U.S. Uranium Importers Could be Affected by Russia’s Counter-Sanctions Bill

Uranium could be on the list of materials considered for export restrictions to the U.S. in Russia’s counter-sanctions bill currently in parliamentary procedure, Streetwise Reports writes.

According to the report, if Russia does restrict uranium exports to the United States, that could be bullish for the price of uranium as well as for uranium companies. Shares of Energy Fuels Inc., the largest producer of energy in the U.S., and Ur-Energy Inc., another U.S. uranium producer, have increased since the release of the news. Shares of Energy Fuels just reached a 52-week high.

Uranium fuel is an essential part of the American energy mix because nuclear power produces about 20% of American electricity. The U.S. currently imports most of its uranium which is used for fuel in nuclear power plants to generate electricity. About 14% of uranium used in America comes from Russia currently. Another 25% or so comes from Kazakhstan, which was part of the former Soviet Union, with most of the remaining uranium coming from Canada and Australia.

“The U.S. imports half of their uranium from Russian and Russia-friendly countries. They import 95 percent, but half of that is Russian, Russian friendly. At the tensions that are right now, it takes one sanction against Russia for uranium not to come in, and I think it’s a huge risk,” says Stock Catalyst Report uranium expert Mike Alkin.

The announcements made about Russia’s potential uranium export restriction to the U.S. didn’t have much effect on the spot price of U3O8.

Another catalyst for the price of uranium could be a limit on the amount of uranium imports to the United States. Energy Fuels and Ur-Energy have submitted a Section 232 petition to the Department of Commerce asking for relief from overseas uranium imports that threaten national security.

Former Assistant Secretary of Commerce for International Economic Policy Thomas Duesterberg wrote in support of the petition in Forbes on April 26, noting, “A viable U.S. uranium mining industry is needed to meet both defense requirements in the future and guard against becoming reliant on Russian and Russian-affiliated suppliers.”