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Monday, 24 March 2025

Trump-Putin talk, a geoeconomics play

A three hour tele-talk held between Trump and Putin on Tuesday 18, reveals more than Ukraine it is geoeconomics that mattered. Both are seasoned negotiators. However, both are averse to the use of negotiation as a ploy. Sincere attempt was made to discuss Ukraine and in doing so, US-Russia economic relations. My analysis is here-under:

A moment of great satisfaction arose when both agreed for collaboration in developing resources in Russia which is aplenty and mutually beneficial. All fake stories regarding the US focus on Ukrainian rare earths were just pushed under the carpet. The real truth is there are only few areas in Ukraine where rare earths concentration is economically feasible to mine. On average 80% of the lands containing these resources are within Russia proper or in Donetsk & Lugansk oblast collectively known as Donbass. Two other oblasts boasting high concentration of rare earths are Kharkiv and Zaporizhzhia.

Announcing that his concern in “land & power plants” would be raised with Putin, President Trump gave away the game that he is overly concerned with geoeconomics rather than saving Ukraine. By doing so, if permanent peace prevails in the Eastern front that would be the icing on the cake.

As expected, Putin agreed to a limited ceasefire as regards to the power & energy plants. While Ukraine was rooting for an un-conditional ceasefire both USA & Russia knew that is untenable due to the fact that Kursk operation by Ukraine is still to be called off officially. At the time of writing, Russian forces are still scouting for Ukrainian soldiers and mercenaries trapped therein.

Another geoeconomics point of discussion relates to the handover of Zaporizhzhia nuclear plant the largest in Europe which was captured during early weeks of Russian military operations in 2022 to Ukraine. This plant abuts Dnieper River and Russia would not consent to any type of Ukrainian control of nuclear energy plants for the time being.

Yet another issue relates to geoeconomics. It is the preservation of naval security in the Black Sea. Already Sevastopol and Crimea are under Russian domination. Sporadic drone attacks from Ukraine is a key issue that has to be settled for seamless Black Sea navigation. Trump agrees on this point wholeheartedly. Whether Ukraine attacks or Russia counter attacks it is free navigation in Black Sea regions that has to bear the brunt.

The crux of the matter is, security in Black Sea is vital not only for the littoral states but to America led western countries also.  For America flying Global Hawk over the entire stretch of Black Sea is crucial to tapping movements of shipping vessels on one hand and overseeing all those oil & gas plants located in Azerbaijan in the north-east and Iran in the south-east.

The bottom line is both Russia and America are willing to tango in this vital issue of energy geoeconomics!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 

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