How Russia’s Invasion of Ukraine May Affect the

How Russia’s Invasion of Ukraine May Affect the Nuclear Sector in the U.S.

Last month, we saw Russia invade Ukraine after years of conflict. This invasion has raised questions about the flow and cost of fuel to the advanced nuclear reactors in the United States, which are considered a primary tool in the fight against climate change.

When issuing an executive order to block imports of natural gas and crude oil from Russia earlier this month, President Biden did not include uranium on the list. However, the White House has been conferring with the nuclear sector about the possible impact of imposing sanctions on Rosatom, a Russian-based nuclear energy company. Imposing sanctions on this state-owned corporation may present long-term challenges for the fleet of reactors in the U.S., which need low-enriched uranium to operate.

Jeff Merrifield, a former Nuclear Regulatory Commission member, agrees that imposing sanctions on Russia could impact the present timeline for the deployment of advanced reactors in America. Merrifield, who served under both the George W. Bush and Clinton administrations, explained that in the short term, Russia was the best option for providing advanced reactor fuel that’s enriched between 5% and 20%.

Experts say that while the existing plants have fuel that can last the next six to eight months or longer, sanctions on uranium imports from Russia may increase the global cost of low-enriched uranium. Currently, Russia supplies 20% of the uranium required for the operation of nuclear plants in America.

While this is a major concern for many, others expect the advanced reactor demonstrations set to begin in 2028 to be a bigger concern as the reactors will need HALEU or high-assay, low-enriched uranium. Russia is the sole commercial supplier of HALEU around the globe because of its licenses, capabilities and existing enrichment infrastructure.

This has highlighted the need for the U.S. to invest in domestic and alternative sources of fuel for its advanced reactors.

In an interview, John Kotek, the senior VP of policy development and public affairs at the Nuclear Energy Institute, stated that the institute was focused on calling attention to the fact that there weren’t enough enrichment capabilities in the U.S. for nuclear plants. He also noted that Russia’s act of invading Ukraine placed emphasis on the need for the U.S. to invest in its domestic fuel cycle in order to meet its needs.

During a separate interview at CERAWeek, Kotek noted that nuclear power was still recognized as crucial to decarbonization. However, it remains unclear how sanctions imposed on nuclear imports would affect operators in the U.S.

This crisis also offers opportunities for setting up domestic facilities where the uranium mined by local companies such as Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) can be further processed for use in various applications, such as feeding advanced nuclear energy reactors with the fuel they need.

NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU

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