Now that Crimea has voted to unite with Russia and Vladimir Putin has welcomed Crimea with open arms, the Western half of the world, especially the United States and the European Union, are talking at lengths about imposing sanctions on Russia in order to bring Vladimir Putin to his senses.
However, the task seems easier said than done. The United States is simply not in a position to impose long-term sanctions on Russia. Economic and political ties between the United States and Russia are surely not exemplary. Yet, one key American industry relies heavily on a particular import from Russia: fuel for nuclear power plants. American dependency on Russia for its nuclear fuel is not a new development. It dates back to the early 1990s, when the HEU-LEU scheme was launched after the demise of the Soviet Union. Under this scheme, highly enriched uranium (HEU) from Russian nuclear warheads is processed into low enriched uranium (LEU) for use as fuel for American nuclear power plants.
While there are plans of reducing the need for nuclear energy, the United States still receives 100 GW of its power from nuclear power plants (compare this with Russia’s nuclear energy production of 230 GW). As a result, during 2014, 48 million pounds of uranium will be needed to fuel America’s nuclear power plants. Going by data released by the US Energy Information Administration (EIA), the total uranium Oxide produced within the United States is roughly 4.8 million pounds. Barely 10% of the total demand.