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An interesting thought from GLJ Research founder Gordon Johnson: with the US carving out an explicit loophole for Russian uranium exports (thanks Hillary), suggesting that while it may not care for Russian oil or gas the US is certainly desperate for Russian uranium, Johnson asks if – in order to inflict as much pain as possible on the US – enriched Uranium will be on the list of Russian products temporarily excluded for export due out shortly (link). 

Johnson notes that if this happens, it would send uranium prices higher (and potentially much higher) as Russia is currently 40%-45% of the world’s enriched Uranium supply.

Some more details from GLJ’s note:

WHY? As simply as we can put it (and as we published last week)… 40%-45% of the world’s enriched Uranium comes from Russia; thus, if there is a lack of enriched uranium exported to the world from Russia, this would require Western nuclear utilities to buy larger quantities of uranium so that non-Russian enrichers like Urenco could overfeed their centrifuges to achieve the desired level of the world’s enrichment needs.

CONCLUSION. Biden decided to “hit Putin hard” by banning imports on many items, excluding uranium at the request of US utilities. In other words, Biden highlighted the uber importance of enriched uranium from Russia. Logically Putin will hit him back, as hard as he can, assuming he can bear the financial implications (while we have no edge on if uranium will be included, if it is… prices are likely set to skyrocket higher).

Certainly, something to look out for, as well as Sprott Physical Uranium Trust (U.UN; NC) being added to the NYSE (paper work has been submitted, yet it has not yet been added).