Photo: EPA
The agreement предусматриває the replacement of the Soviet-era Metsamor nuclear power plant with US-built small modular reactors and an expansion of defense cooperation between the two countries. On Monday, US Vice President J.D. Vance signed a civil nuclear cooperation agreement with Armenia that could unlock up to $9 billion in potential investment. The deal is intended to help the South Caucasus nation reduce its long-standing dependence on Russia in the energy sector, Bloomberg reports.
The document, known as a Section 123 agreement, establishes the legal framework for US companies to export nuclear technologies, fuel, and related services to Armenia. It opens the door for American firms to compete for the contract to replace the Soviet-era Metsamor nuclear power plant — which currently supplies about 40% of Armenia’s electricity — with small modular reactors (SMRs). “This will pave the way for American and Armenian companies to conclude agreements on civil nuclear projects. That means up to $5 billion in initial US exports, plus an additional $4 billion in long-term support through fuel supply and maintenance contracts,” Vance said at a briefing in Yerevan. The US vice president stressed that the deal represents a classic win-win outcome, strengthening energy security for both the United States and Armenia while creating a large number of new jobs.
Russia’s energy grip
Since gaining independence, Armenia has relied on Moscow both for energy supplies and security guarantees. The Metsamor nuclear power plant is operated by Russia’s state-owned corporation Rosatom, and the nuclear fuel used at the facility is imported from Russia. Ahead of Vance’s visit, Rosatom representatives met with Armenian leaders in Moscow, offering what they described as “comprehensive cooperation” on new nuclear capacity projects.
However, Prime Minister Nikol Pashinyan’s government has increasingly signaled a shift toward Western reactor technologies, citing safety concerns, diversification, and energy sovereignty. Officials have described the move as a strategic choice rather than a purely commercial one.
Speaking alongside Vance, Pashinyan said the agreement would open a “new chapter” in energy relations between the United States and Armenia and help diversify Armenia’s energy mix through the adoption of what he called “safe and innovative” technologies.
Sphere of influence — the South Caucasus
The nuclear deal is part of broader US efforts to strengthen its presence in the South Caucasus — a region wedged between Russia, Turkey, and Iran — amid shifting regional alliances. Washington and Yerevan are also expanding defense cooperation: Armenia has received a shipment of US drones worth $11 million, Pashinyan said.
On Tuesday, Vance is expected to fly to Baku, where US and Azerbaijani officials are set to discuss defense and energy cooperation.
The visit comes several months after President Donald Trump brokered a draft peace agreement between Armenia and Azerbaijan. Under the framework deal, a proposed transit corridor through Armenia was named the “Trump Route for International Peace and Prosperity” (TRIPP).
After decades of loyalty, Moscow has become a foreign power for Yerevan. A country that long relied on Russia for its security is gradually turning toward Europe. Why this pivot is happening without loud declarations and how this delicate balancing act between fear and freedom may end is analyzed by Serhii Danilov, deputy director of the AMES Center for Middle Eastern Studies, in his article “A divorce without scandal: how Armenia is quietly leaving the Kremlin’s orbit.”
