Kazakhstan snubs Moscow: Putin ally drops Russian power plant deals

A key regional partner of Vladimir Putin is quietly pulling away from Moscow’s economic orbit.

Kazakhstan has scrapped plans to involve Russian companies in three major power plant projects, turning instead to domestic builders and new international partners. The decision lands at a sensitive moment for Russia, which is increasingly dependent on a narrowing circle of allies as sanctions and war costs bite.

For the Kremlin, even small cracks in those relationships carry strategic weight.

Power Projects Rewritten

The projects involve three combined heat and power plants in Kokshetau, Semey and Ust-Kamenogorsk.

Originally, Russian firms were expected to build the plants under a bilateral agreement reached during Putin’s 2023 visit to Kazakhstan. State energy giant Inter RAO had been lined up as the lead contractor.

Now those plans are gone. The Kokshetau plant will be built domestically, while the other two will be developed by a Kazakh–Singaporean partnership.

Financing Promises That Never Came

Kazakh officials say the turning point was money.

Earlier agreements relied heavily on long-term financing from Russian banks. But authorities say confirmation of concessional loans never arrived, leaving the projects stuck in limbo.

Complications over credit conditions and subsidies for equipment purchases only deepened the uncertainty.

New Partners, New Technology

Kazakhstan is now looking beyond Moscow.

State energy firm Samruk-Energo, led by chairman Kayrat Maksutov, has signed agreements with Singaporean partners. Officials say the new plants will incorporate Chinese technology and modern “clean coal” systems.

The facilities are also expected to integrate artificial intelligence to optimise energy production and emissions control.

Billions at Stake — And a Strategic Shift

The scale of the investment is enormous.

The Kokshetau plant alone will cost roughly 356 billion tenge — about $760 million — and is expected to begin operating in 2029. The Semey and Ust-Kamenogorsk projects are even larger, each projected to exceed $1.2 billion.

Together they represent one of Kazakhstan’s biggest energy infrastructure pushes this decade.

For Moscow, the message is uncomfortable. Even long-standing partners are hedging their bets — and looking elsewhere for the future.

Putin ally turns away from Moscow — drops Russian power plant deals