BAKU, Azerbaijan, June 7. Despite modest signs of diversification, fossil fuels remain the dominant force in Eurasia’s energy investment landscape, according to the International Energy Agency’s (IEA) latest outlook, Trend reports.
Covering Russia and the broader Caspian region, the report highlights a region marked by ageing infrastructure, harsh climate conditions, and inefficient energy use — with energy intensity roughly 70% above the global average.
Annual energy investment in Eurasia fell from nearly $190 billion in 2015 to a decade-low of $135 billion in 2022. The drop was driven by lower oil and gas supply costs and the significant reduction in Russian energy spending following the country’s invasion of Ukraine and subsequent loss of most of its European export markets.
However, investment is rebounding in other parts of the region. In Kazakhstan, energy spending has surged following the launch of the $48 billion Future Growth Project at the Tengiz oilfield — Central Asia’s largest — which began in January 2025. Total regional investment is expected to reach around $143 billion this year, returning to 2020 levels.
Looking ahead, under current policy settings, energy investment in Eurasia is projected to rise to $165 billion by 2035, with fossil fuels still accounting for around 70% of the total. Investment in renewable energy remains limited despite strong solar and wind potential. Nonetheless, change may be on the horizon. Uzbekistan plans to install more than 20 GW of renewable capacity by 2030, and regional collaboration is underway to establish a Green Energy Corridor connecting Uzbekistan, Kazakhstan and Azerbaijan for electricity exports.
The region is also emerging as a growing hub for nuclear energy. Russia remains a global leader in nuclear reactor construction, accounting for 45% of new reactors built since 2017. Kazakhstan and Uzbekistan are preparing to build their first nuclear power plants, while Kyrgyzstan is exploring small modular reactor (SMR) deployment. In 2024, Uzbekistan signed an agreement with Rosatom for small-scale nuclear reactors, while Kazakhstan is actively seeking partnerships beyond Russia to diversify its nuclear technology suppliers.
The IEA notes that while fossil fuels will continue to play a central role in the region’s energy mix, structural shifts — both in policy and investment — could gradually reshape Eurasia’s energy future.
