Reuters Report: Russia’s Sovereign Wealth Fund Could Partner with U.S. Companies – A Response to a Possible Resource Agreement with Ukraine?
Russia’s sovereign wealth fund plans to develop domestic rare earth deposits and is also seeking partnerships with U.S. companies. According to Reuters, Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), announced this on Tuesday. His statement came almost simultaneously with yesterday’s phone call between U.S. President Donald Trump and Russian President Vladimir Putin regarding a potential end to the war in Ukraine.
In this context, Trump had already proposed a resource agreement with Ukraine weeks ago, which would grant the U.S. access to the war-torn country’s mineral resources. In response, Russia offered the United States access to critical raw materials as well—both within its own territory and in occupied Ukrainian regions.
Russia’s rare earth reserves far exceed those of Ukraine, and additional deposits are under evaluation, Dmitriev reiterated in a press briefing, according to Reuters. Data from the U.S. Geological Survey (USGS) ranks Russia as having the fifth-largest rare earth reserves in the world, though Russian estimates suggest even higher numbers.
According to USGS, Russia’s rare earth production stood at a modest 2,600 tons in 2023, compared to China’s 240,000 tons as the global leader. However, Russia is home to two of the few rare earth refineries outside of China. The country had already announced plans in 2020 to become the leading producer after China. A few months ago, Putin criticized the slow development of the key Tomtor deposit and demanded increased investments (as previously reported).
In contrast, Ukraine has yet to extract or process rare earths, and no modern assessments of its reserves exist. Industry experts have thus questioned the economic feasibility of Trump’s proposed resource deal.
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