Russia wants to divide Ukraine’s subsoil with the US: Putin’s scandalous initiative
25 February 2025 09:53
The leader of the aggressor country, Russia, Vladimir Putin, offers the United States cooperation in the mining of rare earth metals in the occupied territories of Ukraine. This was reported by "Komersant Ukrainian" with reference to Russian media.
According to Putin, Russia is open to cooperation on the development of resources in the occupied Donbas. He emphasized that these territories have significant reserves of strategically important minerals that could be the subject of international partnership.
“We are ready to engage foreign partners, including the Americans, to cooperate in the development of these territories. There are certain reserves of rare earth metals there. We are ready to work with our partners, including the Americans, there,” he said.
At the same time, Putin noted that a potential agreement between the United States and Ukraine on the extraction of rare earth metals has nothing to do with Russia. He emphasized that Moscow is focused on assessing its own reserves of strategic resources.
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Putin emphasized the need for a comprehensive assessment of Ukraine’s rare earth metal reserves, including an analysis of their volume, quality and economic value. He noted that although this task is not a priority for Russia, domestic production of rare earth metals is critical for the development of the modern Russian economy, and work in this area needs to be intensified.
“It is necessary to assess these resources: how real they are, what are their volumes and value. This is an issue that needs to be studied,” he added.
After the temporary seizure of part of Ukraine’s territory, Russia gained control over a significant portion of the country’s mineral resources. According to Russia’s Roskongress, two of the four major lithium deposits are located in the occupied territories, including the Shevchenkivske lithium ore field in Donetsk region and the Kruta Balka deposit in Zaporizhzhia region. The latter is suitable for open-pit mining, which greatly simplifies its development.
In addition, the part of Zaporizhzhia region occupied by Russia is home to titanium sponge production facilities, which were the largest in Ukraine before the war. Seven plants specializing in the production of coke for pig iron smelting also remain in the occupied territories.
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Agreement between the US and Ukraine on rare earth metals: what is known about it
In February 2025, the United States and Ukraine are actively negotiating an agreement that would give the United States access to Ukraine’s critical minerals, such as rare earth elements, titanium, and lithium. This agreement is seen as a way to compensate for the significant military and financial assistance provided by the United States to Ukraine since the beginning of Russia’s full-scale invasion of Ukraine.
Key aspects of the proposed deal
US share in Ukrainian resources. The preliminary conditions suggest that the United States will receive up to 50% of the revenues from the extraction and sale of Ukrainian minerals and natural resources as compensation for the military support provided earlier. This includes not only rare earth elements, but also other resources such as uranium, oil and gas.
Amount of compensation. The amount discussed is $500 billion, which Ukraine should provide to the United States in the form of revenues from its natural resources. However, Ukrainian President Volodymyr Zelenskyy disputes this figure, claiming that the real amount of aid received is about $100 billion, and insists that grants should not be considered a debt.
Ownership and control. According to the draft agreement, US companies must own a 50% stake in Ukrainian rare earth deposits. In addition, the United States will have the right to revenues even from those territories that Ukraine may liberate from Russian occupation in the future.
Lack of security guarantees. The current terms of the agreement do not provide Ukraine with any security guarantees or further military support from the United States. This is a concern for the Ukrainian side given the ongoing aggression by Russia.
Reaction and current status of negotiations
President of Ukraine Volodymyr Zelenskyy has expressed serious concerns about the proposed terms, stating that he will not sign an agreement that will burden future generations of Ukrainians with significant payments. He emphasized the need for clear security guarantees and fairer financial terms.
Despite the tensions in the negotiations, both sides continue to engage in dialogue. U.S. officials are optimistic that a deal will be reached soon, pointing to a possible visit by President Zelenskyy to Washington to sign the agreement in the coming weeks.
European leaders are already expressing concern about possible concessions from Ukraine in exchange for financial aid, especially in the context of the lack of security guarantees. French President Emmanuel Macron and British Prime Minister Keir Starmer are planning to visit Washington to discuss these issues and express support for Ukraine.
What is known about rare earth metals in Ukraine?
Rare earth metals are a group of 17 chemical elements that include lanthanides, as well as scandium and yttrium. They have unique physical and chemical properties that make them indispensable in many high-tech industries, such as electronics, green energy, medicine, and optics. In particular, rare earth elements are used in the production of smartphones, computers, medical equipment, lasers, and to create strong and lightweight alloys.
Ukraine has significant reserves of rare earth metals and other critical resources. A significant amount of them are currently located in the occupied territories or in areas of active hostilities. According to MiningWorld, the country has unique deposits of beryllium, zirconium, tantalum, and a complex of phosphorus rare earth and rare metal ores. Ukraine’s proven lithium reserves are the largest in Europe. In addition, Ukraine is one of the richest European countries in terms of rare-metal reserves, and the value of these deposits is estimated at up to USD 12 trillion.
Despite its considerable potential, Ukraine has not yet started mining rare earth metals. The country imports about 100 tons of rare earth metals per year.
In total, several hundred points of rare earth metal concentrations have been identified on the territory of Ukraine that require further study. Most of them are located within the Ukrainian Shield, which can be considered the largest rare earth metallogenic province in Europe.
Utilizing this potential can contribute to the country’s economic development and strengthen its position in the global high-tech market.
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Where and how much of these metals are found in Ukraine
According to Forbes (2023), the total value of all mineral resources in Ukraine is up to $15 trillion. More than 70% of this amount is accounted for by minerals in three regions – Donetsk, Dnipro, and Luhansk. Mostly coal, salt, and ore deposits are located there. According to estimates by SecDev, a Canadian geopolitical risk assessment firm , Ukraine has more minerals in 2022, with a total value of $26 trillion (and the energy, metals, and minerals reserves seized by Russia are estimated at nearly $12.5 trillion).
Ukraine also has about 2% of the world’s reserves (500,000 tons) of lithium. Its deposits are located in the Krutaya Balka area in Donetsk region (occupied) and near the village of Shevchenko (also in Donetsk region, Pokrovsk direction, where there are currently fighting).
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