The US company, the largest buyer of Russian low-enriched uranium, reported that supplies of the product from Russia were threatened. If they stop doing so, the company hopes that it will also be unable to meet its obligations to customers.
Last week, the Russian government introduced temporary restrictions on the export of low-enriched uranium to the United States. This is how Moscow responded to the US law banning the import of products from Russia, which came into force in August, but provides for exceptions until 2028. Centrus Energy, which is the largest buyer of Russian low-enriched uranium in the United States, said it had received a warning from Rosatom’s commercial arm.
“On November 18, Centrus received a notification from TENEX (Technabexport) that on November 14, 2024, the government of the Russian Federation adopted a decree, effective until December 31, 2025, revoking the general license of TENEX to export 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 for each of the remaining shipments in 2024 and for shipments in 2025.” – Centrus Energy reports in a report on the US Securities and Exchange Commission website.
The Russian government decree also provides for exceptions in the form of one-time licenses, and the American company noted: TENEX has informed Centrus of its plan to quickly apply for the necessary export licenses that will allow it to meet its supply obligations.
“However, Centrus has been informed that there are no guarantees that such licenses will be issued by the Russian authorities and, if they are issued, that they will be issued in a timely manner.” – Energy Center Reports.
The company warned that the supply interruption would also affect Centrus Energy’s ability to meet its obligations: supplying finished fuel to US nuclear plants.
“If TENEX is unable to obtain export licenses for our orders, our ability to meet our obligations to customers will be impaired and will have a material adverse effect on our business, results of operations and competitiveness.” – added the American company.
On the eve of the announcement of the Russian restrictions, Centrus Energy shares were trading at $90, but later fell to $75.
The Russian government emphasized that it introduced 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 American companies regarding exports to the United States, the state corporation noted.
According to some estimates, Russia exported uranium products worth $1.2 billion to the United States in 2023. Russia is not a major uranium producer, but its share of the global conversion and enrichment market exceeds a third. Rosatom covers up to 20% of the demand of US nuclear power plants.
“In my opinion, so far everything is going according to plan. The Russian government adopted a resolution that is already being implemented and the supplier Rosatom warned the American side about it. Next is a fork. Centrus is the largest US buyer of our enriched uranium. If the license is not granted, the games will end.” – says the director of the AtomInfo-Center Alexander Uvarov.
According to him, if single licenses are granted, the supply will continue according to the new mechanism. The director of the AtomInfo-Center noted that it will no longer be Rosatom who will determine the future of supply.
“Let’s not forget that Rosatom is a state corporation, not a private shop. That is why Rosatom will do what Russia needs in each specific case.” – says Alexander Uvarov.
After the start of the SVO in Ukraine, the G7 countries announced plans to abandon Russian services in the nuclear industry. US President Joe Biden’s administration has already awarded more than $2.7 billion for future low-enriched uranium production contracts, including HALEU, which is now produced on an industrial scale only in Russia. However, Western manufacturers themselves estimate that they will not be able to refuse Rosatom’s services before 2028.
On the heels of the Russia reports, Centrus Energy announced it would resume centrifuge production and expand production capacity at its Oak Ridge facility. The company plans to invest 600 million dollars in them, but expects even more investments from the State and private companies.
