US Vice President JD Vance has signed a civil nuclear cooperation agreement with Armenia, promising investments of up to $9 billion in exchange for reducing dependence on Russia for energy.
The US views the move as a strategic decision, not a purely commercial one, Bloomberg reports.
The agreement establishes a legal framework for the export of nuclear technology, fuel and services by US companies to Armenia, in particular the supply of small modular reactors. For US companies, this is an “opportunity to compete for a replacement contract“ for the Armenian Nuclear Power Plant (NPP), built during the Soviet era, the report states. Currently, with Russian support, it is planned to extend its operational life until 2036, but the Armenian government is also considering the construction of a new nuclear power plant.
The Armenian Nuclear Power Plant was built between 1969 and 1977 and is located near the city of Metsamor (approximately 30 km west of Yerevan). The plant operates two power units with VVER-440 reactors. The complex is operated jointly with Rosatom.
It is the only operating nuclear power plant in the South Caucasus, providing up to 40% of Armenia's total electricity generation.
„This will pave the way for American and Armenian companies to conclude deals on civil nuclear projects. This represents up to $5 billion in initial U.S. exports, plus an additional $4 billion in long-term support through fuel and technical contracts,” Vance said at a briefing in Yerevan.
Armenian Prime Minister Nikol Pashinyan said the agreement would “open a new chapter” in the energy partnership between Armenia and the United States and contribute to the diversification of Armenia’s energy resources.
Armenia has increasingly signaled a move toward Western reactor designs, citing safety, diversification, and energy sovereignty, the agency emphasized. The nuclear cooperation agreement with Armenia is part of broader U.S. efforts to establish a presence in the South Caucasus.
On August 8, 2025, talks were held at the White House between U.S. President Donald Trump, Pashinyan, and Azerbaijani President Ilham Aliyev. After the meeting, they signed a trilateral declaration on the establishment of peace and interstate relations between Yerevan and Baku. Before the negotiations, the US and Armenia signed an exclusive agreement on the Zangezur Corridor: it will be transferred to the US for 99 years and will be known as the “Trump Road to International Peace and Prosperity“.