Russia and Kazakhstan signed a nuclear agreement on May 28, 2026, to construct Kazakhstan's first commercial power plant, valued at $16.5 billion. The agreement was finalized during bilateral talks in Astana between Russian President Vladimir Putin and Kazakh President Kassym-Jomart Tokayev. The project will be primarily financed by a Russian export loan covering approximately 85% of the total cost, as reported by Reuters.
Rosatom, Russia's state nuclear corporation, will oversee the construction near Ulken village in southeastern Kazakhstan, along Lake Balkhash. The company secured the contract after competing against China National Nuclear Corp., France’s EDF, and Korea Hydro & Nuclear Power.
This agreement is seen as a strategic move by Russia to enhance its economic and geopolitical influence in former Soviet states amid ongoing Western sanctions. Kazakhstan, the world's largest uranium producer, aims to stabilize its domestic energy supply, which has been challenged by outdated coal infrastructure and electricity shortages for over two decades.
President Tokayev emphasized the significance of the agreement for Kazakhstan's energy future, while President Putin described the project as a flagship initiative in peaceful nuclear energy. The facility will consist of two advanced VVER-1200 Generation III+ reactors, with total development costs including $2 billion earmarked for security systems and foundational infrastructure.
Construction is set to commence in 2027, with the first reactor expected to be operational by early 2034. The project follows a 2024 national referendum in which Kazakh voters approved the development at the Balkhash site. However, the shift towards nuclear energy raises concerns among local citizens due to the historical context of Soviet nuclear tests conducted in Kazakhstan, which have left lasting public health and environmental issues.