Uranium ban sparks price hike fears as US moves to cut off Russian fuel supply
A new bill banning Russian imports of uranium into the United States is tipped to see a major increase in the cost of enriched uranium.
Price jumps of as much as 20% have been forecast after the “Prohibiting Russian Uranium Imports Act” bill was passed by the US House of Representatives.
US nuclear power plants imported about 12% of their uranium from Russia in 2022, with the bill’s proponent, House Energy and Commerce Committee chair Cathy Rodgers, stating that “cheap” Russian imports accounted for more than 20% of nuclear fuels for American reactors.
Significant security implications
Speaking in support of the bill, Ms Rodgers said it strengthens the US’s energy and national security by prohibiting all imports of enriched uranium produced by Russia.
“American leadership in nuclear energy and nuclear technology is critical to our economic and national security.”
Ms Rodgers said the US reliance on Russia’s supply of fuels for its nuclear fleet was also one of the most urgent security threats America faces.
“This threat has intensified as a result of the war in Ukraine. American nuclear fuel infrastructure has been stunted by policies that Russia has exploited by flooding the US market with its cheaper fuel.”
Russian uranium purchases
In 2022, the US nuclear industry paid more than $1.2 billion to Russia’s state-owned nuclear energy corporation Rosatom and its fuel subsidiaries.
“That number could be even higher this year and these resources are no doubt going towards funding Putin’s war efforts in Ukraine,” Ms Rodgers stated.
“Further, we’ve seen how Putin has weaponised Europe’s reliance on Russian natural gas. There’s no reason to believe Russia wouldn’t do the same with our nuclear fuel supply if Putin saw an opportunity.”
“The risks of continuing this dependence on Russia for our nuclear fuels are simply too great. It’s weakening America’s nuclear fuel infrastructure, which has declined significantly because of reliance on these cheap fuels.”
Wide-ranging support
The passing of the bill has received wide-ranging political support in the US.
Senator John Barrasso, a ranking member of the Senate Committee on Energy and Natural Resources and co-proposer of the bill, said the introduction of the legislation will end the US dependence on Russian nuclear fuel.
Senator Barrasso also noted that the US Senate and House of Representatives are preparing to vote on the National Defense Authorisation Act for fiscal year 2024.
This legislation includes the Nuclear Fuel Security Act to ensure that the US can develop and maintain a reliable domestic supply of nuclear fuel.