Rosatom and Kazakhstan Sign Balkhash Nuclear Plant Contract

Contract Signing and Key Project Parameters

On August 25, 2026, Rosatom and the government of Kazakhstan officially signed a contract for the construction of the Balkhash nuclear power plant. The project involves building two power units with a combined capacity of about 2400 MW, utilizing modern Generation III+ reactors. The total construction cost is estimated at 16.4 billion US dollars.

The Russian side will provide financing for 85% of the total project cost in the form of a loan, equivalent to approximately 14 billion dollars. The remaining 15% will be covered by the Kazakh budget, signaling a significant financial and technological cooperation between the two countries in the energy sector.

Technical Features and Implementation Timeline

The Balkhash NPP will be equipped with VVER-1200 reactor units, considered among the most advanced in the world. These reactors are known for enhanced safety and economic efficiency, enabling Kazakhstan to substantially increase the share of nuclear energy in its energy mix.

According to the roadmap, construction will begin in 2027, with the first unit scheduled to enter operation in 2033. The second unit is expected to be ready by 2036, aligning with the cooperation plans between Kazakhstan and the IAEA, recently signed and spanning until 2036.

Significance for Kazakhstan’s Energy Sector

The Balkhash NPP project will be a cornerstone of Kazakhstan’s energy strategy aimed at diversifying energy sources and reducing dependence on hydrocarbons. Plans foresee nuclear energy supplying up to 25% of the country’s total energy consumption by 2040.

Additionally, the plant’s construction will help lower carbon emissions, which is critical for meeting international climate commitments. The Kazakh economy will also benefit from new jobs during both construction and ongoing plant operation, positively impacting the development of the Balkhash region.

Rosatom’s Role and International Cooperation

Rosatom acts not only as the technology and financing provider but also as the main operator for construction and subsequent operation of the plant. The company already has experience in executing major international projects, including the El-Dabaa NPP in Egypt and others.

A key aspect is the signing of a joint roadmap with the International Atomic Energy Agency (IAEA) to ensure international safety standards and monitor compliance with environmental regulations. This cooperation extends through 2036 and will strengthen Kazakhstan’s position in nuclear energy.

Economic and Geopolitical Implications

The investment volume of 16.4 billion dollars makes this project one of the largest in the region in recent years. Russia’s 85% loan financing reduces the burden on Kazakhstan’s budget and stimulates bilateral cooperation in the energy field.

Project implementation will enhance Kazakhstan’s energy security and enable export of surplus electricity to neighboring Central Asian countries. This could strengthen regional economic ties and promote infrastructure development linked to nuclear energy.

Conclusion: The signing of the contract for the Balkhash NPP construction marks a new phase in the development of Kazakhstan’s nuclear energy sector, featuring a key role for its Russian partner and a large-scale investment project.