Russia has reacted to US proposals to build a NPP in Armenia, after US Vice President JD Vance, during a visit to Yerevan, indicated that Armenia should adopt US small modular reactor (SMR) technology. He made the remarks after signing a joint statement with Armenian Prime Minister Nikol Pashinyan on the completion of negotiations on the Agreement on Cooperation between the Government of the Republic of Armenia and the Government of the United States of America in the Field of Peaceful Use of Nuclear Energy, known as a 123 Agreement. The agreement, which will provide the legal framework for export of nuclear material, equipment and components from the US to Armenia is named after Section 123 of the US Atomic Energy Act.
“Once this gets underway, it will pave the way for the American and Armenian companies to strike deals on civil nuclear projects. That means up to $5bn in initial US exports plus an additional $4bn in long term support through fuel and maintenance contracts.” Vance said. “It means small modular reactors, American technologies will be coming to this country. Again, this is one of the few countries where we feel confident enough to invest at this level, to send this kind of technology.”
The currently operating Armenian NPP (ANPP) at Metsamor was built in the 1970s with two Soviet-supplied VVER-440-V230 units but was closed following a devastating earthquake in 1988. However, unit 2 was recommissioned with Russian help in 1995 following severe energy shortages. In March 2014, the Armenian government decided to extend the plant’s service life to 2026. Most of the overhaul (until 2019) was funded by an interstate loan from Russia. In December 2024, following a meeting of the Armenian-Russian intergovernmental commission it was decided to extend the life of the plant until 2036. The Armenian government allocated $65m for the implementation of the programme, which is being undertaken by Russian company Rusatom Service.
Construction of a new nuclear plant has long been part of Armenia’s overall plan, although finance has proved to be an obstacle. In 2024, Pashinyan said it was planning to build a new NPP within 8-10 years, and a preliminary feasibility study for the construction of a new 1200 MWe unit was under consideration. At that time it was assumed that the new unit would be based on a Russian VVER-TOI reactor with a capacity of 1,200 MWe.
Rosatom continues to offer support to Armenia’s nuclear programme. Three days before Vance’s visit, Rosatom Director General Alexei Likhachev held talks with the Speaker of the Armenian National Assembly, Alen Simonyan. Likhachev gave a briefing on the progress of work to extend the life of the ANPP and also discussed in detail the construction of new nuclear power units. Rosatom subsequently said it is offering Armenia comprehensive cooperation in the field of nuclear energy including the construction of large, medium, and small-capacity NPPs and related projects, including non-nuclear ones.
Russian Security Council Secretary Sergei Shoigu, commenting on US intentions to build SMRs in Armenia, said the US often presents attractive business proposals, but noted that no such reactor has yet been built in the US.
“Yes, there are several companies in the US engaged in this field. Yes, they all have very appealing business proposals. However, as they say, there are nuances… To date, not a single small modular reactor has been built by the Americans, let alone commissioned or operated industrially.”
He also recalled that Armenia is located in a seismically active zone and said, if the SMR construction project in Armenia enters a practical phase, Russia and other regional states will have to take into account new nuclear safety risks.
“In essence, we must proceed from the understanding that American experiments in nuclear technologies would be carried out next to us, in a seismically hazardous area. Therefore, yes, this should be considered a threat. I would not like to draw parallels, but let me remind you that at Japan’s Fukushima-1 nuclear power plant, it was precisely American reactors that were damaged as a result of the earthquake, leading to large-scale radioactive contamination of the environment,” he said.
Shoigu also stressed that not even an approximate price per megawatt-hour of electricity to be generated from a SMR has been publicly disclosed, although this indicator is of fundamental importance. “If we are talking about NuScale Power’s 77 MWe modules, then the high cost of electricity was the reason the project failed in Utah. Even at the preparatory stage, the cost increased by one and a half times, and the projected electricity price rose from $58 per megawatt-hour to $89, which led to the project’s cancellation in 2023,” he noted.
He also pointed out that the US does not possess technologies for reprocessing used nuclear fuel. If the US project is implemented in Armenia, the used fuel would be stored within the country, whereas Russia typically takes back the used fuel for processing.
