•   Biden administration contemplates executive order to ban Russian enriched uranium imports amid congressional impasse, sparking surge in uranium stocks.
• Concerns rise over America’s heavy reliance on Russian uranium for nuclear power plants, with estimates of over $1 billion spent annually and potential economic risks highlighted by the White House.
• Transitioning away from Russian sources poses challenges, including supply shortages and projected cost increases of up to 20%, prompting market reactions and Congressional Budget Office warnings of potential nuclear fuel cost hikes.

Uranium stocks rallied late in the US trading session following reports from Bloomberg, which cited insider sources indicating that the Biden administration is contemplating an executive order to prohibit Russian imports of enriched uranium. This development comes as efforts in Congress to address the issue have stalled.

Discussions among high-ranking officials, including those from the White House National Security Council and the Department of Energy, have centered on the need to reduce reliance on Russian uranium imports. While there is a preference for congressional action, the administration is considering executive measures if necessary.

The potential ban raises critical concerns about America’s dependence on Russian uranium for its nuclear power plants. Visual representations, such as those by Bruno Venditti of Visual Capitalist, underscore the significance of this reliance, with estimates suggesting annual expenditures of over $1 billion on Russian-enriched uranium by American power plants.

The White House has emphasized the economic risks associated with such dependence, particularly in light of geopolitical tensions. However, transitioning away from Russian sources poses its own challenges, including potential supply shortages and a projected increase in enriched uranium costs, which could surge by as much as 20%.

In response to the news, uranium stocks experienced a notable uptick, with companies like Cameco Corporation, Uranium Energy Corp, and the Sprott Uranium Miners ETF seeing gains. However, concerns linger regarding the impact on nuclear fuel costs. The Congressional Budget Office estimates that a ban on Russian uranium imports could elevate costs by at least 13%, further highlighting the complexities of the situation.