Nuclear Power Station. (Wikipedia)
Recent news Goldman Sachs and Deutsche Bank were planning to sell off their raw uranium supplies has put a spotlight on Russian nuclear deals that went relatively unnoticed in the West.
An investment strategist observed recent Russian nuclear deals including a pact with Sri Lanka are part of a greater geopolitical game to lockup the market for nuclear fuel, which may increase global uranium prices. He was speaking on the Canadian Broadcasting Corporation’s (CBC) radio show “The Current.”
Marin Katusa, Chief Investment Strategist at Casey Research says Russian nuclear pacts with Sri Lanka, Hungary, Belarus and the Middle East go beyond nuclear fuel sales.
“They’re not just selling uranium, they are going and building these nuclear reactors, signing long-term off takes and they are also providing capital to build these nuclear reactors. And what that will do in a year and a half — people are going to wake up and see a major increase in the cost of uranium,” he said.
One in every 10 homes in the United States is powered by Russian fuel. He described the situation as a “national security issue” for the United States.
“What Russia is doing now, they control over 45% of the global uranium supply. They control over 45% of the enrichment of uranium globally,” he said on the radio show.
