Russia to build Kazakhstan’s first nuclear plant in $16.5B deal

Russia has secured a significant energy partnership with Kazakhstan, agreeing to construct the Central Asian nation's first nuclear power plant in a deal valued at $16.5 billion. This agreement marks a major expansion of Moscow's influence in the region's power infrastructure.

Kazakhstan, the world's largest uranium producer, has considered nuclear power for over two decades. A 2024 referendum confirmed public support for a plant, designating the village of Ulken near Lake Balkhash as the site. Kazakh President Kassym-Jomart Tokayev thanked Russian President Vladimir Putin for his support, stating the plant will significantly contribute to the nation's energy supply. Putin affirmed the importance of the Balkhash Nuclear Power Plant (NPP) agreement.

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The agreement signed today on the construction of the Balkhash NPP has an important role.

Russia's state nuclear corporation, Rosatom, won the contract over competitors including China National Nuclear Corporation, French utility EDF, and Korea Hydro & Nuclear Power. Kazakhstan's atomic energy agency head, Almasadam Satkaliyev, detailed that the plant will feature two VVER-1200 III+ reactors, with an additional $2 billion allocated for security and infrastructure. Construction is slated to commence in 2027, with the first reactor anticipated to be operational by early 2034.

Despite Kazakhstan's history with Soviet nuclear weapon testing, which rendered areas uninhabitable and caused health issues, the country faces growing energy demands. It relies heavily on aging coal-powered plants, supplemented by some renewables and hydroelectric power. Kazakhstan is also a net importer of electricity, primarily from Russia. The nation has approved a second nuclear plant project, with China National Nuclear Corporation selected as the main constructor.

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Putting the plant into operation will make a significant contribution to the energy supply of the Kazakh economy.