Russia Moves to Lock In Central Asia: Putin Signs Nuclear Deal With Kazakhstan

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A New Nuclear Era for Kazakhstan

Kazakhstan has been without nuclear power for more than a quarter century. Its only reactor, the BN-350 on the Caspian Sea coast, was shut down in 1999. Since then, the country of 20.5 million people has relied heavily on coal for its electricity – a situation that many Kazakhstanis have long wanted to change.

In 2024, Kazakh citizens voted in a national referendum to approve the construction of new nuclear plants. The government then set an ambitious target: 2.4 gigawatts of nuclear capacity by 2035. Now, the first concrete steps toward that goal are being taken.

Putin's Visit: Signing Day for a Billion-Dollar Project

Russian President Vladimir Putin is visiting Kazakhstan this week. According to the Kremlin, the central item on the agenda is the formal signing of an agreement on the construction of a new nuclear power plant. The facility, to be called Balkash Nuclear Power Plant, will be located in the Zhambyl district of the Almaty region.

Kremlin aide Yury Ushakov confirmed that the deal will cover "the main parameters for building a nuclear power plant and financing the project through a Russian state export loan." Kazakhstan has stated that Russia will cover approximately 85 percent of the total construction costs. The plant is expected to come online between 2035 and 2036.

Russia's state nuclear corporation Rosatom has been selected to lead an international consortium managing the build. Field research at the site is already well advanced: 60 wells have been drilled and nearly 1,000 soil and water samples collected for analysis, according to Kazakhstan's Atomic Energy Agency.

Oil Deals on the Side

Nuclear energy is not the only topic on the table. Putin and Kazakhstani officials will also discuss increasing the flow of Russian oil to China through Kazakhstan's pipeline network.

Last year, Russia and Kazakhstan agreed to raise oil shipments via the Atasu-Alashankou pipeline by 2.5 million tons per year, reaching a total of 12.5 million metric tons annually. However, that increase has not yet been fully implemented. Putin's visit is expected to push the issue forward.

Kazakhstan Walks a Tightrope Between Moscow and Beijing

The deal with Russia is only part of a larger, carefully managed balancing act. China's China National Nuclear Corporation (CNNC) is also in discussions to build a separate nuclear plant in Kazakhstan – potentially a second facility in the same Zhambyl district.

This two-track approach reflects Kazakhstan's deliberate strategy: avoid becoming too dependent on any single great power. The country sits between Russia and China, two giants with overlapping and sometimes competing interests in the region. Astana has learned to use that position skillfully.

For Russia, the nuclear deal is more than an energy project. Since 2023, Moscow has explicitly used nuclear energy as a diplomatic instrument, as outlined in a foreign policy document signed by Putin that year. Rosatom is already building a plant in neighboring Uzbekistan and is in talks about a facility in Kyrgyzstan. Central Asia is becoming a key theater for Russian nuclear diplomacy.

Concerns Remain

Not everyone is fully convinced the project will go smoothly. Analysts point out that Russia is already struggling to finance three coal-fired power plants currently under construction in Kazakhstan – raising questions about whether similar delays and funding problems could affect the nuclear project. Western sanctions on Russia, though not directly targeting Rosatom, could also complicate the construction timeline.

Kazakhstan, for its part, would be paying off the Russian state loan long after the plant opens its doors, further deepening its financial ties with Moscow.

Why This Matters

Kazakhstan is one of the world's largest producers of uranium – and yet it has been importing electricity and burning coal. Building nuclear power capacity at home is a logical step. The question is what political price comes attached.

The deal with Russia brings Astana closer to Moscow at a time when many countries are trying to reduce their exposure to Russian state enterprises. Whether Kazakhstan can keep its balance between East and West – and still deliver reliable energy for its growing economy – remains to be seen.

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Sources:

1. Reuters – Russia and Kazakhstan will sign nuclear power deal during Putin trip, Kremlin says (May 26, 2026): https://www.reuters.com/world/china/russia-kazakhstan-will-sign-nuclear-power-deal-during-putin-trip-kremlin-says-2026-05-26/
2. World Nuclear News – Kazakhstan updates on nuclear energy, uranium plans (March 19, 2026): https://www.world-nuclear-news.org/articles/kazakhstan-updates-on-nuclear-energy-uranium-plans
3. OilPrice.com – Kazakhstan's Two-Step Nuclear Plan Reveals Delicate Diplomacy (June 2025): https://oilprice.com/Alternative-Energy/Nuclear-Power/Kazakhstans-Two-Step-Nuclear-Plan-Reveals-Delicate-Diplomacy.html
4. Anadolu Agency – Russia and Kazakhstan agree on nuclear power plant roadmap: https://www.aa.com.tr/en/world/russia-kazakhstan-agree-on-nuclear-power-plant-roadmap/3605363
5. AP/PBS NewsHour – Russia to build a small nuclear power plant in Uzbekistan: https://www.pbs.org/newshour/amp/world/russia-to-build-a-small-nuclear-power-plant-in-uzbekistan

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