U.S. sanctions on Russia shifted power east, leaving China in a prime position to capitalize on America's miscalculation ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

Katusa's Investment Insights October 18, 2024 Sanctions Gone Wrong: How Punishing Russia Put China In Power By Marin Katusa China Now Controls U.S. Nuclear Supply: Sanctions on Russia shifted uranium to China, threatening U.S. energy security. 85% of Kazakhstan’s Uranium Goes East: Sidelining the U.S. America’s Energy at Risk: U.S. utilities face higher costs and growing Eastern dependence. Immediate domestic action needed. Special Situations Stock Alert Coming: A U.S.-based uranium company is uniquely positioned to benefit from this geopolitical shift—details to follow. What I’m about to reveal has never been published before, and in just weeks, it will be the focus of U.S. Senate hearings. This issue is so critical, both Democrats and Republicans will be forced to rally behind it. The sanctions against Russian uranium were supposed to cripple Russia’s influence over America’s nuclear energy supply. On the surface, they worked—but there's a much darker story unfolding beneath the headlines.  While one U.S. company was granted a government exemption to continue importing Russian enriched nuclear fuel, something far more troubling happened… America’s energy future is now in the hands of China… thanks to sanctions meant to cripple Russia. The fallout has completely reshaped the global nuclear fuel supply chain. And the consequences for America’s energy security are severe. The Fallout of U.S. Sanctions Before sanctions, the nuclear fuel cycle was predictable and looked like this: But the U.S. crackdown on Russian uranium set off a chain reaction that no one saw coming. 1. Kazakhstan’s Uranium Is Now Flowing East: Since the sanctions, the amount of uranium from Kazakhstan flowing to Russia and China has surged from under 50% to a staggering 85%. 2. China Is Now Supplying U.S. Utilities: As Russia faced sanctions, China quietly stepped in, becoming a major supplier of enriched uranium products (EUP) to U.S. nuclear power utilities like Constellation Energy. The very fuel America needs is now flowing through China’s hands. A result of the sanctions against Russia, the flow of EUP became: How Much Has China Benefited? It’s worse than most people realize. The U.S. Energy Information Administration (EIA) has withheld critical data on just how much enriched uranium is being imported from China. Meanwhile, the U.S. government has slapped a 25% tariff on all EUP (enriched uranium products) coming from China. But even with the tariffs, the damage is done—China is now a key player in U.S. energy, and it’s leveraging this position for maximum gain. Russia and China are playing the long game… They aren’t sitting idly by, they’ve signed long-term agreements with Kazakhstan for uranium supplies, locking in control over the global uranium market. Here’s the cold reality: Cheap uranium is gone—what was once affordable is now a premium commodity. Russia and China are tightening their grip, securing long-term contracts that U.S. utilities simply can’t compete with. They offer more than just uranium—government benefits and additional perks that American utilities can’t match, further driving up competition. America’s Energy Security Is Entering “Code Red” When Russia unexpectedly halted shipments of enriched uranium to U.S. utilities, it caught the American nuclear sector off guard. But here's where it gets worse: Russia doesn’t need to ship directly to the U.S. anymore… China has stepped in, willing to pay more and continue the flow of Russian-enriched material. The result? U.S. utilities will be forced to pay a much higher price for the enriched uranium they need. This increases their dependency on China—a situation that poses a direct threat to national security. Without immediate action, America’s energy future hangs in the balance. The solution? The U.S. must urgently expand its domestic uranium production and reduce dependency on Russian and Chinese imports. Companies that have existing U.S.-based operations, are uniquely positioned to meet the rising demand and benefit from the shifting geopolitical landscape. Regards, Marin Katusa For Real-Time Market Alerts, Follow Us: Share Tweet Share Copyright © 2024, Katusa Research, All rights reserved. PLEASE READ: RETURNS AND TESTIMONIAL DISCLOSURE  Contact Us | Privacy | Terms & Conditions Details and Disclosures Investing can have large potential rewards, but it can also have large potential risks. You must be aware of the risks and be willing to accept them in order to invest in financial instruments, including stocks, options, and futures. Katusa Research makes every best effort in adhering to publishing exemptions and securities laws. By reading this, you agree to all of the following: You understand this to be an expression of opinions and NOT professional advice. You are solely responsible for the use of any content and hold Katusa Research, and all partners, members, and affiliates harmless in any event or claim. If you purchase anything through a link in this email, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything.

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