U.S. Senator Steve Daines chaired a Senate Foreign Relations Committee hearing on July 16, pressing for reduced American reliance on Russian minerals and urging stronger economic ties with Central Asia.
The Montana Republican questioned Deputy Secretary of State for Management and Resources Michael Rigas during the session, which focused on critical supply chain vulnerabilities and outdated trade barriers.
Daines highlighted the threat posed by Russian palladium dumping to American industries and workers, particularly those at Montana’s Stillwater mine — the only primary producer of palladium and platinum in the U.S. alongside Russia and South Africa.
“The Russians have flooded the market with palladium, driving down prices and forcing Montana’s Stillwater mine to lay off around 700 hardworking employees,” said Daines. “If we don’t take action, the mine and the important jobs it supplies will be permanently lost, and American supply chains will be all that much more vulnerable.”
He warned that Russia’s price manipulation not only threatens American jobs, but also indirectly funds its war against Ukraine.
In response, Rigas emphasized the administration’s broader commitment to onshoring critical supply chains and streamlining permitting processes to accelerate domestic production.
“The president has talked about how we need to onshore critical supply chains for national security purposes,” Rigas said. “He wants to streamline permitting so that things that used to take years can be done in weeks or months.”
Turning to Central Asia, Daines called for the repeal of Cold War-era Jackson-Vanik trade restrictions, which he argued hamper U.S. economic engagement in a resource-rich but geopolitically sensitive region.
“I visited all five of the presidents in those respective five Central Asian countries in the last 14 months, and they want to work with the United States,” Daines noted. “These outdated trade restrictions prevent permanent investment and have become a major hindrance to strengthening ties.”
He urged bipartisan support for lifting the restrictions and asked for the State Department’s commitment to engage on the issue. Rigas confirmed his willingness to collaborate with Congress to support updated trade frameworks.
U.S. Moves to Repeal Jackson-Vanik to Boost Central Asia Trade
The Jackson-Vanik amendment, enacted in 1974 during the Cold War, was designed to restrict trade with countries—mainly in the Soviet bloc—that limited emigration rights, particularly for Soviet Jews. It remains in effect for Central Asian countries like Kazakhstan, Uzbekistan, and Tajikistan, despite changes in their political and human rights landscapes.
Since the collapse of the Soviet Union, successive U.S. administrations have certified that all three nations meet the amendment’s emigration requirements. These countries maintain positive ties with Israel, do not engage in antisemitic policies, and allow Jewish citizens to emigrate freely.
Under Biden, the administration expressed support for repealing the Jackson-Vanik amendment for Kazakhstan, Uzbekistan, and Tajikistan. Officials argued that eliminating the Cold War-era restriction would demonstrate the U.S. commitment to deeper economic cooperation, especially as these countries sought to reduce dependence on Russia.
Supporters said the move would expand trade and investment opportunities for American businesses. Representative Jimmy Panetta described the amendment as an “outdated relic” that had stood in the way of stronger U.S. partnerships in the region.
“Repealing this amendment strengthened our relationship with Kazakhstan, opened trade in critical minerals, and improved the U.S. competitive position in Central Asia,” Panetta said.
Uzbekistan Emerges as Strategic Hub for Rare Earth Mineral Development
As global demand for critical minerals intensifies, Uzbekistan is positioning itself as a key player in the global supply chain. With confirmed mineral reserves valued at $970bn and total estimated potential exceeding $3.5 trillion as of January 2025, the country boasts over 100 types of minerals—60 of which are actively mined. Uzbekistan ranks among the top ten globally for reserves of gold, uranium, and copper, and is especially rich in rare earths like tungsten, molybdenum, and lithium.
To unlock this potential, Uzbekistan has partnered with several global powers to develop its rare earth and critical mineral sectors:
- Germany: On September 16, 2024, President Shavkat Mirziyoyev and German Chancellor Olaf Scholz signed a strategic partnership to expand German investment in mineral exploration and processing in Uzbekistan, with a focus on value-added production and exports.
- United States: The same day, the U.S. and Uzbekistan signed an MoU to boost cooperation in the critical minerals sector and support the global clean energy transition. The agreement promotes investment in key minerals such as lithium, vanadium, and uranium, with U.S. Ambassador Jonathan Henick highlighting the importance of building secure, resilient supply chains.
- European Union: In April 2024, the EU signed an MoU with Uzbekistan aimed at integrating critical raw material (CRM) value chains and ensuring sustainable, responsible mining practices. The agreement also supports research, innovation, and funding mobilization for the green and digital transitions.
- South Korea: A bilateral initiative between Uzbekistan and South Korea focuses on refining rare earth metals like tungsten and molybdenum domestically. South Korea has committed $12mn in technical support, while Uzbekistan works to move up the value chain and train local engineers in sustainable extraction methods.
These international agreements align with Uzbekistan’s broader strategy to shift from exporting raw materials to producing high-value industrial inputs—especially in sectors vital to green energy, healthcare, defense, and advanced electronics.
Critical minerals such as neodymium, lithium, tungsten, and cobalt are central to technologies including wind turbines, electric vehicle batteries, medical devices, and defense systems.
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