MOSCOW – Russia and Iran have formalized a significant agreement to construct small nuclear power plants (SMRs) within Iran, marking a pivotal moment in their bilateral energy cooperation and geopolitical alignment. The memorandum of understanding, signed in Moscow on September 24, 2025, by Alexey Likhachev, head of Russia's state nuclear energy corporation Rosatom, and Mohamad Eslami, Iran's top nuclear official, outlines a strategic project aimed at bolstering diplomatic and economic ties between the two nations.
This collaboration is set to address Iran's escalating energy demands and enhance its nuclear technology capabilities, with plans to develop eight nuclear power plants. The ambitious target is to secure 20 gigawatts (GW) of nuclear energy capacity by 2040. Currently, Iran operates a single nuclear power plant in Bushehr, a 1 GW facility also built by Russia, making this new venture a substantial expansion of Iran's nuclear energy infrastructure.
Small Modular Reactors (SMRs), the technology central to this agreement, offer distinct advantages over traditional large-scale nuclear power plants. These include enhanced safety features, factory production for cost efficiency and quicker deployment, and greater siting flexibility due to their smaller size and reduced water requirements. Their modular nature also allows for incremental additions as energy demand grows, providing a scalable solution.
Rosatom views this partnership as a strategic initiative to strengthen the diplomatic and economic relationship between Russia and Iran. This development occurs as Iran faces electricity shortages during peak demand months and amidst ongoing international scrutiny of its nuclear program. Iran maintains its nuclear intentions are for peaceful energy purposes, a stance supported by Russia.
The historical context of Russia-Iran nuclear cooperation includes the construction of the Bushehr plant, completed by Russia in 2011. This new agreement unfolds against a backdrop of complex geopolitics, with Russia having previously condemned bombings of Iranian nuclear facilities, underscoring a deepening strategic alignment. The collaboration is closely monitored by international actors due to its implications for regional security and global non-proliferation efforts.
Beyond energy security, the development of SMR technology is expected to foster technological advancement and expertise within Iran, contributing to the growth of related industries. This initiative aligns with national laws and international obligations, and its broader implications extend to the global energy landscape, where SMR technology is increasingly seen as a key component of future energy strategies.