Russia and Kazakhstan inked a $16.5 billion agreement Thursday to build Central Asia’s first nuclear power plant, handing state nuclear giant Rosatom a construction mandate that has been two decades in the making.
The deal was signed in Astana during Vladimir Putin’s official visit, where the Russian and Kazakhstani presidents also formalised a separate accord for Moscow to extend export credit financing toward the project. According to Kazakhstan’s atomic energy agency, Russia is expected to cover roughly 85% of the total cost through that credit, about $14 billion of the $16.5 billion price tag. The remaining cost includes approximately $2 billion set aside for security and infrastructure.
Rosatom beat out China National Nuclear Corporation, French utility EDF, and Korea Hydro & Nuclear Power to claim the lead constructor role. Kazakhstan had named Rosatom its preferred builder in June 2025.
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The plant will carry two VVER-1200 III+ reactors and will be constructed near the village of Ulken on the shores of Lake Balkhash in southeastern Kazakhstan. The lake’s capacity to supply cooling water was a key factor in the site selection. Construction is scheduled to begin in 2027, with the first reactor targeted for commissioning in early 2034. Officials aim to have 2.4 gigawatts of nuclear generating capacity online by 2035 as part of Kazakhstan’s long-term energy diversification push.
That push is driven by a supply crunch that is already biting. Kazakhstan relies predominantly on coal for electricity, and its ageing generating fleet is struggling to keep up with demand.
The nuclear accord was not the only deal struck Thursday. Putin and Tokayev also discussed expanding Russian crude oil exports to China through Kazakhstan by an additional 2.5 million tons, and held broader talks covering trade, investment, and regional infrastructure. The two leaders signed a joint statement referencing what they called the “seven pillars of friendship.”
The Balkhash plant also will not stand alone. Kazakhstan has already approved a second nuclear facility, with state-run CNNC named as its lead constructor.
Kazakhstan is the world’s largest uranium producer. The Balkhash NPP is expected to rank among the largest infrastructure developments in Central Asia upon completion.
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