Armenia and the United States signed a civil nuclear agreement on Monday to strengthen energy and diplomatic ties. The deal, formalized during Vice President JD Vance’s visit, follows a U.S.-brokered peace accord with Azerbaijan. Officials said it could reshape regional trade and energy dynamics.
The 123 Agreement allows the U.S. to legally license nuclear technology and equipment to Armenia. Vance highlighted potential economic gains, including $5 billion in initial exports and $4 billion in long-term fuel and maintenance contracts. Armenian Prime Minister Nikol Pashinyan called it a “new chapter” in bilateral energy cooperation.
Read more: Trump says Armenia, Azerbaijan commit to end fighting ‘forever’
For decades, Armenia has relied heavily on Russia and Iran for energy, with its aging Metsamor nuclear plant. The country is reviewing bids from U.S., Russian, Chinese, French, and South Korean firms for a new reactor. Analysts say diversifying nuclear partners is now a priority.
Vance’s visit also advances regional stability after the Armenia-Azerbaijan peace deal six months ago. A key component is the TRIPP corridor—a 43-kilometre route connecting Azerbaijan’s Nakhchivan exclave to Turkey through southern Armenia. The corridor could boost trade, rail, pipelines, and fiber-optic links.
Read more: Trump delivers ‘miracle’ peace pact between Armenia and Azerbaijan
Russia continues to advocate for its Rosatom nuclear proposal, calling it the most reliable option. Moscow is also evaluating the TRIPP corridor, signaling concern over growing Western influence in its traditional sphere. The U.S.-Armenia deal is seen as a significant pivot toward energy diversification and regional cooperation.