Highlights
- Russia’s Rosneft acquires Tomtor, one of the world’s largest rare earth deposits in Siberia.
- Potential alignment with China to control critical mineral supply.
- The acquisition marks a strategic pivot from fossil fuel dominance to mineral-based geopolitical influence.
- Targeting essential minerals for clean energy and defense industries.
- Western nations face urgent challenges in developing domestic rare earth strategies.
- Securing non-aligned mineral supply chains is critical for Western nations.
In a move with sweeping implications for global critical mineral supply chains, Russia’s largest oil producer, state-owned Rosneft PJSC (opens in a new tab), has acquired Vostok Engineering, (opens in a new tab) the license holder of the Tomtor rare earth deposit in Siberia, one of the largest and highest-grade monazite-rich resources in the world. The acquisition, confirmed May 20 via Russia’s national commercial registry and first reported by Bloomberg News, adds a new layer of geopolitical complexity to an already tense global contest over rare earths.
The state-owned Rosneftegaz holding company controls Rosnet PJSC.
The Tomtor deposit in Siberia is considered one of the world’s largest and richest rare earth metal deposits. It’s located in the northern Siberian region of Yakutia. The deposit holds a total of around 154 million tons of ore and is a key project in Russia’s plan to boost domestic production of rare earth metals. See the description via the Russian Government (opens in a new tab).
Tomtor is not just a mine—it’s a strategic asset rich in heavy rare earth elements like dysprosium and terbium, which are vital for permanent magnets used in electric vehicles, wind turbines, missile guidance systems, and naval propulsion. Rosneft’s entry into the rare earths arena marks a clear expansion of Russia’s resource-based geopolitical toolkit. This toolkit already includes oil, gas, uranium, and now a growing presence in the minerals essential to the clean energy and defense industries of the West.
A New Axis of Mineral Leverage–China and Russia
Rosneft’s move is not isolated—it must be viewed in context with China’s dominant role in rare earth processing and export controls, including the April 2025 licensing crackdown on magnet-grade rare earths. If Tomtor production is activated under a China-Russia alignment—formal or informal—two authoritarian regimes could jointly control the majority of global supply and midstream processing of critical heavy rare earths.
Western officials and industry leaders must recognize that Rosneft is not a market actor—it is an arm of the Russian state, and this acquisition signals a potential pivot in strategy: from fossil fuel dominance to mineral-based influence. While some speculate this could become a cooperative venture with the U.S., such optimism is dangerously premature. Russia’s past behavior in energy weaponization, from Nord Stream gas diplomacy to uranium exports, suggests otherwise.
The West’s Strategic Blind Spot
U.S. and European rare earth strategies remain fragmented and underdeveloped despite years of warnings. Stockpiles are minimal, domestic refining capacity is embryonic, and permitting bottlenecks continue to plague new mining projects. As Russia repositions itself from oil to rare earths, the window to secure non-aligned sources is closing fast. Rare Earth Exchanges (REEx) has reported that as early as 2013, the U.S. Congress issued a report warning of the severe vulnerabilities. Little was done.
Rosneft’s acquisition of Tomtor must be a wake-up call. This is not a commercial story—it is a national security flashpoint, and the West must respond with urgency, not inertia. That includes direct investment in allied supply chains, international offtake agreements, and the rapid establishment of refining and magnet manufacturing hubs outside of authoritarian control.
Discuss further at the REEx Forum. (opens in a new tab)
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