Putin Offers U.S. Rare Earth Deals in Russian-Occupied Ukraine, Proposes 50% Defense Budget Cut

U.S. firms could mine rare earths in Russian-controlled Ukraine under a proposal from President Vladimir Putin, who also suggested cutting U.S. and Russian defense budgets by 50%.

Russian President Vladimir Putin on Monday invited American companies to invest in rare earth mining in Russian-occupied Ukraine and aluminum production in Siberia, emphasizing potential business deals during an interview with Russian state television.

Putin said Moscow "could invite American companies" to develop aluminum reserves in Siberia's Krasnoyarsk region, valuing the initiative at $15 billion. The U.S., which imports about half of its aluminum—mainly from Canada—relies on the metal for industries like aerospace and consumer electronics. Russia is one of the world's top four aluminum producers.

The Russian military claimed control of a lithium deposit in Shevchenko, Donetsk, last month. Pro-invasion Russian bloggers called the battery material "strategically important" for Europe and the U.S., suggesting Moscow could use it as bargaining chip in war negotiations.

Putin stated that Russia possesses significantly larger rare earth metal reserves than Ukraine and is "ready to work with our foreign partners, including the Americans," to develop these resources. This invitation extends to areas under Russian control in eastern Ukraine, including Donbas and Novorossiya.

The remarks follow recent shifts in U.S. foreign policy under former President Donald Trump, who has pushed for a U.S. share in Ukraine’s rare earth revenues. Putin’s comments appeared aimed at aligning with Trump’s focus on business opportunities, further highlighting Russia’s willingness to negotiate economic cooperation despite ongoing conflict.

During the interview, Putin proposed a 50% reduction in defense budgets for both Russia and the U.S., with an option for China to join. He described the idea as "good" and expressed openness to discussions. The proposal aligns with Trump’s previous calls for lowering military spending among major powers.

Putin also claimed that Ukrainian President Volodymyr Zelensky would lose any election against General Valery Zaluzhny, Ukraine’s former military commander. While polls indicate Zaluzhny’s rising popularity, Putin’s comments marked a rare acknowledgment of a Ukrainian official by name.

Despite these offers, Putin signaled no urgency to resolve the Ukraine conflict, saying that the topic was only briefly mentioned in a recent call with Trump and meetings between U.S. and Russian officials in Saudi Arabia. Meanwhile, Russian forces continue to advance in Ukraine while Kyiv faces challenges related to personnel and future American support.

Putin criticized Zelensky’s decree banning negotiations with Moscow and accused European Union leaders of being too aligned with Kyiv to engage in meaningful peace talks. However, he said Russia is open to EU participation in future negotiations but insisted that other countries, including those from the BRICS bloc, should also have a say.