Kazakhstan’s ambitious project to build its first nuclear power plant at Lake Balkhash is encountering further delays due to unresolved financial arrangements and operational disagreements with Russia’s state nuclear company, Rosatom. Although both countries agreed in principle that Moscow would finance the majority of the $15 billion project, the formal deal remains unsigned months after the initial announcement.
At a recent meeting in Moscow, Kazakhstan’s Atomic Energy Agency leader pressed Rosatom’s chief on critical issues including the timeline for project approval and Kazakhstan's insistence on controlling the nuclear fuel cycle. Rosatom indicated that it requires an extended observation period—at least a year—to complete essential environmental, geological, and weather assessments before the construction can proceed. This unexpected extension adds uncertainty to the project’s schedule.
Rosatom's financial capability has suffered due to Western sanctions tied to the conflict in Ukraine, complicating its commitments abroad. These sanctions have already forced the cancellation of Russian contracts on a Kazakh thermal power plant, fueling doubts about Rosatom’s ability to fulfill its Balkhash commitments on time and scale. Kazakhstan, which possesses significant uranium resources, wants to manage its own nuclear fuel supply chain—a demand that contrasts with Rosatom’s usual practice of maintaining control over fuel provisions at its plants.
Despite public statements from Rosatom suggesting that a mutual understanding has been reached to align with both nations’ strategic interests, the lack of a signed financing agreement and unresolved fuel cycle control could stall progress. Kazakhstan awarded Rosatom the contract in 2025, and in April both parties agreed in principle on Russia covering 85 percent of costs, but full implementation remains pending. The extended preparatory phase and ongoing negotiations signal that the plant’s construction timeline will likely be pushed back further.