Last week the United States authorized the use of American-made long-range missiles by Ukraine against Russia which the Russian government says risks escalation to a nuclear conflict in the almost three-year-old war. The Russian government reacted by announcing an unnerving shift in nuclear doctrine. It also announced reductions in uranium exports to the United States. By how much and for how long, the government did not say.
In light of what can only be seen as a proxy war in Ukraine between the United States along with its NATO allies and the Russian Federation, it is passing strange that the United States still relies on Russia for 27 percent of its enriched uranium. Oddly, the reaction in the spot market for uranium was a 4 percent slump in prices. Most customers for uranium—primarily nuclear power plants—have stockpiles and long-term contracts, so an immediate effect on spot prices was unlikely. But the price of uranium mining stocks soared in anticipation of greater pressure on mine supply outside Russia, the world's sixth largest producer.
This development highlights a vulnerability among metal importers across the globe. When relations between a large exporter of minerals and a large importer of them goes south, the consequences can be significant. While it's true that the exporter loses some revenue, critical material and energy shortages can have large effects. Inadequate uranium fuel for nuclear power stations could eventually lead to loss of generating capacity.