Putin orders rare-earth metals push amid China concerns, US-Ukraine deal
What's the story
In a strategic move, Russia has announced plans to ramp up its production of rare-earth metals. The initiative is aimed at reducing the country's dependence on China for these critical resources. Russian President Vladimir Putin made the announcement during his address at the Eastern Economic Forum in Vladivostok on Friday.
Strategic resources
Rare-earth metals crucial for various sectors
Rare-earth metals are crucial for a wide range of technologies, including lasers, computer chips, electric vehicles, and military equipment. Russia, which has the world's fifth-largest reserves of these metals, is now looking to boost production in this sector. Putin has directed his government to come up with a development program by November to achieve this goal.
Geopolitical shift
US-Ukraine economic investment deal
Putin's announcement comes just months after the US and Ukraine signed an economic investment deal. The agreement gives Washington access to Ukrainian minerals in exchange for financial or military support. Under the pact, Ukraine will pay half of its royalties from future oil, gas, and mineral extraction licenses to the US. This deal may have influenced Russia's decision to ramp up its rare-earth metal production. The US-Ukraine deal includes 55 minerals under this pact, including rare-earth elements.