Nuclear energy has often been touted as the best clean energy, and prices of uranium - a key component for making nuclear energy - have risen due to a combination of increased demand and ongoing supply constraints. Amid ongoing geopolitical tensions, there has been another interesting development that could affect uranium prices and related stocks.
Specifically, the Senate has approved legislation banning the import of uranium from Russia amid its two-year war with Ukraine. Russia supplies nearly 25% of the uranium used by the U.S. fleet of 90 commercial reactors, providing a significant source of income for Moscow. The bill, which was passed by the U.S. House back in December, prohibits imports from Russia 90 days after its passage, and allows for temporary waivers until January 2028.
