United States and Armenia Forge Civil Nuclear Partnership Amid Regional Shifts

The United States and Armenia have concluded a significant agreement to enhance cooperation in the field of civil nuclear energy, marking a new stage in bilateral relations as geopolitical dynamics shift in the Southern Caucasus.

During high-level discussions in Yerevan, the two countries finalized a framework allowing for the transfer of advanced American nuclear technology to Armenia. This arrangement, often referred to as a 123 Agreement, facilitates the licensure and export of U.S. nuclear equipment, technology, and materials to Armenia for peaceful purposes.

The partnership centers on Armenia's interest in modernizing its energy infrastructure, particularly as it seeks alternatives to the aging Metsamor nuclear facility, which was originally constructed with Russian technology. The agreement enables Armenia to consider American small modular reactor technology among several international options, including those from Russia, China, France, and South Korea. While the deal does not obligate Armenia to purchase U.S. reactors, it significantly broadens the country's choices in upgrading its energy sector.

According to official sources, the initial phase of this partnership could see up to $5 billion in U.S. exports to Armenia, with the possibility of an additional $4 billion directed towards long-term fuel supply and maintenance contracts. These investments are expected to support Armenia's transition to safer and more efficient nuclear energy technologies.

Beyond nuclear cooperation, the United States signaled readiness to facilitate the export of advanced technologies, including computer chips and surveillance drones, reflecting a broader commitment to boosting Armenia's technological capabilities and security infrastructure.

This agreement comes as Armenia is recalibrating its foreign relations in response to the evolving security environment in the region. Traditionally aligned with Russia, Armenia has recently suspended its security pact with Moscow and increased its engagement with Western partners, including the United States and the European Union. This strategic realignment follows regional instability stemming from the conflict in Ukraine and a series of hostilities with neighboring Azerbaijan.

In addition to energy and technology cooperation, the United States is actively engaged in mediating peace efforts between Armenia and Azerbaijan. Recent diplomatic efforts have brought the two nations closer to a comprehensive peace agreement after decades of conflict over the Nagorno-Karabakh region. The U.S. is advocating for the creation of a new transit corridor through Armenia, designed to connect Azerbaijan with its Nakhchivan exclave, aiming to promote economic integration and regional stability.

The proposed transit route, informally dubbed the Trump Route for International Peace and Prosperity (TRIPP), remains a point of contention between Armenia and Azerbaijan. However, both sides have publicly committed to renouncing territorial claims and refraining from the use of force, raising hopes for a lasting settlement in the region.

The United States' expanding role in the Southern Caucasus reflects a broader trend of former Soviet republics seeking alternatives to Russian influence. As Armenia deepens its cooperation with Western nations, agreements such as this civil nuclear partnership are expected to play a pivotal role in shaping the region's future economic development and security landscape.

Further diplomatic discussions are anticipated, with U.S. officials continuing their regional visits to support ongoing peace negotiations and to explore additional avenues for collaboration in areas of strategic importance.