MOSCOW, Russia: Russia’s top oil company, Rosneft, has taken over control of the country’s largest rare earth metals deposit, Tomtor, as shown in a public registry entry dated May 20.

The move follows a call from President Vladimir Putin last year to fast-track development of the strategically important site.

Located in Yakutia, Siberia, Tomtor is central to Russia’s efforts to boost domestic production of rare earth elements—used in everything from electric vehicles to military equipment—and reduce dependence on imports from China. The project’s operator, Vostok Engineering, is now wholly owned by Rosneft, headed by Igor Sechin, a close Putin ally.

Rosneft has not commented on the acquisition.

Putin had publicly criticized delays at the site in late 2023, warning the operator to increase investment or seek support, including from the state.

Russia, which holds the world’s fifth-largest reserves of rare earths, previously announced plans to invest $1.5 billion to become the second-largest global producer of these critical materials by 2030. The United States and other nations are also attempting to diversify their supply chains away from China, which dominates the global market with 95 percent of production.

According to U.S. Geological Survey data, Russia holds 3.8 million metric tons in reserves and hopes to capture up to 12 percent of the global market within the decade.

Before the handover, businessman Alexander Nesis controlled a majority stake in the project through his IST group via ThreeArc Mining. Ownership of the project later transferred to IST’s former manager, Vladislav Resin, following Western sanctions related to Russia’s invasion of Ukraine. It has now passed to Rosneft.