Kathrine Frich
Russia’s economy has come under increasing strain as the war in Ukraine continues to drain resources.
Sanctions, rising military costs, and shifting trade patterns have forced Moscow to rely more heavily on a shrinking circle of partners.
At a time when maintaining those relationships is critical, any sign of allies stepping back carries added weight for the Kremlin
Plans reshaped
Kazakhstan has decided to exclude Russian companies from the construction of three planned combined heat and power plants, according to Kursiv cited by Moscow Times.
Instead, the country will move forward either independently or with new international partners.
A facility in Kokshetau will now be built domestically, while projects in Semey and Ust-Kamenogorsk will be developed by a Kazakh-Singaporean consortium involving state energy firm Samruk-Energo.
Financing hurdles
Officials said the shift followed difficulties in securing funding from Russia.
Earlier plans had relied on Russian banks to provide long-term financing, but Kazakh authorities reported that confirmation of concessional loans never materialized.
The projects also faced complications related to credit terms and subsidies for equipment purchases.
New partnerships
Samruk-Energo chairman Kayrat Maksutov said agreements with Singaporean partners were signed at the end of January.
Kazakhstan is also turning to Chinese technology for the plants, which officials say will meet environmental standards and incorporate “clean coal” systems and elements of artificial intelligence.
Major investments
The three plants represent a significant investment effort.
The Kokshetau facility alone is expected to cost around 356 billion tenge ($760 million) and is scheduled to launch in early 2029.
The Semey and Ust-Kamenogorsk plants are projected to cost over $1.2 billion each, with both expected to be operational by the end of the decade.
The projects were initially part of a bilateral agreement reached during President Vladimir Putin’s visit in late 2023.
That plan envisioned Russian contractor Inter RAO leading construction, backed by long-term financing from Russian banks.
Sources: Kursiv, government briefing, Samruk-Energo, Moscow Times.
