Trump Putin economic agreements: After the Russia-Ukraine war this is difficult to say that investing on Russian markets are worth. It’s hard to taking challenge with seeing so many obstacles, is likely unthinkable but on Monday, US President Donald Trump said he was “trying to do some economic development deals” with Moscow.
There is a high risk for companies to re-invest in Russia while there is a high risk since the invasion Russia losses the deepen economic strength also U.S, EU, Britain and Canada banned Russian banks it will be hard to make financial transaction with western currencies. Russia is a challenging place to do business but America seeks to explore the opportunity particularly in the energy and rare earth metals sectors.
Matthias Warnig, a close associate of President Vladimir Putin is collaborating with U.S. to start a Nord Stream 2 gas pipeline which is a great initiative for President Donald Trump to agreed for the collaboration after the Russia-Ukraine war ends. In sectors, Rare earth material is the main resource for this post-conflict cooperation that strengthen the economic value.
How long this deal lasts?
According to Elina Ribakova, senior fellow at the Peterson Institute for International Economics, based in Washington, DC. Foreign companies can loose their market at any time because “Russia is no longer the obvious place to make a market”. She also said that there is no guarantee their attitude does not change towards America. Maybe “they give the red Carpet to walk now but what happens tomorrow is unpredictable”.
Michael Rochlitz, an associate professor in the economies of Russia, Eastern Europe and Eurasia at Oxford University said that how certain are you with Trump everyday new changes? There is no guarantee for the trade marketing since the Trump has been elected. Investors loosing trust in investment with everyday new erratic policies.
Russia aim to become one of the top five rare earth metals producers
President Vladamir Putin has offered the Trump their rare earth materials which are likely seems to valuable in the future. So, under the future economic deal offer led to the negotiation which happened on the Friday between Ukrainian President Volodymyr Zelenskiy’s and U.S president Donald Trump in order to cut-off the draft mineral deal.
Rare earth material production and supplies are mostly goes under the China which has 95% of the control over the material it is crucial for the companies development point to low domestic demand for the metals these are the barriers for the industry’s development.
If the deals with U.S is continued, Russia will raise with up to 12% of the global market share by 2030, according to its sector development strategy.
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Russia rare earth material reserves are higher
The processing plant handling 8,000 tons of concentrate annually suggests that Russia is still refining its extraction and processing capabilities. Given its vast rare earth reserves (fifth-largest in the world), the country has significant potential, but challenges such as sanctions, technological limitations, and economic hurdles may slow down growth.
If we see current state of Russia earth material rate is 1% of global production, which translates to approximately 2,600 tons per year. It ensures that in some years seems possible to become top 5 country for global trade for rare earth materials.
Summary
While the U.S. government perceives ‘extraordinary economic opportunities’ in Russia, particularly in the energy and rare earth metals sectors, these prospects are tempered by economic challenges and geopolitical complexities.
