Putin secures $16.5B nuclear deal with Kazakhstan in major strategic win: reports

(SeaPRwire) –   Multiple reports indicate that Russia and Kazakhstan inked a landmark nuclear deal on Thursday to construct the Central Asian nation’s first-ever commercial power plant, a major geopolitical and economic victory for Russian President Vladimir Putin.

Reuters noted that the $16.5 billion project, finalized during high-level bilateral negotiations in Astana between Putin and Kazakh President Kassym-Jomart Tokayev, will receive support from a Russian export loan covering roughly 85% of the total expenditure.

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

According to the news outlet, Rosatom secured the primary construction mandate after outcompeting bidders including China National Nuclear Corp., France’s EDF and Korea Hydro & Nuclear Power.

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

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

For Kazakhstan, the facility is intended to stabilize long-term domestic energy supplies, as the country has struggled with aging coal-reliant power infrastructure and electricity deficits for more than two decades.

“The agreement signed today regarding the construction of the Balkhash NPP holds significant importance,” Tokayev said at the signing ceremony.

Putin called the deal “a flagship project in the field of peaceful nuclear energy” and noted that “the commissioning of the plant will make a notable contribution to Kazakhstan’s energy supply, helping to provide businesses and households with affordable and clean energy.”

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

Per 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 roughly $2 billion of the total sum will be allocated toward security systems and foundational infrastructure.

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 shift to atomic energy is a sensitive topic for local residents. 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.

Public distrust grew further in the wake of the 1986 Chernobyl disaster in Ukraine, after which tens of thousands of Kazakh workers fell ill while assisting in cleanup operations.

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

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