News: Will U.S. import of uranium from Russia be banned?
Why is the United States importing uranium from Russia?
Rosatom is Russia’s largest and state-backed nuclear power company. Which has been exporting uranium to the United States.
Since the end of the Cold War, the United States and Russia have been in agreement on the dismantling and creation of nuclear weapons. This led to the U.S. importing some of the dismantled warheads from the former USSR to create energy for itself.
Since then, America has been importing about 14% of its uranium from Russia.
Why would there be a ban on the import from Russia?
Rosatom has been suspected of delivering raw materials to the Russian military during the war in Ukraine. Its large capacity can ensure that the Russian forces have loads of material for missile fuel, nuclear fuel and technology components.
Of course, because of political tensions between the countries, the United States has imposed multiple bans on Russia and its companies. But none so far on one that deliver so much raw materials to the country.
The ban would strengthen the other sanctions imposed upon Russia by all countries, but would of course impact the price and availability of uranium in the country. The bond between other countries, like ones in Europe, would most likely strengthen when imposing such a ban.
This division is what keeps countries from immediately deciding to impose a ban in such a situation. But it is likely that the ban will go through.
How will the ban impact the price of uranium?
The United States does not hold a large reserve of uranium, because the raw material is one that is very radioactive. This also means that it is very reliant on the production and import of it.
When a ban is imposed, the 14% import will be missing from the balance sheets and cause a slight shortage in the supply chain. Of course, this does not immediately mean a halt to all production and uses of the raw material as it is gained in other ways.
Experts expect the price of uranium to go up in the long-term due to the ban, but perhaps by a little. This has to do with the earlier dip and the recovery of the market, more than the ban on Russia.
In its efforts to prepare for situations like this, some companies have made purchases years in advance, ensuring a steady flow of uranium supply.
Next to this, Canadian company Cameco, already stated that it would be helping out by reopening two of its major uranium mines and Global Atomic is developing another uranium mine in Niger.
Is now the right time to invest in uranium?
It is important to keep up-to-date on the latest news on the price of uranium, to ensure that your investment is a good one.
Small changes and scary news might create emotions that are not validated in the price rises or drops. It is important to hear experts’ opinions on the matter before making major decisions.
Though this ban could raise the price of uranium, a ban does not have to be a lifelong decision and once the ban is lifted could see the same dip in price again. This could lead to a good investment strategy for short-term, but that is all depending on your investment strategy.
