White House Considers Russian Uranium Import Ban, Prompting Surge in Uranium Stocks

Uranium stocks surged in late US trading after reports surfaced that the Biden administration is considering an executive order to ban Russian imports of enriched uranium. This move comes as congressional efforts to address the issue have stalled, with officials from various government agencies exploring ways to reduce reliance on Russian uranium imports.

The potential ban could include waivers similar to previous legislation that passed quickly in the House last year. While final decisions have yet to be made, sources indicate that the administration and the nuclear industry prefer Congress to enact the ban. However, executive authority may be utilized if necessary.

Following Russia’s invasion of Ukraine, Washington imposed sanctions on Russian oil and gas, yet Russian-enriched uranium continues to be imported. Energy Information Administration data shows that Russia supplies about a quarter of all enriched uranium used in American commercial reactors, with US power plants spending approximately $1 billion annually on Russian-enriched uranium.

Replacing this supply could prove challenging and may result in a potential increase in enriched uranium costs by as much as 20%. The news of a possible ban on Russian uranium imports led to a rise in the stock prices of major uranium companies such as Cameco Corporation, Uranium Energy Corp, and Sprott Uranium Miners ETF.

Experts suggest that a ban on Russian uranium imports could raise nuclear fuel costs by at least 13%, if not more. Jonathan Hinze, president of UxC, a nuclear industry research firm, mentioned that uranium prices may have hit bottom recently. The situation remains fluid as discussions continue on how best to address the issue of American reliance on Russian uranium.