Atoms for Astana: Rosatom builds, the world watches

Steppe Ahead – The column on geopolitics, economics, and innovation in Central Asia

Author: Thorsten Gutmann

Kazakhstan is venturing into the nuclear age – and is relying on a well-known partner: Russia. More specifically, Rosatom, the state-owned nuclear giant that builds reactors worldwide, supplies fuel, and sees itself as a strategic bridge builder. On June 14, the Kazakh nuclear authority announced that Rosatom will lead an international consortium to build the country's first nuclear power plant.

It will be built in Ulken, a semi-abandoned village on Lake Balkhash – a place between the past and the future. Two reactors are scheduled to go online there by 2035. The planned total output is 2.4 gigawatts – enough to supply millions of people with electricity. And: a symbolic power center for a country that is currently the world market leader in uranium exports but does not generate its own nuclear power.

Rosatom prevailed in a high-profile bidding process against companies from China, France, and South Korea. All applicants had submitted comprehensive proposals: from financing to localization and training to the issue of social responsibility. But the contract went to Moscow – apparently also because Rosatom offers state export financing as part of the package. Financing talks with Russia are already underway.

Kazakhstan, the world champion in uranium exports

Kazakhstan exported over 26,800 tons of natural uranium in 2023 – almost half of the global market. Nevertheless, the country has to organize electricity imports or operate coal-fired power plants at full capacity. The new nuclear power plant is intended to remedy this energy policy imbalance.

But the construction is not just an infrastructure project – it is political. Despite the war in Ukraine, Russia remains a sought-after partner. President Tokayev is deliberately striking a balance: on the one hand, good relations with Moscow and Beijing, and on the other, openness to the West. A consortium with international partners – China, France, South Korea – is intended to symbolize this balance. However, observers believe that in the end, Rosatom will build the power plant largely on its own.

The population is divided. Approval for the construction was obtained by referendum – a first. Mistrust of nuclear technology runs deep. Semipalatinsk, Soviet nuclear bomb tests, the BN-350 reactor on the Caspian Sea – the country's nuclear history is heavily burdened.

Since the last reactor was shut down in 1999, no more nuclear power has been generated in Kazakhstan. But the situation has changed. Industry, digitalization, climate targets – they all require base-load energy. The West's nuclear phase-out is not a model for Astana, but a warning.

The timing of the announcement is also interesting: just a few days before Chinese President Xi Jinping's visit to Kazakhstan. Coincidence? Hardly. The message: Kazakhstan remains open, but chooses its partners itself.

Conclusion: Rosatom not only supplies technology, but also influence. For Kazakhstan, the nuclear power plant is a step toward energy independence – but also a balancing act between power blocs. How much sovereignty the country can retain will not only become apparent when the reactor is switched on, but in every decision made until then.