Centrus Energy (LEU, Financial) recently disclosed that it received a notification from Techsnabexport (TENEX), a Russian state-owned nuclear fuel supplier, regarding a new Russian government order. This order revokes the license for exporting low-enriched uranium to the United States until the end of 2025. Following this announcement, Centrus Energy's stock experienced a pre-market drop of 3.22%.
TENEX is seeking the necessary export licenses but remains uncertain about whether or when Russian authorities will grant them. If TENEX fails to secure these licenses, Centrus Energy may face challenges fulfilling its delivery obligations to customers.
Russia, the world's largest supplier of enriched uranium, recently imposed temporary restrictions on uranium exports to the U.S. after the U.S. banned imports from Russia. TENEX requires specific export licenses from Russian authorities to complete shipments for the remainder of 2024 and all of 2025's low-enriched uranium.
