Global Nuclear Industry's Dependence on Russia

The interdependence between Russian and Western nuclear industries has shielded Russia from European sanctions. European countries with Russia-designed reactors are seeking alternative fuel sources, but many stockpiled Russian fuel last year. Western companies rely heavily on Rosatom for nuclear reactor construction abroad, complicating the imposition of sanctions on Russia.

The Russian and Western nuclear industries continue to be mutually dependent, shielding Russia from European sanctions, according to the World Nuclear Industry Status Report released on Thursday. The report suggests that cutting Western dependence on Russian nuclear resources would likely escalate costs.

Following Russia's 2022 full-scale invasion of Ukraine, several European Union countries with Russian-designed VVER reactors have been seeking alternative fuel sources, notably from U.S.-based Westinghouse Electric. Nonetheless, these countries significantly increased their imports of Russian fuel last year by stockpiling.

Many Western companies rely heavily on Russia's state-owned Rosatom for the construction of new nuclear reactors abroad, which is crucial for their parts sales. The interdependence remains substantial, the report stated, emphasizing that European hesitations to impose sanctions on the nuclear sector are partly due to these close industrial and market ties. Reducing dependence on Russia in areas such as natural uranium or enrichment services will probably raise costs, the report added.

(With inputs from agencies.)