Energoatom Photo: mezha
July 17, 2024 — Ukrainian company Energoatom has signed a £181 million loan agreement (approximately 10 billion UAH at current exchange rates) with international consortium Deutsche Bank and Barclays Bank. The announcement was made by the press service of the Ministry of Energy of Ukraine.
Loan Guaranteed by the UK Government
The loan will be provided for five years with a guarantee from the UK government through the Export Credit Agency (UKEF). The funds will be used to purchase nuclear materials under a contract with the British company Urenco.
Collaboration with Urenco: Enriched Uranium for Ukraine’s Nuclear Power Plants
Following the cessation of Russian nuclear fuel supplies, Westinghouse Electric Sweden has become the sole supplier of fuel assemblies for Ukrainian nuclear power plants. Urenco supplies the enriched uranium used in Westinghouse fuel production. Urenco Group specializes in uranium enrichment using gas centrifuge technology at its facilities in Germany, the Netherlands, the UK, and the US.
Contract for Uranium Hexafluoride Supply
In November 2023, Energoatom signed a contract with Urenco Enrichment Company for the supply of enriched and natural uranium hexafluoride (UF6) from 2026 to 2035, with an option to extend until 2043. Uranium hexafluoride is a key chemical compound used as a raw material in the production of nuclear reactor fuel.
Importance of Collaboration and Market Trends
Ukraine’s Energy Minister, Herman Halushchenko, emphasized the significance of long-term cooperation with British partners, stating: “Continuing our partnership with Urenco not only strengthens our energy independence but is also crucial for the future development of the nuclear industry globally.”
Uranium prices have increased by 233% over the past five years, significantly surpassing the price growth of other metals such as lithium, copper, silver, and gold. Ukraine continues to export all mined uranium to Canada for further conversion and supply of natural uranium hexafluoride (UF6) for enrichment.
This move is vital for ensuring the stability of Ukraine’s energy sector and enhancing its independence amid global energy market changes.
