Page 9 - bne IntelliNews monthly magazine April 2025

bne April 2025 Companies & Markets I 9
Looking for nuclear for energy security
Another issue is energy security, especially given Kazakh- stan’s growing population and the expansion of the industrial sector. To address this, investments into renewables are ongo- ing, and the government is also considering setting up the country’s first nuclear power plant (NPP).
"Electricity demand is rising fast. By 2031, it is expected to grow by about 30%," Vinokurov said. Without additional capacity, the country could face an energy shortage of up to 7 TWh and a capacity deficit of 4.8 GW.
"A large nuclear power plant would help bridge this gap, ensuring a stable energy supply,” Vinokurov commented.
At present, Kazakhstan produces much of its electricity from coal, and transitioning to nuclear power offers a cleaner, more reliable alternative. As Vinokurov argues, achieving carbon neutrality by 2060 will not be possible without nuclear energy as a low-carbon power source.
“Beyond just meeting demand, nuclear power is also key to strengthening energy security. Kazakhstan still relies heavily on coal. Nuclear energy offers a clean and stable alternative, and I am very serious about that. Nuclear energy is a green alternative to coal. Kazakhstan will not be able to reach carbon neutrality by 2060 without nuclear. Globally, nuclear power is recognised as a low-carbon energy source, so building an NPP would be a major step toward a greener future,” said Vinokurov.
Kazakhstan is also developing a broader nuclear indus-
try, leveraging its position as the world’s largest uranium producer. Plans include investments in fuel production, advanced reactor technologies and workforce training,
which will not only strengthen energy independence but
also contribute to economic diversification. This initiative is expected to drive innovation, create high-value jobs and posi- tion Kazakhstan as a key player in the global nuclear sector.
However, ensuring energy security requires a multi-pronged
approach. Modernising coal plants and converting them
to gas could reduce emissions by 30% while significantly improving air quality in major cities. Expanding renewable energy sources – such as solar, wind and bioenergy –
is equally important, alongside developing hydropower projects to balance the grid.
Kazakhstan has already made progress in its renewable energy transition. "As of 2024, renewable energy facilities, includ- ing solar, wind, biomass and small hydropower plants [HPPs], accounted for 6.4% of the country’s electricity generation,
a jump from almost zero in 2015," according to Vinokurov.
The government aims for renewables to account for 15% of electricity generation by 2030. The EDB supports this shift, with over $640mn invested in green projects.
At the same time, Kazakhstan has made significant efforts to digitalise its economy, with the recent approval of the National AI Development Strategy being a key milestone. Digital transformation is reshaping industries such as agriculture, energy, and public administration by boosting efficiency, reducing costs and enhancing service quality, according to Vinokurov.
This shift is also driving investment growth. Over the past decade, net FDI in the IT sector has risen sevenfold, reaching a record $129.2mn in 2024, according to the National Bank of Kazakhstan. Additionally, Kazakhstan’s tech industry is expanding its global footprint, with IT service exports reach- ing $546.7mn in 2023. The country has set an ambitious target of $1.8mn in IT exports by 2029.
“These efforts are key to Kazakhstan’s long-term economic growth,” said Vinokurov. “Let me repeat, simply export-
ing commodities is not enough for Kazakhstan. Expanding digital and high-tech industries helps reduce reliance on hydrocarbon resources, a crucial step given the volatility of global oil prices. For Kazakhstan, digital transformation is not just another fad. It is a strategic necessity.”
Economic warfare and the rise of Russia's
shadow finance
Ben Aris in Berlin
As the US sanctions noose tightens around Russia’s abil- ity to make and receive payments in dollars, Reuters reported for the first time that the major oil firms are increasingly turning to cryptocurrency to settle trade deals.
The volumes are still small in relative terms, but there are already hundreds of millions of dollars in trades and the use
of cryptocurrencies that effectively sidestep all attempts to block Russia’s access to the international markets is only expected to rise.
The sixteen rounds of extreme sanctions on Russia have largely been ineffective with one major exception: getting paid for exported goods.
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