Russia and Kazakhstan will sign nuclear power deal during Putin trip, Kremlin says

Russian President Vladimir Putin is set to oversee the signing of a significant agreement outlining the construction of a nuclear power plant in Kazakhstan during his visit this week, the Kremlin announced Tuesday. This move marks a pivotal step for Kazakhstan, a nation rich in oil and gas, which has not generated nuclear power since the decommissioning of its BN-350 reactor in 1999.

Kazakhstan, with a population of 20.5 million, has set ambitious goals for its energy sector. Following a referendum in 2024, the country aims to establish 2.4 gigawatts of nuclear capacity by 2035. This initiative is supported by plans from China National Nuclear Corporation (CNNC), which also intends to build a nuclear plant in the country.

Kremlin aide Yury Ushakov also indicated that discussions during Putin's visit would include enhancing the transit of Russian oil to China through Kazakhstan. Last year, an agreement was made to increase oil exports via the Atasu-Alashankou pipeline by 2.5 million tons annually, reaching 12.5 million metric tons. However, industry sources suggest this increase has not yet been realized.

Key agreements are expected to cover the main parameters for the nuclear power plant's construction and its financing. Russia is slated to provide 85% of the project's funding through a state export loan, with the plant anticipated to be commissioned between 2035 and 2036. While Kazakhstan is a major uranium producer, its current electricity supply relies heavily on coal, supplemented by hydroelectricity and a growing renewable energy sector.

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Key agreements will be signed during (Putin's) visit on the main parameters for building a nuclear power plant and on financing the project through a Russian state export loan.