ASTANA — Russia and Kazakhstan signed a $16.5 billion agreement to build Kazakhstan’s first commercial nuclear power plant during high-level bilateral talks in Astana between Russian President Vladimir Putin and Kazakh President Kassym-Jomart Tokayev. The plant will be constructed near the village of Ulken in southeastern Kazakhstan along Lake Balkhash.

Rosatom, Russia’s state-run nuclear corporation, will lead the project, which features two advanced VVER-1200 Generation III+ reactors. Construction is scheduled to begin in 2027, with the first reactor slated to become operational by early 2034. The project will be backed by a Russian export loan covering approximately 85% of the total cost, with about $2 billion allocated toward security systems and foundational infrastructure.

“The commissioning of the plant will make a contribution to the energy supply of the Kazakh economy, helping to provide businesses and households with affordable and clean energy,” Putin said at the signing ceremony. He added, “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.”

“The agreement signed today on the construction of the Balkhash NPP has an important role,” Tokayev said. Kazakh voters approved development at the Balkhash site in a 2024 national referendum.

Kazakhstan has struggled with aging coal-reliant power infrastructure and electricity deficits for more than two decades. The country is the world’s largest producer of uranium. Rosatom secured the primary construction mandate after competing against China National Nuclear Corp., France’s EDF, and Korea Hydro & Nuclear Power. Kazakhstan hosted hundreds of Soviet nuclear weapons tests at the Semipalatinsk site between 1949 and 1989.