Russia and Kazakhstan Sign Historic Nuclear Agreement
On Thursday, Russia finalized a significant nuclear agreement with Kazakhstan to construct the country’s inaugural commercial power plant, indicating a crucial geopolitical and economic win for President Vladimir Putin.
The deal, worth approximately $16.5 billion, was sealed during talks between President Putin and Kazakh President Kassym-Jomart Tokayev in Astana. Remarkably, this agreement will be largely financed through Russian export credits, which are expected to cover about 85% of the overall expenses.
Construction will be led by Rosatom, Russia’s state nuclear corporation, at a site near the village of Urken, located beside Lake Balkhash in southeastern Kazakhstan. Reports indicate that Rosatom secured the project against other bidders like the China Atomic Energy Corporation and France’s EDF.
This move supports the Kremlin’s ambition to strengthen its influence within Kazakhstan, a former Soviet republic, amidst ongoing Western sanctions. Kazakhstan is noteworthy for being the largest uranium producer globally, according to the World Nuclear Association.
For Kazakhstan, the nuclear facility is a step toward ensuring a steady energy supply. The country has long grappled with an outdated, coal-reliant power infrastructure, facing energy shortages for over twenty years.
“The agreement signed today on the construction of the Balkhash nuclear power plant plays an important role,” President Tokayev remarked during the ceremony.
President Putin emphasized that the project represents a “flagship initiative in peaceful nuclear energy” and asserted that the power plant would greatly aid Kazakhstan’s energy sector, promising affordable and clean energy for both businesses and households. He also mentioned plans for developing wider industries, including education and human resources, alongside the nuclear facility.
The power plant will utilize two advanced VVER-1200 generation III+ reactors, with total development costs estimated at $16.5 billion; around $2 billion will be allocated for safety systems and foundational infrastructure.
The start of construction is slated for 2027, with the first reactor projected to be operational by early 2034. This development comes on the heels of a 2024 referendum in which Kazakh citizens approved the project at the Balkhash site.
However, the shift toward nuclear energy raises concerns among local communities, reminded of the numerous Soviet nuclear tests conducted at Semipalatinsk. These tests, which occurred from 1949 to 1989, left a lingering public health crisis and environmental damage. The aftermath of the 1986 Chernobyl disaster amplified these fears, especially among those who assisted in the cleanup and later faced health issues.
Additionally, both Russia and Kazakhstan recently established a currency swap agreement, signed by the governors of their respective central banks, which added another component to their growing economic partnership.
