US "Considering Uranium Sanctions on Russia"... Concerns Over Soaring International Uranium Prices

Russia Holds 35% Share in Global Uranium Market
Controversy Persists in US Politics... Sanctions Bill Pending

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The U.S. government has announced that it is considering a ban on Russian uranium imports, raising expectations of additional sanctions involving the European Union (EU) and allied countries. Russian uranium is known to account for more than 35% of global uranium demand, sparking concerns that uranium prices will soar following the surge in oil and natural gas prices.

According to CNN on the 5th (local time), Jennifer Granholm, U.S. Secretary of Energy, testified at a Senate Energy Committee hearing and revealed that a strategy is being developed to impose a ban on Russian uranium as part of additional sanctions against Russia.

Secretary Granholm emphasized, "The President will announce it, but the point is that the U.S. will not send money to Russia for any energy-related transactions," adding, "The Department of Energy is currently formulating an overall strategy to ensure stable uranium supply." Accordingly, the U.S. government is expected to announce a ban on Russian uranium following previous bans on Russian oil and natural gas.

Until now, it was anticipated that while bans on Russian oil and natural gas?which account for about 5% of total U.S. demand?would be relatively easy to implement, a ban on uranium, which has a higher share, would be difficult to enforce. According to The Wall Street Journal (WSJ), Russian uranium accounts for approximately 16.5% of U.S. uranium demand. When combined with imports from former Soviet countries such as Kazakhstan, WSJ reported that it amounts to about half of total demand.

If a ban on Russian uranium is implemented, it is likely to lead to higher electricity prices in the U.S., and the issue remains controversial in American politics. In March, Republican senators introduced a bill to ban Russian uranium, but it is still pending in Congress.

If the U.S. announces a ban on Russian uranium, the EU and U.S. allies are also expected to join, raising concerns about a sharp rise in uranium prices. According to CNBC, Russian uranium accounts for about 35% of the total international market for uranium used in power generation.

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