Does America make anything anymore? The answer is obvious. We make social justice hashtags and hire political consultants to come up with them.
Gas and food prices are obviously up for a variety of reasons, including runaway inflation, but also the Russian invasion of Ukraine.
Uranium prices are also up. A lot.
Uranium prices have gained as much as 40% since Russia’s invasion of Ukraine, touching levels the market hasn’t seen in more than a decade, even though the war has had little immediate impact on global supplies of the fuel used to generate nuclear energy.
Does that affect us? Unfortunately yes.
Unlike Europe, the U.S. is not dependent on Russian oil or natural gas, says John Ciampaglia, CEO of Sprott Asset Management, but it is “partially dependent” on enriched uranium from Russia. U.S. utilities rely on Russia for 16% of their enriched uranium supply, while Europe relies on Russia for 20%, he says.
“Any disruption in this supply caused by sanctions imposed by the West, self-sanctions adopted by utilities, or Russia deciding to ban the export of enriched uranium, further exacerbates the structural supply deficit that already exists in the market,” says Ciampaglia.
We get about a fifth of our uranium from Canada, and about half from Russia and countries in its sphere of influence like Uzbekistan and Kazakhstan.
America used to mine our own uranium but then in the nineties, the glorious period when we decided to outsource our entire economy to our enemies, our domestic production went away.
And so we actually depend on Russian uranium. Who won the Cold War again?