Kazakhstan Picks Rosatom, Sets Nuclear Agenda

No Politics, Just Business

The head of the Agency said the selection process was purely based on a competition among some of the most experienced players in the sector. Rosatom presented “the most optimal and advantageous proposal,” according to an official press release.

When asked specifically about a potential geopolitical rationale behind the decision, Satkaliyev dismissed any rumors.

“The decision was not politically motivated,” Satkaliyev told Vlast.

“There will be no dependence on Russia in terms of nuclear technologies, or technical, economic, and political issues,” he said, while minimizing the potential risks concerning international sanctions against Russia’s state-owned companies.

“We understand that risks are possible, we will take appropriate measures to mitigate [the risks] if sanctions are introduced,” Satkaliyev said, noting that Rosatom was not included in Western sanction lists.

Marco Siddi, a researcher at the Finnish Institute for International Affairs, told Vlast that Kazakhstan is part of Rosatom’s strategy to reorient its operations.

“In the past decades, Rosatom worked in East European countries, both for political and economic reasons. These markets are now saturated. Politically, it’s impossible for Rosatom to now cooperate with the West as it once did,” Siddi told Vlast.

Kazakhstan’s political and economic proximity makes it an ideal partner for Rosatom, Siddi argued.

“Kazakhstan represents a country that is already close to Russia and where Rosatom is already present in the uranium processing process through its subsidiary Uranium One,” Siddi said.

State-owned Uranium One owns a number of uranium mining licenses in Kazakhstan. In December, it sold a large stake in the Zarechnoye joint venture and planned the sale of its shares in Khorasan-U and Kyzylkum projects in the south of the country.

While walking a tightrope with potential sanction risks, Kazakhstan seems to still be a safe bet for international cooperation.

“Kazakhstan is not under sanctions and this could allow, say, a German company to sell components to build the nuclear plant in Kazakhstan, even if the contractor is Rosatom,” Siddi noted.

Kazakhstan’s Own Plant

Ultimately, Kazakhstan will retain full ownership of the plant.

Satkaliyev emphasized that the companies competing for a license to build the NPP had to ensure the creation of a training environment for local specialists and the use of as much local technical and industrial operations as possible.

“They will come, build, train, and leave,” Satkaliyev said.

For years, President Kassym-Jomart Tokayev had pushed the nuclear agenda, essentially heralding the construction of Kazakhstan’s first nuclear power plant.

Last year, Tokayev called for a referendum, which was choreographed to return a substantial approval rating for the prospective development of nuclear energy. With just above 70% of votes in favor, Kazakhstan’s population reportedly approved the government plan. A number of activists were detained ahead of the vote – five of them are still in custody awaiting trial – and the public discussions in the year before the referendum had been well ring-fenced against popular dissent.

Since the government started to accept applications for the construction of the plant, Rosatom’s potential participation had stirred preoccupation among the population.

In an effort to mitigate tensions, Tokayev said that the plant would be built not by just one company, but by a consortium.

“Kazakhstan has excellent relations with the West both for its oil exports and for its supplies of uranium. So it was important for Tokayev to remain vague enough to reassure Kazakhstan’s European partners that it’s not just blindly becoming part of the Russian nuclear industry,” Siddi said.

Yet, it now seems that Rosatom will be the only company really in charge of building Kazakhstan’s first NPP.

The choice of Rosatom as the “pioneer” in Kazakhstan’s nuclear industry could also have to do with its vertically-integrated structure, according to Siddi.

“Besides building the reactor and providing expertise for its operation and personnel education, it also usually provides solutions for nuclear waste disposal. Rosatom brands itself as a ‘one-stop shop’ for new nuclear plants, and this could have enticed Kazakhstan’s government,” Siddi said.

First Plant’s First

Satkaliyev said the government plans to have the first plant commissioned by 2036, a rough calculation of 12 years since the start of the project, which is planned for the coming months.

“This summer we plan to begin design survey work near the Balkhash Lake to determine the optimal location, and conduct geological and geophysical studies,” Satkaliyev said.

Satkaliyev also hinted that the government viewed favorably the possibility that China National Nuclear Corporation could build a second NPP. Such an acceleration for the nuclear energy sector could significantly change Kazakhstan’s energy mix in the next 15 years.

“China is demonstrating unique [construction] rates of around six years. We certainly want to see Chinese technologies in Kazakhstan, perhaps for the construction of another nuclear power plant,” Satkaliyev said.