US bans Russian uranium imports, crucial for nuclear fuel supply, but waivers could make it toothless

President Joe Biden signed a ban on imports of Russian enriched uranium to US,the White House announced, in a move being touted as Washington'sendeavor to disrupt President Vladimir Putin's invasion of Ukraine, but waivers could make the law toothless.

The development is significant asRussia holds the title of the world's leading supplier of enriched uranium, with approximately 24% of the fuel utilised by US nuclear power plants originating from the country.

The ban on imports of the fuel for nuclear power plants begins in about 90 days, although it allows the Department of Energy to issue waivers in case of supply concerns.

The law, signed by Biden on Monday (May 13), also unlocks about $2.7 billion in funding in previous legislation to build the US uranium fuel industry.

"Today, President Joe Biden signed into law that will strengthen our nation's energy and economic security by reducing, and ultimately eliminating, our reliance on Russia for civilian nuclear power," Jake Sullivan, the national security adviser, said in a statement.

Sullivan further said that the legislation aligns with the multilateral objectives established with our allies and partners, reflecting commitments made in December alongside Canada, France, Japan, and the United Kingdom to jointly invest $4.2 billion to enhance uranium enrichment and conversion capabilities.

Waivers could make it a toothless law

Even as questions remain why the US continued with this trade in spite of public pronouncements against Russia over Ukraine war, a waiver system could make this law practically dead on arrival.

A report earlier by S&P Global had said that as per the waiver system, "companies with enriched uranium contracts with Russia can seek to continue to receive their material by demonstrating they do not have viable alternate sources of fuel or that continued deliveries are in the national interest."

A Reuters report seemed to suggest that under the waivers, if implemented by the Energy Department, Russian uranium imports to the US could continue normally through 2027.

Anatoly Antonov, Russia's ambassador to the United States, said that Washington's decision surprising in global economic relations, but will not bring any results.

"The balance between exporters and importers of uranium products is being disrupted," the Russian embassy in Washington cited Antonov as saying in a post on its Telegram messaging channel.

(With inputs from agencies)