US and Armenia Agree on Billion-Dollar Nuclear Deal Amid Push for Regional Ties
In a significant move, the United States has struck a deal with Armenia worth billions of dollars in nuclear energy cooperation. The agreement was signed by Armenian Prime Minister Nikol Pashinyan and US Vice President JD Vance during his two-day visit to the country.
The multibillion-dollar deal allows the US to license nuclear technology and equipment to other countries, with initial exports estimated at up to $5 billion and longer-term fuel and maintenance contracts worth an additional $4 billion. The agreement focuses on small modular reactors and demonstrates Washington's confidence in Armenia's ability to receive this new technology.
The deal comes as Armenia seeks to diversify its energy partners amid a push by the West Asian country to reduce its reliance on Russian energy. Yerevan has been reviewing proposals from US, Russian, Chinese, French, and South Korean companies to construct a new nuclear reactor, with the facility set to replace the ageing Russian-built nuclear power plant in Metsamor.
The agreement is seen as a significant blow to Russia, which had long dominated Armenia's nuclear energy sector. A spokesperson for Russian Deputy Foreign Minister Mikhail Galuzin stated that a Russian proposal for a new nuclear plant was the best option for Armenia, but acknowledged there were no "real alternatives" in terms of available technologies and financial parameters.
The deal also marks an opportunity for the US to increase its influence in the region, with plans to advance a proposed 43km corridor connecting southern Armenia and Azerbaijan. The TRIPP project would provide a direct route between the two countries and on to Turkey, promoting regional economic growth and connectivity.
Armenia's Prime Minister Pashinyan hailed the agreement as opening "a new chapter" in the country's energy partnership with the US. Vice President Vance expressed confidence in Armenia's ability to receive this new technology, stating that Washington was "creating real prosperity for Armenia and the United States together."
In a significant move, the United States has struck a deal with Armenia worth billions of dollars in nuclear energy cooperation. The agreement was signed by Armenian Prime Minister Nikol Pashinyan and US Vice President JD Vance during his two-day visit to the country.
The multibillion-dollar deal allows the US to license nuclear technology and equipment to other countries, with initial exports estimated at up to $5 billion and longer-term fuel and maintenance contracts worth an additional $4 billion. The agreement focuses on small modular reactors and demonstrates Washington's confidence in Armenia's ability to receive this new technology.
The deal comes as Armenia seeks to diversify its energy partners amid a push by the West Asian country to reduce its reliance on Russian energy. Yerevan has been reviewing proposals from US, Russian, Chinese, French, and South Korean companies to construct a new nuclear reactor, with the facility set to replace the ageing Russian-built nuclear power plant in Metsamor.
The agreement is seen as a significant blow to Russia, which had long dominated Armenia's nuclear energy sector. A spokesperson for Russian Deputy Foreign Minister Mikhail Galuzin stated that a Russian proposal for a new nuclear plant was the best option for Armenia, but acknowledged there were no "real alternatives" in terms of available technologies and financial parameters.
The deal also marks an opportunity for the US to increase its influence in the region, with plans to advance a proposed 43km corridor connecting southern Armenia and Azerbaijan. The TRIPP project would provide a direct route between the two countries and on to Turkey, promoting regional economic growth and connectivity.
Armenia's Prime Minister Pashinyan hailed the agreement as opening "a new chapter" in the country's energy partnership with the US. Vice President Vance expressed confidence in Armenia's ability to receive this new technology, stating that Washington was "creating real prosperity for Armenia and the United States together."