Russia Secures $16.5B Nuclear Deal on Kazakhstan’s Doorstep in Major Pact, Reports Say
(SeaPRwire) - Per multiple reports, Russia inked a landmark nuclear agreement with Kazakhstan on Thursday to construct the Central Asian country’s first ever commercial nuclear power plant, representing a major geopolitical and economic win for President Vladimir Putin. As reported by Reuters, the $16.5 billion project, formalized during high-level bilateral discussions in Astana between Putin and Kazakh President Kassym-Jomart Tokayev, will be supported by a Russian export loan that covers roughly 85% of the total cost. Rosatom, Russia’s state-owned nuclear corporation, will oversee construction work near the village of Ulken in southeastern Kazakhstan, along the shores of Lake Balkhash. The outlet noted that Rosatom secured the main construction contract after outcompeting bids from China National Nuclear Corp., France’s EDF and Korea Hydro & Nuclear Power. The pact directly furthers the Kremlin’s efforts to solidify its economic and geopolitical clout across former Soviet states amid ongoing Western sanctions. Data from the World Nuclear Association shows that Kazakhstan is the largest uranium producer across the globe. For Kazakhstan, the facility is designed to stabilize long-term domestic energy supplies, as the country has grappled with aging coal-dependent power infrastructure and electricity shortages for more than two decades. "The agreement signed today on the construction of the Balkhash NPP has an important role," Tokayev stated during the signing ceremony. Putin described the deal as "a flagship project in the field of peaceful nuclear energy" and noted that "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 further added. Per Kazakhstan’s atomic energy agency, the large-scale facility will be equipped with two advanced VVER-1200 Generation III+ reactors. Total development costs are projected at $16.5 billion, with officials noting that approximately $2 billion of the total sum will be earmarked for security systems and foundational infrastructure. Construction work is scheduled to start in 2027, and the first reactor is slated to enter operation by early 2034. The project comes after a 2024 national referendum where Kazakh voters formally approved development work at the Balkhash site. However, the shift to atomic energy is a sensitive issue for local residents. The country hosted hundreds of Soviet nuclear weapons tests at the Semipalatinsk site between 1949 and 1989, which left behind severe public health crises and environmental contamination. Public distrust grew further following the 1986 Chernobyl disaster in Ukraine, after which tens of thousands of Kazakh workers fell ill while assisting with cleanup operations. Per 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. This article is provided by a third-party content provider. SeaPRwire (https://www.seaprwire.com/) makes no warranties or representations regarding its content. Category: Top News, Daily News SeaPRwire provides global press release distribution services for companies and organizations, covering more than 6,500 media outlets, 86,000 editors and journalists, and over 3.5 million end-user desktop and mobile apps. SeaPRwire supports multilingual press release distribution in English, Japanese, German, Korean, French, Russian, Indonesian, Malay, Vietnamese, Chinese, and more.
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