INSUBCONTINENT EXCLUSIVE:
Russia and the United States have been discussing resuming their economic cooperation, with Moscow touting potential joint projects in
metals, rare earth mining and Arctic development.However, despite the latest United States -Russian rapprochement, the economic rationale
for such cooperation does not look particularly strong.Russia-United States economic ties were already limited before the invasion of
negotiations to end the Ukraine war.In its latest move, President Vladimir Putin proposed joint projects on rare earth elements and
focus is also evident in its choice of representatives for official talks with the United States At a high-level meeting in Saudi Arabia on
18, the Russian delegation included Kirill Dmitriev, a Kyiv-born, Harvard-educated economist who heads the Russian Direct Investment Fund
and Elon Musk with promises of lucrative economic deals.While the United States did not send economic officials to the talks in Riyadh,
United States Treasury Secretary Scott Bessent later indicated that sanctions relief could be considered once a Ukraine peace deal is
reached.What is the state of United States -Russian economic relations?Trade relations between Russia and the United States are nearly
nonexistent, with United States exports to Russia totaling only about $500 million in 2024, while Russian exports to the United States
reached $3 billion.For comparison, in the pre-war year of 2021, these figures stood at $6.4 billion and $29.6 billion, respectively,
according to the United States Census Bureau.By contrast, in 2024, the United States exported $370.2 billion worth of goods to the EU and
once carried significant weight.Calculating the exact volume of direct investment is notoriously difficult, as investments are often routed
through intermediary countries with favorable tax regimes, such as the Netherlands or Cyprus
This practice makes it appear as though these nations are major investors in non-EU countries like Russia and Georgia.A study by the UN
Conference on Trade and Development (UNCTAD), which adjusted for these distortions, found that the United States was the largest investor
American companies that once operated in Russia, United States investors previously held stakes in leading Russian firms, including IT
United States investments worldwide
rapprochement could benefit select American businesses seeking favorable access to the Russian market, it is unlikely to be a game changer
military applications, including the production of its flagship F-35 fighter jet
from China.Russia ranks among the top five countries in estimated rare earth reserves, but harsh climate conditions make extraction costly,
limiting its share of global production to just 2%.Moscow would certainly benefit from long-term investment by a major partner like the
United States However, developing rare earth deposits requires significant capital, and the likelihood of the United States committing to
Russia can form an economic partnership with the United States to shape global economic rules or complement each other in international
trade.But that scenario does not sound particularly realistic, either.First, Russia is still a developing country focused on luring foreign
investors, promoting its own exports and boosting domestic production of high-value-added goods, such as cars and IT equipment.This agenda
is also accompanied by providing favors to Russian domestic producers and relaxing intellectual property rules
None of this aligns with United States priorities, which include safeguarding its dominant position in the technology sector, protecting
intellectual property rights and bringing major manufacturers back to American soil.Second, the Russian and American economies are hardly
during his first administration, Trump pushed for Europe to buy more American liquefied natural gas (LNG), which finally happened after
routes, Hess noted.Russia aims to transport more LNG via the Northern Sea Route, which connects Europe and Asia, while the United States is
prioritizing the Northwest Passage, which connects the Atlantic and Pacific oceans through the Canadian Arctic.In theory, Washington could
