INSUBCONTINENT EXCLUSIVE:
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 U.S.-Russian rapprochement, the economic rationale for such cooperation does not look
particularly strong.Russia-U.S
economic ties were already limited before the invasion of Ukraine, and the two countries remain rivals in trade with China and Europe.What
projects are on the Russia-U.S
possible negotiations to end the Ukraine war.In its latest move, President Vladimir Putin proposed joint projects on rare earth elements and
high-level meeting in Saudi Arabia on Feb
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 U.S
did not send economic officials to the talks in Riyadh, U.S
Treasury Secretary Scott Bessent later indicated that sanctions relief could be considered once a Ukraine peace deal is reached.What is the
state of U.S.-Russian economic relations?Trade relations between Russia and the U.S
are nearly nonexistent, with U.S
exports to Russia totaling only about $500 million in 2024, while Russian exports to the U.S
reached $3 billion.For comparison, in the pre-war year of 2021, these figures stood at $6.4 billion and $29.6 billion, respectively,
Census Bureau.By contrast, in 2024, the U.S
exported $370.2 billion worth of goods to the EU and imported $605.8 billion from Europe.Russian-U.S
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 U.S
was the largest investor in Russia
American companies that once operated in Russia, U.S
Ozon.However, this is a small fraction of the estimated $6 trillion in total U.S
Meanwhile, Russian investment in the U.S
seeking favorable access to the Russian market, it is unlikely to be a game changer for the U.S
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 U.S
However, developing rare earth deposits requires significant capital, and the likelihood of the U.S
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 U.S
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 complementary.Notably, both are major energy
cooperation, the two countries are developing competing shipping routes, Hess noted.Russia aims to transport more LNG via the Northern Sea
Route, which connects Europe and Asia, while the U.S
is prioritizing the Northwest Passage, which connects the Atlantic and Pacific oceans through the Canadian Arctic.In theory, Washington
