Nuclear energy is expected to be a cornerstone in energy policies for many countries, but the challenge for governments and utilities will be securing ample uranium supply, especially if Russia sources are curtailed, according to a new report by Sprott Asset Management.

The report notes that the European Commission is discussing a ban on new investments in Russia’s mining sector. For investors, disruptions in supply chains may cause utilities to increase inventories and advance procurement plans, ultimately bolstering uranium demand and prices.

Even though there are no official sanctions on Russian uranium, the country’s dominance of conversion and enrichment – with 27% and 39% respectively of the globe’s capacity – saw prices for uranium conversion and enrichment services more than double in 2022.

“We believe this upward price pressure will cascade down to the uranium spot price in 2023,” said Sprott.