The Russian state nuclear corporation “Rosatom” uses its Dutch subsidiary to move hundreds of millions of dollars in profits, even amid the war with Ukraine. This is revealed in the recently published annual report of the Amsterdam-based subsidiary.
Part of these funds, through the state company, ends up in Russia’s treasury. Thus, Russia continues to benefit from European dependence on Russian uranium, despite the ongoing conflict with Ukraine. It is precisely because of this dependence that Western countries have so far been reluctant to impose sanctions against “Rosatom.”
“Rosatom” is a leading producer of uranium and a supplier of nuclear energy. Additionally, the company plays a role in the war by managing the captured nuclear plant in Zaporizhzhia. Through its Dutch subsidiary, Uranium One Coöperatief, “Rosatom” engages in nuclear material extraction in Kazakhstan and Tanzania.
Russian State Revenue
Profits from these countries first pass through the Netherlands before being sent on to Russia. In 2022, the Dutch subsidiary generated $240.6 million (€222 million) in profit, with tens of millions being transferred to the parent company in Russia.
The uranium trade and other activities generate significant revenue for the Russian state budget each year. According to the parent company’s annual report, “Rosatom” paid over 291 billion rubles (€3.1 billion) in taxes to the Russian treasury in 2022.
Despite this revenue stream to the Russian state, “Rosatom” has so far escaped European sanctions. The Western nuclear sector remains highly dependent on the company, which holds a 35% share of the global enriched uranium market, making it the largest supplier worldwide.
Recycling
“Russia plays a significant role in the nuclear sector,” stated a representative from Urenco, a uranium enrichment company based in Almelo. “We are witnessing how Western companies are distancing themselves from Russia following the invasion of Ukraine. As a result, there has been an increase in demand for uranium enrichment at Urenco.”
However, fully replacing the Russian segment of the supply chain remains a challenge. This is particularly evident in the recycling of spent uranium, where Russian services are still the sole option. Since 2022, the United Kingdom has been working on establishing a facility that can perform similar recycling functions.
Another area of dependency lies in the Soviet-era nuclear power plants located in the Czech Republic, Slovakia, Bulgaria, Hungary, and Finland. These VVER-type plants have traditionally used Russian fuel. European companies are now actively searching for alternatives, and two months ago, the first Western fuel rods were delivered to Bulgaria.
The European Union has not yet imposed sanctions on “Rosatom” and its affiliated companies. This has allowed Russian uranium to continue being imported into the Netherlands, including to Urenco. In February, the Dutch Authority for Nuclear Safety and Radiation Protection (ANVS) granted several permits for the import of recycled Russian nuclear fuel destined for the Almelo plant.
This recycled uranium originates from a French nuclear reactor. The French send it to Russia, where it is processed and then re-enriched at the Urenco plant in the Netherlands. Therefore, Urenco does not engage in direct business dealings with Russia.
Precautionary Measures of the US
In the United States, calls for imposing sanctions on the Russian nuclear sector are growing stronger, especially after The Wall Street Journal published an article about the increasing role of “Rosatom” in supplying the Russian military.
Now, both political parties in the U.S. are discussing the possibility of imposing sanctions on “Rosatom.” Additionally, the U.S. plans to introduce a ban on the import of Russian uranium starting in 2028, which could significantly impact Russia’s nuclear industry.
