$9 Billion US-Armenian Nuclear Deal: Full Details
In a move reflecting a strategic shift in the balance of power and energy security in the Caucasus region, the United States and Armenia announced a landmark agreement for cooperation in the field of civilian nuclear energy. This announcement followed intensive talks between US Vice President Jeb D. Vance and Armenian Prime Minister Nikol Pashinyan during the latter's current visit to Yerevan.
Details of the billion-dollar deal
The two sides announced the completion of negotiations on what is known as the "123 Agreement," a crucial legal step that opens the door for US companies to export nuclear technology and equipment to Armenia. According to official statements, the agreement paves the way for initial US exports worth $5 billion , aimed at modernizing Armenia's energy infrastructure.
The agreement is not limited to the initial supply, but extends to include long-term contracts for the supply of nuclear fuel, maintenance services and technical support with an additional value of up to $4 billion , bringing the total value of cooperation to about $9 billion, an unprecedented figure in the history of economic relations between the two countries.
What is the 123 nuclear agreement?
A 123 Agreement (named after Section 123 of the U.S. Atomic Energy Act of 1954) is a prerequisite for any major nuclear cooperation between the United States and other countries. This agreement ensures that the importing country adheres to strict nonproliferation standards and guarantees that U.S. technology is used solely for peaceful purposes and electricity generation. Signing this agreement with Armenia would integrate Yerevan into the Western nuclear standards system, granting it access to the latest small modular reactor (SMR) technologies developed by the U.S. nuclear industry.
Strategic importance and energy security
This agreement is of paramount importance given the historical context of Armenia's energy sector. The country currently relies heavily on the Metsamor nuclear power plant, built during the Soviet era, which supplies a significant portion of the country's electricity needs. With the plant aging and the urgent need to replace it with safer and more efficient solutions, the US involvement represents a strategic alternative that reduces Armenia's exclusive dependence on traditional energy sources or its traditional regional partners.
For his part, Armenian Prime Minister Nikol Pashinyan described the agreement as a "new chapter" in bilateral relations, noting that deepening the partnership with Washington in this vital sector will enhance Armenia's energy independence and support its national economy in the long term.
Regional and international impacts
Internationally, this agreement is interpreted as part of a broader US strategy to strengthen its presence in Eurasia and support its allies through sustainable economic and technological partnerships. It also reflects Armenia's desire to diversify its international alliances and ensure its energy security by adopting advanced Western technology, thus contributing to the stability of its national electricity grid for decades to come.
