Why Western countries are dependent on Russian nuclear fuel
Introduction
Despite the fact that about 18 months have passed since the start of the military operation in Ukraine, Western countries, especially America, have not been able to overcome their dependence on Russian nuclear fuel.
The Kremlin-controlled Rosatom remains the dominant source of fuel for nuclear power plants around the world, supplying about half of the world’s need for enriched uranium, according to Bloomberg.
How is nuclear fuel produced?
Nuclear power plants run on uranium, a relatively common naturally occurring radioactive element.
However, uranium ore must go through an extensive industrial process before it can be used in a reactor, where the element must be extracted, crushed and converted into gaseous form.
Then, in enrichment plants, the isotopes, which make up about 0.7% of the heavy metal, are separated into a powder form that can be accurately turned into rods that are collected in reactor fuel assemblies.
And because the same materials and processes that are used to make reactor fuel can also be used to make weapons, the exact details of the nuclear fuel cycle have been one of mankind’s best-kept mysteries ever since it was first developed by scientists as part of the Manhattan Project during World War II.
But why is Russia so dominant?
Unlike Western nuclear companies, Rosatom is involved in all stages of the supply chain, from oil production to enrichment and fuel delivery.
This company is an expression of the Kremlin’s geopolitical power as well as a profitable company, and such a commitment at the state level is in Russia’s interests. Some Western companies involved in the fuel cycle have gone bankrupt, including Areva in France, an American enrichment company and the Westinghouse electricity company.
Russia stepped in, increasing its market share not only among the world’s existing nuclear reactor fleet, but also by providing generous funding for new foreign projects.
Today, Rosatom’s 330,000 employees supply fuel assemblies for dozens of aging reactors in Eastern Europe and Russia.
It is also building 33 new units in ten countries, including China and India, that will be tied into fuel contracts for decades to come.
Which countries are the most dependent?
Former Soviet satellites in Eastern Europe continue to power dozens of so-called VVER pressurized reactors built during the Cold War. This means that new companies have little incentive to enter this market and compete with Russian supplies.
In general, Russia covers about 30% of the EU’s need for enriched uranium.
How vulnerable is the US?
After the Cold War, trade in atomic energy between the two countries grew under the so-called Megaton to Megawatt program, which turned 500 tons of Russian weapons-grade uranium into fuel suitable for American reactors.
According to the US government, Russia remains the main supplier of uranium mining, processing, conversion and enrichment services for US enterprises and in 2022 it will supply about a quarter of the enriched uranium purchased by US nuclear power reactors. An even greater risk is the provision of higher levels of enriched uranium, which is used in the new generation of so-called small modular reactors (SMRs), as this reduces the frequency of refueling. Rosatom is currently supplying the United States with what is called hallyu, or high-enriched, low-enriched uranium.
What is being done to reduce dependence on Russia?
Efforts to diversify nuclear fuel supplies from Russia look like a “Frankenstein monster,” Rosatom told clients in June, stressing that while each Western country owns parts of the nuclear fuel supply chain, no country can compete with its own integrated brand.
However, Rosatom stressed that they “are aware of the risks” and “will defend their interests”, partly offering countries “the best solutions that have already been tested.”
