China sets record with uranium purchases from Russia
By Tural Heybatov
In May 2024, China set a new record for importing uranium and other radioactive materials from Russia, purchasing products worth $233 million. This volume of purchases was the largest since 2015, according to the Chinese statistical service. In the first five months of 2024, the total purchase volume amounted to $311 million.
Russian enriched uranium is not supplied to China as frequently as other radioactive materials. In 2023, the total volume of radioactive elements supplied to China amounted to $440 million, of which $418 million was enriched uranium. For comparison, in April 2024, China imported enriched uranium worth $68 million, and in November 2023, worth $155 million.
China is actively developing its nuclear energy sector, which requires stable and significant supplies of uranium. In June 2023, the Chinese state-owned company Societe des Mines d'Azelik (SOMINA) resumed uranium mining in Niger after a 10-year hiatus. In November of the same year, a subsidiary of China National Uranium Company Limited signed a contract for the supply of uranium concentrate with the Kazakh company Kazatomprom, helping to meet China's growing demand for clean energy.
According to Ukrainian economist Alexander Okhrimenko, China is increasingly relying on uranium supplies from Russia. "This success is primarily due to significant discounts provided by Moscow, which makes Russian energy resources attractive to the Chinese market amid fierce global competition. Experts estimate the discount size at 30%, although specific data remains confidential," Okhrimenko noted in an interview with News.Az.
Cooperation between Russia and China in uranium supplies strengthens economic ties between the two countries. However, it also increases Russia's dependence as a raw material supplier. Under Western sanctions, Russian companies are limited in their choice of markets, making China a key partner for product sales. The fate of many Russian enterprises depends on the stability of these supplies: if China reduces purchases, it could lead to a reduction in production, Okhrimenko believes.
Expert forecasts indicate that China will continue to increase uranium purchases from Russia, possibly even abandoning imports from other countries. Discounts may increase, making it not only a profitable strategy for Russia but also a necessity for survival on the international stage.
Thus, while cooperation with China brings economic benefits, it also carries risks of long-term dependence for Russia. It is important to analyze the sustainability and balance of this partnership to assess its prospects and potential challenges, Alexander Okhrimenko concludes.
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