In a unanimous decision, the US Senate has greenlit legislation to halt imports of Russian uranium, escalating efforts to disrupt Russia’s activities amidst its ongoing conflict with Ukraine.
The ban, expected to take effect within 90 days of enactment, is also poised to significantly impact the US market, given that the nation relies on imports to fulfill 100 percent of its annual uranium needs.
The bipartisan bill, which received earlier approval from the House of Representatives in December, includes provisions for waivers in the event of domestic supply shortages for nuclear reactors. Moreover, it earmarks US$2.7 billion, previously allocated in legislation, to bolster the development of the domestic uranium processing industry.
The proposed statute, set to expire at the end of 2040, also includes provisions allowing the Department of Energy (DOE) to issue waivers authorizing Russian uranium imports up to export limits established in an anti-dumping agreement through 2027.
However, failure to secure these waivers could lead to a significant spike in uranium prices, potentially reaching record highs.
Senator John Barrasso, Wyoming’s Republican senator and top figure on the Senate Energy Committee, emphasized the readiness of states like Wyoming to step in and fill the void left by Russian imports.
President Joe Biden, who recently signed a foreign aid bill channeling significant support to Ukraine, is expected to endorse the legislation banning Russian uranium imports.
Earlier this year the Biden administration announced incentives for private companies to ramp up the production of high-assay low-enriched uranium (HALEU).
The move comes as part of a broader effort to reduce reliance on foreign sources of nuclear fuel and stimulate the growth of the US nuclear energy sector.
Last autumn, a facility in Ohio initiated the nation’s first domestic production of HALEU, albeit at a small scale. Now, with the support of the federal government, efforts are underway to expand domestic production capacity.
The DOE has offered private companies a minimum of US$2 million each to kickstart HALEU production, marking the second phase of a US$500 million allocation from President Biden’s climate-spending law, the Inflation Reduction Act.
The move to incentivize domestic HALEU production comes amid growing concerns over Russia’s dominant position as a supplier of traditional fuel imports for American utilities. While the US and its allies have imposed sanctions on Russian oil, gas, and mining companies in response to Russia’s actions in Ukraine, the state-owned Rosatom continues to be a significant source of traditional fuel imports.
He earlier called on the Senate and White House to champion measures to deploy nuclear waste recycling, describing it as a win-win solution that addresses both the nuclear waste problem and the need for domestic fuel production.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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