What’s Behind Rosatom’s Sale of Stakes in Kazakhstan to China Russia’s state nuclear corporation Rosatom has sold its stakes in three uranium mining joint ventures in Kazakhstan to Chinese companies, amid sanctions risks and financial needs. The sale includes a 49.99% stake in Zarechnoye, a 30% stake in Khorasan-U, and a 30% indirect stake in Kyzylkum joint ventures with Kazakhstan’s national company Kazatomprom.
The deal appears to be driven by Kazatomprom’s concerns about potential Western sanctions due to its partnership with Rosatom. As the world’s largest uranium producer, Kazatomprom sells 29% of its production to Europe and wants to avoid sanctions complications that could affect its business. For China, acquiring these stakes aligns with its energy security strategy. While the Zarechnoye deposit has limited reserves (3,500 tons of uranium with 3-5 years of operation left), the Khorasan-1 site contains about 33,000 tons. This acquisition supports China’s ambitious nuclear power expansion plans – the country aims to build over 150 new reactors by 2035, adding to its current 54 operating units.
The deal benefits Kazakhstan by establishing direct producer-consumer cooperation with China, which has both modern mining technologies and investment capacity, unlike Rosatom’s older extraction methods. While some deposits may be nearing depletion, unexplored areas and potential new partnerships with Kazatomprom make this a strategic investment for China’s growing nuclear sector.
