Nuclear Profits and Russian Aggression

The looming conflict in Ukraine is causing pain without a single shot being fired. 

That’s what Europe has been learning over these past few weeks as it grapples with an energy crisis that is a direct result of the tensions with Russia. 

Throughout the continent, customers are having to deal with higher energy bills to get through the winter. Much of Europe relies on natural gas imported from Russia. As a result, Russia has been exercising its leverage and tightening supply. That’s led to higher prices for suppliers and higher prices for customers.

Europe’s winter season ends in March, and there’s no real indication how the conflict with Russia will shape up. The US has been helping Europe ease some of those supply woes, but this couldn’t have happened at a worse time. 

Not only is there a threat of war, but much of Europe is divided about the role of nuclear power.

It’s been mentioned in these pages before, but as a refresher, Germany is the de facto leader of the European countries that are against nuclear power. It was the policy of Chancellor Angela Merkel. Her successor, Olaf Scholz, has promised to uphold that policy. It’s joined by Italy, Spain, Belgium, and Switzerland. 

On the other side of that, France, Hungary, and Finland are actively building nuclear plants. Countries like Poland, Romania, and the Netherlands are interested in doing so. 

Countries in favor of the technology believe that it’s the only way to curb climate change while keeping up with demand. The countries against the practice state that their energy needs can be met using methods like wind and solar. 

It’s unlikely that the whole of the EU will ever agree on what should be done about adopting nuclear power, but this story is still one worth paying attention to. For one, it’s at the heart of a changing geopolitical landscape. 

Petroleum and natural gas are some of Russia’s biggest exports. While much of Europe relies on those resources, Russia doesn’t always have the friendliest relationship with its neighbors. We’ve seen that many times over the past few decades. 

Many in Europe point to blackouts and climbing prices as proof that the continent should be less reliant on foreign sources for their power needs. That’s why we’re seeing proposed plans to label nuclear energy as green, making it easier to invest in. 

It’s also why many European countries are not just considering building new traditional power plants, but Small Modular Reactors (SMRs), too. They can be made faster and cheaper than normal plants and can be put in places normal plants can’t. 

Even as some countries move forward with plans to generate their own power, they won’t see results until at least next decade. Still, environmental and political factors are pushing nuclear technology to the forefront. That’s something that’s going to benefit uranium producers who have already been seeing their fortunes turn around over the last year or so. 

While the US isn’t dealing with the same level of political headaches regarding nuclear power as Europe, the trends are still pointing to it becoming more common here. The Biden administration champions nuclear, and so did the Trump administration. A recent survey conducted by the Associated Press found that two-thirds of the states are looking at how to use nuclear power to replace coal, oil, and gas. 

If nothing else, it means nuclear power might have an easier time being accepted throughout the US than in Europe. 

And that means big things for one uranium producer who will be able to help fuel these reactors. 

The price of uranium has been steadily climbing over the past two months, and this emerging bull market is likely to take off as nuclear becomes more accepted. 

When that happens, this will be the company you want to back. Learn all the details about why this company will thrive in a nuclear future.