NewsPutin hints at limits on critical metal exports amid sanctions

Putin hints at limits on critical metal exports amid sanctions

Russian dictator Vladimir Putin suggested on Wednesday that his country might limit the export of uranium, titanium, and nickel in retaliation for Western sanctions. The president's statement caused a rise in nickel prices and the stock prices of companies involved in uranium mining.

Vladimir Putin suggested that his country could restrict the export of uranium, titanium, and nickel in retaliation for Western sanctions.
Vladimir Putin suggested that his country could restrict the export of uranium, titanium, and nickel in retaliation for Western sanctions.
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Katarzyna Kalus

They are restricting supplies of a number of goods to us. Well, maybe we should also impose certain restrictions [for them]? — he announced in a statement addressed to his ministers. He added that it concerns some goods delivered by Russia to the global market in large quantities.

— Uranium, titanium, nickel — listed the president. However, he cautioned that "let’s not do anything to our own detriment."

Russia is among global leaders in terms of reserves of strategic raw materials: it accounts for almost 22% of natural gas, almost 23% of gold, and about 55% of diamonds — he announced.

Reuters, citing market analysts, writes that Russia remains one of the most important suppliers of metals to world markets, so a reduction in supply or its suspension would cause serious problems.

After Putin's statement on the London Metal Exchange (LME), nickel prices increased by 2.6%. The shares of companies involved in uranium mining also jumped; in the case of Canadian companies NexGen Energy, Cameco, and Denison Mines, they rose by 5.2% to 5.4%.

Enriched uranium from Russia for the USA

In May, US President Joe Biden signed a law banning the import of enriched uranium from Russia, but it contains clauses allowing for the suspension of this ban in case of supply issues, which may allow the US Department of Energy to maintain imports at a normal level until 2027.

In 2023, Russia supplied America with 27% of the enriched uranium used by commercial nuclear reactors. Such significant deliveries "will be really hard to replace, especially in the short term, the next 2-3 years," explained Citi Bank analyst Arkady Gevorkyan.

Russia is also a significant exporter of titanium, which the USA still purchases from it, although the largest buyers are France, China, and Germany.

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