Centrus says Russian Federation rescinds license to export LEU to U.S.

In a regulatory filing, Centrus disclosed that on November 18, it received notice from TENEX that on November 14, the government of the Russian Federation passed a decree, effective through December 31, 2025, that rescinded TENEX’s general license to export LEU to the United States or to entities registered in the United States. Accordingly, TENEX is required to obtain a specific export license from the Russian authorities in order for it to make each of the remaining 2024 shipments of LEU to Centrus and for shipments to Centrus in 2025. TENEX has informed Centrus of its plan to seek the necessary export licenses, in a timely manner, to allow it to meet its delivery obligations for the pending Centrus orders. However, Centrus has been informed that there is no certainty whether such licenses will be issued by the Russian authorities and if issued, whether they will be issued in a timely manner. Centrus will be in communication with its customers whose pending orders may be affected and is assessing actions to mitigate adverse impacts. If TENEX is unable to secure export licenses for its pending or future orders, it would affect its ability to meet its delivery obligations to its customers and would have a material adverse effect on its business, results of operations, and competitive position. Note that Pursuant to a 2011 contract between Centrus Energy (LEU) Corp. and TENEX, joint stock company, a Russian government-owned entity, TENEX serves as Centrus’ largest supplier of low enriched uranium, or LEU, for delivery to Centrus’ U.S. and international customers. Following this filing, in after-market trading, shares of Centrus Energy are down by 2.65%.