The U.K. government has allocated £75 million ($90.5 million) to boost nuclear fuel production in the kingdom. According to a statement released Monday by Britain's Department for Business, Energy and Industrial Strategy, this is being done to reduce dependence on fuel supplies from Russia.

In June, G7 leaders agreed to take concerted action to reduce dependence on supplies of nuclear and related civilian goods from Russia, including seeking to diversify uranium supplies and nuclear fuel production capacity. Russia currently owns 20% of the world's uranium refining capacity and 40% of its enrichment capacity, the ministry said. The UK Nuclear Fuel Fund of £75m will enhance the country's energy security by encouraging investment in the development and commercialisation of nuclear fuel production within the country, including through the introduction of advanced fuel technologies.

The government funding should go towards creating processing capacity in the kingdom for both newly mined and regenerated uranium. For this purpose, £13 million ($15.7 million) is allocated to nuclear production in English Preston, which provides fuel for the British gas-cooled reactors. Companies whose projects will contribute significantly to the diversification of the nuclear fuel market are eligible for £50m ($60m). First of all, we are talking about the production in the UK of fuel for light water reactors, as well as new types of fuel for small modular reactors (SMRs). Among other things, these include HALEU, a metallic, high-strength, low-enriched nuclear fuel.

Tom Greatrex, head of the British Nuclear Industry Association, expressed hope that the government project would eventually allow the UK to increase nuclear fuel exports.