Reuters: Russia hands over largest rare earth deposit to businessman close to Putin
Photo: ERA

Russia's largest oil company Rosneft has gained full control of Tomtor, the country's largest rare earth deposit, Reuters reports, citing data from the official register of legal entities in the Russian Federation.

Tomtor, located in the northern Siberian region of Yakutia, is a key project in Russia's plans to increase rare earth metal production.

These resources are widely used in the defense industry, as well as in the production of smartphones and electric vehicles.

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Russia is seeking to reduce its dependence on imports from China, which currently controls about 95% of the global rare earth metals market.

On May 20, Rosneft, headed by Igor Sechin, a longtime ally of Russian President Vladimir Putin, gained full control over the project operator, Vostok Engineering.

Putin has previously publicly criticized delays in the development of Tomtor, calling for either increased investment or state aid.

Before the full-scale war in Ukraine, Russia planned to invest $1.5 billion in the extraction of rare earth metals and by 2030 become the second largest producer of these resources after China.

According to the US Geological Survey, Russia has the fifth largest reserves of rare earth metals in the world — about 3.8 million tons, second only to China, Brazil, India, and Australia.

In its new strategy, Russia aims to capture up to 12% of the global rare earth metals market by 2030.

Until recently, the project was operated by ThreeArc Mining, 75% of which was owned by businessman Oleksandr Nesis through his IST group. Polymetal also had a stake in the company (9.1%).

After the start of the full-scale war in Ukraine and the introduction of Western sanctions, the ownership structure changed, and control over the project passed to former IST manager Vladislav Resin.

  • On February 24, 2025, Trump announced that the US wanted to make deals with Russia on resources, but first the war needed to end.
  • On the same day, Russian dictator Putin said that Moscow would be ready to offer Washington the opportunity to work together in the field of rare earth metals.
  • On February 26, NBC wrote that Russia had offered the United States a deal regarding minerals in the occupied territories of Ukraine.