US reaches civil nuclear cooperation deal with Armenia and Russia

US Vice President JD Vance has announced a potential investment of up to $9 billion in Armenia during his two-day visit to the country. The announcement comes as part of an agreement on civil nuclear cooperation between the US and Armenia.

Armenian Prime Minister Nikol Pashinyan and US Vice President Vance signed the 123 Agreement, which allows the US to license nuclear technology and equipment to other countries. According to Vance, this deal could enable up to $5 billion in initial exports to Armenia, plus an additional $4 billion in longer-term fuel and maintenance contracts.

The agreement relates to small modular reactors and is seen as a significant development for Armenia’s energy sector. The country has been reviewing proposals from various companies, including US, Russian, Chinese, French, and South Korean firms, to construct a new nuclear reactor at its Metsamor site.

Vance’s visit marks the first time a sitting US president or vice president has visited Armenia. The agreement with Washington clears the way for a US-built nuclear plant to be chosen, which could potentially disrupt Russia’s influence in the region.

Armenia’s Prime Minister Pashinyan stated that diversifying partners in nuclear cooperation is a “political priority”. Russian Deputy Foreign Minister Mikhail Galuzin countered that a Russian proposal for a new nuclear plant was the best option, citing reliable technologies and financial parameters.

During his visit, Vance also plans to advance plans for the Trump Route for International Peace and Prosperity (TRIPP), a proposed 43km corridor connecting southern Armenia to Azerbaijan and Turkey. The route aims to improve energy and trade routes away from Russia and is seen as a transformative megaproject for the South Caucasus region.

Vance’s visit to Azerbaijan is scheduled for Wednesday and Thursday, according to the White House.

Source: Al Jazeera