The UK Government has finalised a £210m ($282m) financing package through UK Export Finance (UKEF) to guarantee loans to secure Ukraine’s electricity supply. The agreement, announced by UK Prime Minister Keir Starmer at the G7 summit, enables Urenco to deliver enriched uranium to Ukraine’s state nuclear energy operator, Energoatom, ensuring the continued operation of its nuclear plants for the next two years.
Energoatom generates over 50% to 60% of Ukraine’s electricity, which is crucial for domestic infrastructure. The initiative builds on previous bilateral fuel agreements, driving total UK energy security financing for Ukraine to more than £490m. Over one-third of the contracted uranium will be processed at Urenco’s plant in Chester, North-West England, directly protecting 650 specialised local roles and supporting a wider domestic supply chain of 4,500 jobs.
The deal was agreed between Starmer and Ukrainian President Volodymyr Zelenskyy during their meeting at Downing Street the week before.
Ukraine has been negotiating with the Urenco Group to purchase enriched uranium since April 2022. After Ukraine completely abandoned Russian nuclear fuel, the only supplier was US Westinghouse, which uses enriched uranium supplied by Urenco.
In 2023, Energoatom and Urenco signed a contract to supply enriched uranium fuel for Ukrainian NPPs under which the Urenco will supply enriched uranium until 2035, with the option to extend the contract until 2043.
