The United States passed a bill on Monday temporarily banning Russian imports, however, it includes loopholes that enable US buyers to continue their trade relationship with Moscow. The law was approved by the US Congress and signed by President Joe Biden on May 13.

Although the legislative norm is valid and is expected to be lifted on December 31, 2040, the US Department of Energy in consultation with the State Department and Department of Commerce has the right to continue uranium deliveries with Russia in cases that serve Washington's interests until January 1, 2028.

The initiative to ban Russian uranium imports was initially submitted by Republican Congresswoman Cathy McMorris Rodgers to the US House of Representatives in February 2023, backed by Wyoming Senator John Barrasso in March with the introduction of a similar initiative to the Senate.

US reliance on Russian imports and production decline

Russian state atomiс energy corporation Rosatom described the latest law as discriminatory and non-market, noting the politically motivated decision is intended to destroy the stable operation of the global market for nuclear fuel cycle goods and services.

The US State Department claims that the law seeks to reduce and eliminate the country's reliance on Russian uranium, a nuclear energy actively used in the US.

Nuclear energy constitutes 20% of the United States' energy mix however, the country is only able to provide themselves with 30% of nuclear fuel. Meanwhile, Russia supplies 20% of uranium to the US, according to the Department of Energy, highlighting that Rosatom provides fuel feedstock for more than 90 commercial reactors in the US, making it the nation's top foreign supplier.

Therefore, the bill was ultimately adopted to impose additional US sanctions on Russia, reducing the country's uranium export, and attempting to revive its uranium industry amid declining domestic production. In addition to the ban, the bill includes a $2.7 billion investment provision aimed at enhancing domestic uranium enrichment capabilities in the United States.

Rosatom is essentially the global leader in the nuclear technology field, aiming to continue developing foreign relations and partnerships with institutions interested in long-term cooperation. 

Russia's oil revenues on the rise in defiance of Western sanctions

Russia’s oil revenue exports surged by almost 50% in June 2024 compared to 2023 due to the country’s flagship Urals adaptation to Western sanctions, Bloomberg reported on July 3.

In June, Moscow's crude oil sales revenues saw a significant increase. Oil-related taxes reached 590.6 billion rubles ($6.7 billion), up from 402.8 billion rubles ($4.5 billion) in June 2023, according to Bloomberg’s calculations, based on the Russian Finance Ministry's financial data.

The figures revealed a 41% increase in the total oil and gas profits to 746.6 billion rubles ($8.4 billion), attributed to higher prices for Russia’s key export Urals blend. The ministry calculated June taxes based on the Urals price of $67.37 a barrel, up from $53.50 a year ago.

The imposition of a price cap and embargo on Russian oil by Western governments aimed to collapse the country’s economy, while also allowing Russian crude oil to flow into the international markets. 

Russia retaliated to the West’s sanctions by redirecting most of its energy exports to Asia, selling well above the imposed price cap, primarily in India and China.

The financial report also revealed that budget revenues from Russia's oil and gas sectors experienced a remarkable surge of 73.5% from January to May this year, compared to the first five months of 2023. The generated profit from oil and gas sales during this period totaled 4.95 trillion rubles ($55.7 billion), and it is expected to reach 10.99 trillion rubles ($125 billion) this year.