Russia temporarily bans exports to US of enriched uranium after US curbed imports

Russia has imposed temporary restrictions on the export of enriched uranium to the US, the Russian government said Nov. 15, a move seemingly in response to a US ban on Russian uranium products after 2027.

The decree, published on the government's website, bans exports to US territory and under contracts with entities registered in the jurisdiction of the US, the government said, not providing additional details of the restrictions or their duration.

The Federal Service for Technical and Export Control, a government uranium exports regulator, is empowered to issue waivers for enriched uranium exports to the US in the form of one-time licenses, the government said in the statement.

The restriction is a retaliatory move taken in response to partial US restrictions on imports of Russian uranium products between 2024 and 2027, to be followed by a complete ban from 2028, the Russian government indicated, referring to the May 14 law signed by US President Joe Biden restricting Russian enriched uranium imports.

Russia has roughly 44% of the world's uranium enrichment capacity. According to US Energy Information Administration data, Russia accounted for 27% of enrichment service purchases by US utilities in 2023.

On Sept. 11, Russian President Vladimir Putin instructed the Russian government to consider imposing restrictions on exports of several strategic resources, including uranium, a statement published on the Kremlin website that day said.

Putin suggested that the authorities should impose export restrictions "in response to similar measures introduced by other countries against Russia."

Russian state nuclear company Rosatom said in its annual report published Sept. 11 that it was a leader in the world's uranium enrichment services industry, holding a 36% stake in the global market.

Rosatom's imports of low-enriched uranium into the US market are estimated to be close to 3 million SWU/year, equivalent to the annual uranium consumption of 20 large reactors, Alexander Uvarov, head of the Russian analytical service Atominfo-Center, said in an interview May 7.

The law banning enriched uranium imports from Russia was a response to that country's invasion of Ukraine. It was passed earlier this year and went into effect in August. It allows the US Department of Energy to issue waivers to US utilities that require Russian material to keep their nuclear reactors operating.

The DOE has issued at least two waivers, nuclear industry sources have said, one to US uranium enrichment company Centrus and one to power company Constellation, which is the largest operator of US nuclear reactors. Both waivers allow import of an unknown amount of enriched Russian uranium in 2024 and 2025. Waivers can be issued by the DOE only through the end of 2027.

Uranium price jumps on news

The news of the Russian export ban sent uranium prices rising, although market participants said the news was not entirely surprising given Putin's September comments and a long-standing industry concern that Russia could retaliate over the US import ban.

Platts, part of S&P Global Commodity Insights, assessed uranium concentrate, U3O8, for current-month delivery at $82.25/lb, up $4.10 day on day.

"Russia 'temporarily' banning EUP [enriched uranium product] exports to the US has been a card that has been near the top of the deck and should not surprise anyone in the nuclear fuel business," a US uranium market participant said Nov. 15. The cutoff of Russian material "could be a significant challenge for some U.S. utilities but [the] timing [is] uncertain." The person spoke on condition of anonymity to discuss sensitive geopolitical matters.

Rosatom did not provide comment on the impact of the Russian government restriction on its operations.