Kazakhstan’s President Kassym-Jomart Tokayev has accepted the resignation of the Government in an attempt to quell unrest in the country after protests against the sharp rise in the price of fuel turned violent.

Most of the population converted their cars to run on LPG which had a price cap, but on 1 January the government said the low price was unsustainable and lifted the cap, effectively doubling the cost of the fuel overnight.

Tokayev also declared a two-week state of emergency in the Central Asian nation’s biggest city, Almaty, and said some price caps would be restored after crowds in the thousands gathered in the streets across several towns and cities – including oil producing hubs.

Kazakhstan produces 43% of global uranium

But it’s not just the fate of the country’s oil rich reserves that have global heads turning.

Kazakhstan also produces around 43% of the world’s uranium, with the country home to the world’s largest uranium producer, Kazatomprom.

Some analysts are predicting the political unrest could send uranium prices soaring.

And traders are on the edge of their seats forecasting the spot price could hit $140, with Kazatomprom having already warned of supply issues this year.

Kazatomprom backed physical uranium fund

In October 2021, ANU Energy OEIC, backed by Kazatomprom, joined the physical uranium fund party.

Like the Sprott Physical Uranium Trust, the fund will hold physical uranium as a long-term investment, with its initial purchases financed through the founders’ round investment totalling $US50m (48.5% from Kazatomprom, 48.5% from the National Investment Corporation of the National Bank of Kazakhstan (NIC), and 3% from fund manager Genchi Global).

The fund is then expected to raise capital of up to $US500 million from institutional and/or private investors, with the proceeds to be used for additional uranium purchases.

 At the time ANU Energy said the Fund would be operating in an environment of tightening supply, driving positive benefits for its stakeholders.

And that supply looks set to tighten even further as the world waits to see how the situation in Kazakhstan will pan out.