to proceed with the signing," Stefanishyna added in her post.

He hopes Trump and Zelenskyy will sign an agreement in Washington to show a binding commitment for decades to come.

Trump did not say whether the deal would include US security guarantees, however, after meeting with Group of Seven (G7) leaders for a virtual session on the third anniversary of Russia's invasion of Ukraine.

Trump was joined by French President Emmanuel Macron at the White House for the meeting. The two held bilateral talks to discuss the situation in Ukraine.

The talks come amid uncertainty over the future of transatlantic relations. Trump has upended US foreign policy, abandoning Europe and courting Russia to end the war in Ukraine.

"We need to have guarantees for a solid peace," Macron said at the start of his bilateral meeting with Trump. "This is also a very important moment for Europe," he added.

Macron came to persuade Trump to side with Ukraine. The talks with Macron came after Trump rocked Europe with his barrage of criticism of Zelenskyy.

(AP/AFP/Reuters)