Putin signs $16.5 billion nuclear deal to build Kazakhstan’s first plant

Russia signed a landmark nuclear agreement with Kazakhstan on Thursday to build the Central Asian country’s first-ever commercial power plant, marking a major geopolitical and economic victory for President Vladimir Putin, according to reports.

The $16.5 billion project, signed during high-level bilateral talks in Astana between Putin and Kazakh President Kassym-Jomart Tokayev, will be backed by a Russian export loan covering roughly 85% of the total cost, Reuters reported.

Rosatom, Russia’s state-run nuclear corporation, will lead construction near the village of Ulken in southeastern Kazakhstan along the shores of Lake Balkhash.

Rosatom secured the primary construction mandate after beating out competition from China National Nuclear Corp., France’s EDF and Korea Hydro & Nuclear Power, the outlet said.

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Russian President Vladimir Putin, left, stands alongside Kazakh President Kassym-Jomart Tokayev after his arrival at the airport, Wednesday, in Astana, Kazakhstan. (Getty Images)

The pact directly advances the Kremlin’s efforts to anchor its economic and geopolitical influence within former Soviet states amid Western sanctions.

According to the World Nuclear Association, Kazakhstan is the world’s largest producer of uranium.

For Kazakhstan, the facility is intended to stabilize a long-term domestic energy supply, since it has struggled with old coal-reliant power infrastructure and electricity deficits for more than two decades.

“The agreement signed today on the construction of the Balkhash NPP has an important role,” Tokayev said at the signing ceremony.

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The $16.5 billion nuclear plant project was signed during high-level bilateral talks in Astana between Putin and Kazakh President Kassym-Jomart Tokayev. (Getty Images)

Putin called the deal “a flagship project in the field of peaceful nuclear energy” and said “the commissioning of the plant will make a significant contribution to the energy supply of the Kazakh economy, helping to provide businesses and households with affordable and clean energy.”

“I would like to point out that, as we agreed with the president of Kazakhstan, we are not simply talking about the creation of a nuclear power plant or construction; we are talking about the creation of an entire industry, including education, personnel training, and so on,” he added.

According to Kazakhstan’s atomic energy agency, the massive facility will feature two advanced VVER-1200 Generation III+ reactors.

Total development costs are estimated at $16.5 billion, with officials noting that approximately $2 billion of the sum will be allocated toward security systems and foundational infrastructure.

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Putin called the deal “a flagship project in the field of peaceful nuclear energy.” (Getty Images, File)

Construction is scheduled to begin in 2027, with the first reactor slated to become operational by early 2034.

The project follows a 2024 national referendum in which Kazakh voters formally approved development at the Balkhash site.

However, the pivot to atomic energy is sensitive for local citizens. The nation hosted hundreds of Soviet nuclear weapons tests at the Semipalatinsk site between 1949 and 1989, leaving behind severe public health crises and environmental pollution.

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Distrust increased over the 1986 Chernobyl disaster in Ukraine, after which tens of thousands of Kazakh workers fell ill assisting in cleanup operations.

According to Bloomberg, the two countries also signed a currency swap arrangement Thursday.

Bank of Russia Gov. Elvira Nabiullina and National Bank of Kazakhstan Gov. Timur Suleimenov signed the ruble-tenge swap agreement.