US and Armenia Finalize $9 Billion Civil Nuclear Cooperation Framework

The United States and the Republic of Armenia formalized a significant civil nuclear cooperation agreement, potentially valued up to $9 billion, on February 9, 2026. This bilateral accord was confirmed during the official visit of U.S. Vice President J.D. Vance to Yerevan, marking the first visit by a sitting U.S. vice president to the nation.

The legal instrument, known as a '123 Agreement' under Section 123 of the Atomic Energy Act, establishes the necessary structure for American enterprises to export nuclear technology and secure long-term contracts for fuel and maintenance services within Armenia. The projected financial scope is divided into an initial phase valued at $5 billion in U.S. exports, followed by an additional $4 billion for subsequent support mechanisms, including fuel supply and ongoing maintenance.

This strategic partnership is explicitly designed to facilitate the diversification of Armenia's energy matrix, which has maintained a significant reliance on Moscow for energy supplies and security since its 1991 independence. The nation's current nuclear facility, Metsamor, operates the Soviet-era Armenian-2 reactor—a 416-MW pressurised-water unit that began commercial operation in 1980 and is currently fueled and operated by Russia's Rosatom. The finalized '123 Agreement' positions U.S. firms to compete for replacement work at the station, including the potential deployment of next-generation American small modular reactors (SMRs).

Vice President Vance characterized the deal as a "classic win-win" scenario, emphasizing enhanced energy security for both nations alongside the creation of new employment opportunities. This development aligns with broader U.S. diplomatic objectives in the South Caucasus, which also involve advancing the Washington-brokered peace accord between Armenia and Azerbaijan, signed on August 8, 2025. Armenian Prime Minister Nikol Pashinyan stated that the signing would inaugurate a new phase in the deepening energy partnership.

The framework permits Armenia to consider proposals from various global technology vendors, including those from the United States, Russia, China, France, and South Korea, as the government works toward finalizing a development plan for new nuclear capacity by mid-2026. Discussions in Yerevan also addressed expanding U.S. exports of advanced technology, such as computer chips and surveillance drones, to bolster Armenia's infrastructure. Furthermore, the visit highlighted the proposed TRIPP (Trump Route for International Peace and Prosperity) corridor, a project central to ongoing peace mediation efforts intended to connect Azerbaijan with its Nakhchivan exclave through Armenian territory.

Section 123 Agreements serve as the legal foundation for significant U.S. nondefense nuclear cooperation, requiring adherence to stringent nonproliferation criteria, including maintaining strong International Atomic Energy Agency (IAEA) safeguards. As of early 2026, the U.S. maintained 26 such agreements in force with 50 countries, signaling a consistent policy of establishing legally binding frameworks for strategic civil nuclear partnerships.