Russia has locked in a $16.5 billion nuclear energy deal with Kazakhstan,a win for President Vladimir Putin. The agreement was reached during a meeting in Astana with Kazakh President Kassym-Jomart Tokayev on Thursday.
This project will bring Kazakhstan its first commercial nuclear power plant, set to rise near the village of Ulken by Lake Balkhash in southeastern Kazakhstan. The Russian state nuclear firm,Rosatom,will handle construction,beating out rivals like China National Nuclear Corp.,France’s EDF,and Korea Hydro & Nuclear Power.
A Russian export loan is expected to cover about 85% of the project's costs. This pact boosts Russia's economic presence in Central Asia and fits into its strategy to increase influence in former Soviet states,especially amid ongoing Western sanctions.
As world's largest uranium producer, Kazakhstan looks to stabilize its energy supply with this new plant. For over twenty years, country has struggled with an aging coal-dependent power grid and ongoing electricity shortages. Tokayev stressed the importance of the deal,saying, "The agreement signed today on the construction of the Balkhash NPP has important role."
Putin called the initiative "a flagship project in the field of peaceful nuclear energy," claiming it would significantly boost Kazakhstan's economy by providing affordable,clean energy to businesses and households. He noted the project goes beyond just a power plant; it aims to create an entire industry,including education and training for personnel.
The facility will feature two advanced VVER-1200 Generation III+ reactors. Development costs are pegged at $16.5 billion, with around $2 billion set aside for security systems and foundational work . Construction is set to kick off in 2027,with the first reactor projected to be up and running by early 2034.
This agreement follows a national referendum in 2024, where citizens backed the Balkhash site development. Still,the shift to nuclear energy raises concerns for many locals. Kazakhstan has a painful history with Soviet nuclear tests at the Semipalatinsk site from 1949 to 1989,leaving public health and environmental scars. Distrust in nuclear energy grew after 1986 Chernobyl disaster, which sickened many Kazakh workers involved in cleanup.
Alongside the nuclear deal, Russia and Kazakhstan also set up a currency swap arrangement that day. The agreement was signed by Elvira Nabiullina, Governor of the Bank of Russia,and Timur Suleimenov,Governor of National Bank of Kazakhstan, creating ruble-tenge swap deal.
