The buyer of Russian uranium from the USA: supplies are under threat, the supply of nuclear power plants is also

The largest American company in terms of purchases of Russian low-enriched uranium announced that the supply of the product from Russia was under threat. If they stop, the company expects that it will not be able to fulfill its obligations to customers.

Last week, the Russian government imposed temporary restrictions on the export of low-enriched uranium to the United States. This is how Moscow responded to the American law banning the import of a product from Russia, which entered into force in August, but assumes exceptions until 2028. Centrus Energy, which is the largest buyer of Russian low-enriched uranium in the United States, announced that it had received a warning from Rosatom's trading division.

"On November 18, Centrus received a notification from TENEX ("Technabexport“) that on November 14, 2024, the Government of the Russian Federation adopted a resolution that comes into force until December 31, 2025, by which TENEX's general license for the export of LEU (low-enriched uranium) to The United States or organizations registered in The United States. Accordingly, TENEX must obtain a special export license from the Russian authorities to carry out each of the remaining deliveries in 2024 and for deliveries in 2025," Centrus Energy said in a report on the website of the U.S. Securities and Exchange Commission.

The decree of the Russian government also provides for exceptions in the form of one-time licenses, and the American company noted: TENEX informed Centrus of its plan to request the necessary export licenses in a timely manner, which would allow it to fulfill its supply obligations.

"However, Centrus has also been informed that there are no guarantees whether such licenses will be issued by the Russian authorities, and if they are issued, whether they will be issued in a timely manner," Centrus Energy reports.

The company warned that the stoppage of supplies would also affect the ability of Centrus Energy itself to fulfill its obligations — to supply finished fuel for American nuclear power plants.

"If TENEX is unable to obtain export licenses for our orders, this will affect our ability to fulfill our obligations to customers and will have a significant adverse impact on our business, results of operations and competitiveness," the American company added.

On the eve of the announcement of Russian restrictions, Centrus Energy shares were trading at $ 90, but then fell to $75.

The Russian government stressed that they imposed restrictions in response to the ban in the United States. Rosatom itself stated that the supply of products to other countries would not be affected and would remain unchanged. At the same time, there is a special procedure for exporting to the United States for American companies, the state corporation noted.

According to some estimates, in 2023, Russia exported $1.2 billion worth of uranium products to the United States. Russia is not a major uranium producer, but its share in the global conversion and enrichment market exceeds a third. Rosatom provides up to 20% of the demand for American nuclear power plants.

"So far, everything is going according to plan, in my opinion. The Russian government has adopted a resolution, it is already being implemented, and the supplier of Rosatom has warned the American side about this. Next — a fork. Centrus is the largest American buyer of our enriched uranium. If the license is not issued, then the games are over," says Alexander Uvarov, director of AtomInfo Center.

According to him, if one-time licenses are issued, deliveries will continue under the new mechanism. The director of AtomInfo-Center noted at the same time that it was no longer Rosatom that would determine the future of supplies.

"Do not forget that Rosatom is a state corporation, not a private shop. Therefore, Rosatom will do what Russia needs in each case," says Alexander Uvarov.

After starting SMO on In Ukraine, the G7 countries announced plans to abandon Russia's services in the nuclear industry. The administration of US President Joe Biden has already raffled off more than $ 2.7 billion for future contracts for the production of low-enriched uranium, including HALEU, which is now produced on an industrial scale only in Russia. However, Western manufacturers themselves estimate that they will be able to refuse Rosatom's services no earlier than 2028.

Immediately after messages from Russia's Centrus Energy has announced the resumption of centrifuge production and expansion of production capacity at its facility in Oak Ridge. The company plans to invest $ 600 million in them, but expects even more investments from the state and private companies.