Shoigu said Armenia’s top leadership is aware of Russia’s initiatives in the field of nuclear energy. He emphasised that Rosatom is a leader in the number of NPPs built abroad, accounting for about 90% of the global market, and has unique experience in designing, constructing and operating SMRs.
“Without disclosing details, I will say that the conditions are extremely favourable, and the technologies are the most advanced, with reliability proven through many years of operation. I would hope that when our partners make the relevant decisions, sober calculation and the interests of the people will prevail, rather than a mindset in the spirit of ‘I’ll freeze my ears to spite my mother’,” he said.
Russian Foreign Ministry spokeswoman Maria Zakharova made similar comments. She said Armenia is free to cooperate with any partner it considers necessary, but choosing American nuclear technologies raises questions. “The small-capacity NPPs proposed by Washington do not exist even on US territory. In fact, they do not exist at all; they exist only on paper.”
She also noted that no concrete details had been provided regarding the $9bn investment mentioned by Vance. Zakharova said several Armenian media outlets had rushed to present the news as unprecedented US investment in the republic’s economy, but stressed that the key issue concerns the project’s financial model. She said that, according to information available to Russia, the plan does not involve direct US investment, but rather a scheme under which the Armenian side would be required to pay. Funding was expected to be carried out through the TRIPP Foundation, which is being created to implement infrastructure projects but has not yet been established.
The Trump Route for International Peace and Prosperity (TRIPP) is a 43-kilometre strategic transit corridor through southern Armenia designed to facilitate unimpeded connectivity between mainland Azerbaijan and its Nakhchivan exclave. The initiative was officially announced following an August 2025 summit at the White House with Pashinyan and Azerbaijani President Ilham Aliyev.
A newly formed TRIPP Development Company (TDC) will oversee the project in which the US holds a 74% controlling stake for an initial 49-year term. Armenia has granted the US exclusive rights to develop the transit area for up to 99 years through long-term leasing arrangements.
Zakharova said Russia is ready to explore preferential financial models for cooperation in the nuclear energy sector with Armenia, she told a press briefing. “Considering the nature of bilateral relations between our countries, we are ready to explore preferential financial models; we have also spoken about this repeatedly with the Armenian side. All these proposals remain on the table, but if you find a completed project of the aforementioned American model, please show it to us.”
She stressed that Russia is the only country that already operates small-capacity NPPs. “We have repeatedly offered our partners proven Russian solutions across all power ranges – small, medium, and large – demonstrating options that would allow nuclear energy to maintain a significant role in the republic’s energy balance, thus contributing to energy sovereignty.”
Similar points have been made by Robert Kocharyan, an Armenian politician who served as the second President of Armenia from 1998 to 2008 and is currently the leader of the Armenia Alliance, the main opposition force in the Armenian parliament.
He said the agreement signed with Vance does not imply investments. What is currently being presented to the Armenian people has no relation to reality. It’s nothing more than a storm in a teacup, he told Armenia’s Channel 5. He pointed out that the document signed with Vance merely “confirms the completion of negotiations”, and is not the agreement itself.
“The United States has signed a similar document with 26 countries, including Russia. This does not even imply a promise that a nuclear power plant will be built in Armenia…. They are simply promoting their nuclear technologies, and it is normal for a leader to try to introduce their country’s technologies to the markets of other countries,” he said
He added that the US lacks experience in building nuclear power plants aborad while its domestic NPPs require subsidies. “The most recent nuclear power plant constructed in the United States turned out to be quite costly for the country,” he noted, emphasising that the capital costs of generating 1 kW of installed capacity at a NPP in the US are five to six times higher than in Russia or China.
“No one will incur such expenses, as they will then be included in the tariffs,” he said. “This is business, not charity. If you can build a NPP of the same quality for five times less cost, then you’re imposing a burden on citizens that’s five times less.”
In the wake of the controversy, there has been some push back to US involvement. In response to a question in parliament from Deputy Speaker Ruben Rubinyan about when the ANPP would finally be closed and possible partners for a new plant, Pashinyan stated that Armenia was still deciding which NPP to build. He stated that the operational life of the Metsamor plant could be extended until 2046, whereas it was previously assumed to operate only until 2036. He added that a decision on constructing a new plant could be made during this period.
