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Report on the Effect the Low Enriched Uranium Delivered Under the Highly Enriched Uranium Agreement Between the USA and the Russian Federation has on the Domestic Uranium Mining, Conversion, and Enrichment Industries and the Ops of the Gaseous Diffusion

The successful implementation of the HEU Agreement remains a high priority of the U.S. Government. The agreement also serves U.S. and Russian commercial interests. HEU Agreement deliveries are an important source of supply in meeting requirements for U.S. utility uranium, conversion, and enrichment. With higher and increasingly unstable market prices for uranium and declining uranium supply from secondary markets, HEU Agreement deliveries help to provide an adequate uranium supply at reasonable prices. In addition, the predictability of measured uranium product deliveries under the HEU Agreement has reduced uncertainty for U.S. producers and suppliers who are moving to expand uranium, conversion, and enrichment capacity to meet future demands from a potential increase in domestic nuclear power generation capacity.

While initial uranium deliveries under the HEU Agreement had a limited effect on the commercial nuclear fuel markets, actions subsequently taken by the U.S. Department of Energy (DOE) and Congress to avoid an adverse material market impact from future HEU Agreement deliveries have been effective. Successful implementation of the HEU Agreement to date is also attributable to the efforts of the U.S. and Russian Executive Agents for the Government-to-Government Agreement (DOE and Rosatom, respectively), the Executive Agents for the commercial agreement (USEC and Techsnabexport), and the U.S. industry. Recognizing the vital importance of the nuclear fuel cycle to U.S. energy and national security, DOE will continue to work with Congress and industry to ensure the HEU Agreement’s continued success in stabilizing increasingly tight nuclear fuels markets.