The US has committed up to $9 billion to help Armenia build its nuclear energy industry. A Section 123 agreement, which US Vice-President JD Vance signed, will let U.S. companies to export nuclear technology, fuel, and services to the United States.
The agreement makes it possible for US businesses to bid against Armenia’s nuclear power plant, which dates back to the Soviet era. “This agreement opens the door for agreements on civil nuclear projects between Armenian and American companies,” Vance stated. “That includes $4 billion in long-term assistance through fuel and maintenance contracts, in addition to up to $5 billion in initial US exports.”
Vance called the agreement a “classic win-win” for both countries, pointing to increased job prospects and improved energy security for both the US and Armenia.
Since gaining its independence in 1991, Armenia has always depended on Moscow for both security and energy. Russia’s Rosatom runs its current nuclear plant, Metsamor, using Russian-sourced fuel. Since 1980, the 416-MW pressurized-water Armenian-2 reactor has been in commercial use. 1989 saw the closure of the older Armenian-1 unit.
To investigate possibilities for building a replacement reactor, the Armenian government established a new business last year. With the goal of completing a development plan for the new nuclear capacity by the middle of 2026, the business will evaluate technology vendors’ offers to ascertain possible designs and costs.
