US President Donald Trump is planning to propose a series of economic incentives during his meeting with Russian leader Vladimir Putin on 15 August, including access to Alaska’s natural resources and the partial lifting of sanctions on Russia’s aircraft industry, in exchange for ending the war against Ukraine.
Source: The Telegraph
Details: The Telegraph reported that among the proposals Trump may present to Putin in Anchorage are granting Russia access to Alaska’s natural resources, lifting some sanctions on Russia’s aircraft industry and giving Putin access to rare earth minerals in Ukrainian territories currently under Russian occupation.
The US Treasury Secretary Scott Bessent is working on preparations for these economic concessions. He is exploring the possibility of creating new mining ventures in cooperation with Russia to speed up the development of Ukrainian deposits.
It is believed that Ukraine holds 10% of the world’s lithium reserves, used in battery production. Two of the largest lithium deposits are in areas controlled by Russia and Putin has laid claim to the valuable minerals extracted there.
“There are a range of incentives, in which a potential mineral/rare earth deal could be one,” a source familiar with the proposals told The Telegraph.
Other incentives include lifting the ban on exporting spare parts and equipment needed to service Russian aircraft, a significant proportion of which are in a poor state of repair.
Since the beginning of Russia’s full-scale invasion of Ukraine in 2022, the West has restricted the supply of critical components, leading to the deterioration of much of the aircraft fleet. Sergei Chemezov, CEO of the Russian state-owned defence conglomerate Rostec, said up to 30% of Western-made aircraft in Russia could be taken out of service within five years.
Quote: “Lifting sanctions on Russian aircraft could prove lucrative for the American manufacturer Boeing. With a fleet of more than 700 planes dominated by Airbus and Boeing, Russian airlines could return to the American suppliers for critical parts and maintenance.”
Details: Trump is also considering giving Russia access to natural resources in the Bering Strait, where there are thought to be significant untapped reserves of oil and gas.
Sources in the UK government told The Telegraph that such incentives might be acceptable to Europe if they did not appear to reward Russia.
Quote: “Israel’s occupation of the West Bank could be used as a model for ending the war. Russia would have military and economic control of occupied [parts of] Ukraine under its own governing body, similar to Israel’s de facto rule of Palestinian territory.
The idea was raised in discussions between Steve Witkoff, Mr Trump’s special envoy and his Russian counterparts.”