Kazakhstan and Russia have signed a landmark agreement to finance and build Kazakhstan’s first nuclear power plant, marking a major step in the country’s long-term energy strategy and industrial modernization.

The agreement outlines the key principles and conditions of cooperation between the two countries, including the provision of a state export credit from Russia to support the multibillion-dollar project, The Caspian Post reports via Kazinform.

Kazakh President Kassym-Jomart Tokayev described the deal as exceptionally important for the country, emphasizing its role in boosting scientific, educational and technological cooperation between Astana and Moscow.

“I express my gratitude to the President of the Russian Federation for his personal and decisive support in launching this large-scale project,” Tokayev said, adding that the nuclear plant would help drive the development of new sectors across Kazakhstan’s energy and industrial landscape.

The project is expected to become one of the largest infrastructure initiatives in Kazakhstan’s history. Chairman of the Kazakh Atomic Energy Agency Almassadam Satkaliyev said that the construction of two nuclear power units will cost around $14.4 billion, while an additional $2 billion has been allocated for physical security systems and social infrastructure.

Satkaliyev said the project would be financed through a long-term export loan offered on favorable terms for Kazakhstan, with the Ministry of Finance overseeing the financial arrangements.

Engineering surveys are already underway as the project moves into the practical implementation stage. Main construction work is expected to begin in 2027, while the first power unit could become operational by 2034.

The agreement was signed during Russian President Vladimir Putin’s state visit to Astana, where he held talks with President Tokayev and participated in a series of bilateral meetings focused on strengthening strategic cooperation between the two countries.

The leaders also oversaw the signing of multiple agreements spanning energy, infrastructure and industrial cooperation, highlighting the growing importance of Kazakhstan-Russia ties amid shifting regional energy demands.