Putin and Mirziyoyev Announce Historic Energy Cooperation Plans

Russian President Vladimir Putin and Uzbek President Shavkat Mirziyoyev have unveiled a series of joint initiatives aimed at strengthening bilateral ties, particularly in energy cooperation. During Putin's visit to Tashkent on May 27, 2024, the leaders announced plans for Russia to build Uzbekistan's first nuclear power plant, marking a significant milestone for both nations.

Why this matters: This energy cooperation between Russia and Uzbekistan has significant implications for regional energy dynamics and economic development. The partnership could lead to increased energy security and economic growth for both nations, while also influencing the balance of power in Central Asia.

The nuclear power plant will be constructed by Russia's state nuclear firm Rosatom and will consist of six reactors, each with a capacity of 55 megawatts, totaling 330 megawatts. This project is the first of its kind in post-Soviet Central Asia. Construction is set to begin this summer in the Jizzakh region, with local companies participating in the process.

In addition to the nuclear project, Russia will invest $400 million in a joint investment fund with Uzbekistan, totaling $500 million, to finance various projects within the country. Uzbekistan has also expressed interest in increasing its imports of Russian oil and gas, reversing a decades-long practice where Moscow imported hydrocarbons from Central Asia.

Putin highlighted the strategic partnership between the two nations, describing Tashkent as a 'strategic partner and reliable ally'. Mirziyoyev echoed this sentiment, calling Putin's visit 'historic' and stating that it 'heralds the beginning of a new age in the comprehensive strategic partnership and alliance relations between our countries'.

The leaders also discussed cooperation in other sectors, including mining, metals, and chemicals. Russia's major energy companies, such as Gazprom and LUKOIL, are already operating in Uzbekistan, developing gas fields and petrochemical production. In addition, RusHydro is assisting Uzbekistan in creating flexible generation capacities, including the construction of two large pumped storage power stations on lakes Aydarkul and Karateren.

The nuclear power plant project is smaller in scale than the 2.4-gigawatt project agreed upon in 2018, which has yet to be finalized. Nevertheless, this new initiative highlights Russia's ability to export high-tech energy solutions to Asian markets, despite Western sanctions. It also highlights Uzbekistan's efforts to meet its growing energy demands and ensure energy security.

Uzbekistan's economy heavily depends on remittances from migrant laborers working in Russia, and the country has maintained close ties with Moscow. However, Uzbekistan has not publicly supported Russia's actions in Ukraine. This cooperation reflects the complex geopolitical environment and the strategic importance of energy partnerships in the region.

The agreements between Russia and Uzbekistan mark a significant step in their bilateral relations, with energy cooperation at the forefront. As both nations move forward with these plans, the impact on regional energy dynamics and economic development will be closely watched.

Key Takeaways

• Russia to build Uzbekistan's first nuclear power plant, 6 reactors, 330 megawatts.
• Russia invests $400 million in joint investment fund with Uzbekistan, totaling $500 million.
• Uzbekistan to increase imports of Russian oil and gas, reversing decades-long practice.
• Cooperation in mining, metals, and chemicals sectors also discussed.
• Project highlights Russia's ability to export high-tech energy solutions despite Western sanctions.