Investing.com – Shares of Australian uranium producers rose sharply on Wednesday, sidestepping declines in broader markets after the U.S. Senate passed a bill blocking imports of enriched uranium from Russia, portending a decline in global supplies.
Lotus Resources Ltd (ASX:), Bannerman Energy Ltd (ASX:), Dark yellow Ltd. (ASX:), Boss Resource Ltd. (ASX:), Paladin Energy Ltd (ASX:) and Peninsula Energy Ltd (ASX:) were up 2-7% compared with a loss of more than 1% in the broader index.
The US Senate on Tuesday voted unanimously for a bill blocking the import of enriched uranium from Russia, sending it to the presidential administration for approval. The bill comes as the United States tightens sanctions against Russia over its 2022 invasion of Ukraine, a conflict that has yet to show any signs of de-escalating.
Tuesday’s vote came after the House approved the bill in December. The bill would ban imports 90 days after passage, but would also include waivers for domestic supply problems.
The bill also includes $2.7 billion to financially support the development of uranium processing capacity in the United States.
While the bill does deprive Russia of another source of revenue, it also portends a tightening in global uranium markets, given that Russia is the world’s largest exporter of enriched uranium. The country is also the world’s largest provider of uranium enrichment services.
Enriched uranium is used to power nuclear reactors, which generate electricity.
After the bill was passed, that figure rose nearly 3%, reaching a nearly two-month high.
Blocking Russian imports represents an opportunity for Australian uranium mining and processing companies, which have otherwise struggled with low uranium demand since the 2011 Fukushima disaster in Japan.
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