Russia has imposed temporary restrictions on the export of enriched uranium to the United States, raising potential supply risks for utility companies operating reactors in the US. These reactors contribute to nearly one-fifth of the country's electricity production.
The Russian government did not provide specific details about the restrictions or their duration in their recent announcement on Telegram. Utility companies typically purchase raw materials far in advance, suggesting that immediate effects might be minimal.
Jonathan Hinze, President of UxC, which tracks the uranium fuel market, indicated that while most uranium fuel for this year has already been delivered, the restriction could start to impact reactor operators in 2025 due to a lack of alternative supply options.
Companies such as Constellation Energy Corp (CEG, Financial), the largest nuclear power operator in the US, and uranium fuel supplier Centrus Energy Corp have received exemptions to continue importing Russian reactor fuel. However, several other exemption requests are still pending approval.
Constellation Energy saw its stock price drop by as much as 1.7% in New York trading.
