Sanctions resulting from the confrontation between Western countries and Russia due to the Ukraine conflict have created obstacles for supplies to Western companies, and Kazakhstan is ready to reorient towards Asia, said the head of Kazakhstan’s state-owned mining company "Kazatomprom," Meirzhan Yusupov.
"It is much easier for us to sell most, if not all, of our products to our Asian partners - I wouldn’t name a specific country...
They can consume almost all of our products or the products of our northern partners," he said in an interview with the Financial Times.
However, he added: "It’s much easier to sell to them, but we don’t want to put all our eggs in one basket."
The mining company, based in Astana and 75% owned by the state, wants to maintain a diverse customer base, including U.S. and European utilities, even though delivering materials through the traditional, cheaper route via St. Petersburg is no longer feasible due to sanction risks.
"Kazatomprom," whose shares are listed in Astana and London, is trying to establish an alternative delivery route through the Caspian Sea, Azerbaijan, Georgia, and the Black Sea, which will be more expensive.
Kazakhstan produces 43% of the world’s uranium, equivalent to the market share of oil held by OPEC. However, Russia’s potential influence over its Central Asian neighbor is causing growing concern among Western utilities and industry partners.
Rosatom, Russia’s nuclear monopoly, holds stakes in five of Kazatomprom’s 14 mines. According to Yusupov, under these agreements, Rosatom receives 20% of the country’s uranium production.
According to the latest annual report, last year Kazatomprom sent 49% of the uranium under its control to the Asian market, 32% to Europe, and 19% to the U.S. market.
CentralasianLIGHT.org
September 11, 2024