The idea of constructing a nuclear power plant in Armenia with U.S. participation has become one of the most widely discussed foreign policy issues in the region. During a recent visit to Yerevan by U.S. Vice President J.D. Vance, Washington and the Armenian government signed an intergovernmental agreement on cooperation in the field of civil nuclear energy. The agreement opens the door to the export of American nuclear technologies, fuel, and related services to the republic. The U.S. side estimates the potential value of this cooperation at around $9 billion — approximately $5 billion in initial exports and another $4 billion in long-term support through fuel supplies and maintenance. In Washington, the deal is viewed not merely as a commercial contract but as a strategic move aimed at diversifying Armenia’s energy sector and reducing its dependence on Russia.

For Armenia, the project could create significant new opportunities. The country has long sought greater energy sovereignty, while its existing nuclear power plant in Metsamor — built during the Soviet era — operates on Russian fuel and supplies a substantial share of the nation’s electricity. Armenian authorities believe that modernizing the sector and attracting new partners will improve reliability and stimulate further development. Prime Minister Nikol Pashinyan said that nuclear cooperation with the United States could “open a new chapter” in Armenia’s energy policy and strengthen the strategic partnership between the two countries.

However, Moscow sharply criticized the initiative shortly after the agreement was signed. Russian Foreign Ministry spokesperson Maria Zakharova described the U.S.-linked project as a “very murky scheme”, highlighting a lack of concrete details about the $9 billion initiative and questioning its transparency. She pointedly remarked that some Armenian media had labeled the proposed investment as “unprecedented”, but stressed that what is being promoted may not involve genuine American financial commitment — with Armenia itself expected to bear much of the cost via a yet-to-be-formed TRIPP fund.

Zakharova also drew attention to the fact that the small modular reactors being offered “do not exist anywhere, not even in the United States — they exist only on paper”, suggesting Armenia could be used as a testing ground for technologies that are not yet proven in practice. Russian commentary on the issue also raised concerns about potentially higher actual costs than advertised.

Aside from technical doubts, Russian officials and analysts have portrayed the step as a geopolitical challenge to Moscow’s influence in what it considers a traditional sphere of interest. For Russia, the South Caucasus remains strategically important, and an expanded U.S. presence through energy projects is seen as direct pressure. Russian officials emphasize that Moscow has already offered Armenia tested and operational nuclear solutions, including small reactor projects successfully implemented in practice, and remains ready to cooperate.

The Kremlin has sought to temper its criticism by formally acknowledging Armenia’s sovereign right to choose partners, but at the same time has underscored its readiness to compete for the nuclear project, promoting Russian technology as more reliable and economically advantageous.

 

Ultimately, the proposal to build a U.S.-backed nuclear plant in Armenia has become more than just an energy initiative — it has emerged as a symbol of shifting geopolitical dynamics in the region. For Yerevan, it represents a chance to attract investment and diversify energy sources; for Moscow, it signals a potential weakening of traditional ties and loss of influence. With no final decision yet made on who will build the new plant, the situation remains a vivid example of how energy policy intertwines with broader international strategy.

#ARMENIA

#RUSSIA

16.02.2026 08:43