In a move that could disrupt the U.S. nuclear energy sector, Russia has imposed temporary limits on enriched uranium exports to the United States. Announced via Telegram, the restriction offers no specifics about its scope or duration but highlights the fragile state of the U.S. nuclear fuel cycle.

Russia, which holds nearly half of the global capacity to enrich uranium, supplied over 25% of the enriched fuel used in the U.S. last year. While 2024 deliveries are largely complete, experts warn that utilities relying on Russian fuel in 2025 may face significant shortages.

Uranium companies led gains in early trading on the ASX, after Russia imposed temporary restrictions on the export of enriched uranium to the US on Fridayhttps://t.co/NctRRqePyx

— Capital Brief (@CapitalBrief) November 18, 2024

“This could affect utilities that were expecting that material,” said Jonathan Hinze, a uranium market expert. The U.S. nuclear industry, already grappling with supply chain weaknesses, may be unprepared for such a disruption.

The restriction follows President Joe Biden’s decision to ban Russian uranium imports in May, a policy that allows shipments to continue under waivers until 2028. Critics argue that this policy has done little to address the long-term vulnerability of U.S. nuclear energy to foreign suppliers.

Chris Gadomski, head nuclear analyst for BloombergNEF, expressed frustration with the lack of foresight. “They should have been stockpiling enriched uranium in anticipation of this happening,” he said, pointing to the administration’s slow response to rebuilding domestic uranium enrichment capacity.

"We Don't Have Enough…": Russia Temporarily Limits Exports Of Enriched Uranium To U.S. https://t.co/WlUPikW0Hw

— zerohedge (@zerohedge) November 16, 2024

Although the Biden administration has initiated a multibillion-dollar program to revive the U.S. enrichment industry, it remains in its infancy. Without significant progress, the nuclear sector may face challenges meeting fuel demands in the coming years.

"We Don't Have Enough…": Russia Temporarily Limits Exports Of Enriched Uranium To U.S. https://t.co/WlUPikW0Hw

— zerohedge (@zerohedge) November 16, 2024

Russia’s move highlights the urgent need for the U.S. to reduce its reliance on foreign energy sources and invest in domestic infrastructure to secure its energy future.