U.S.-Armenia Nuclear Deal Sparks New Era in Energy Partnership

Armenia and the U.S. have signed a significant 123 Agreement, allowing the U.S. to license nuclear technology to Armenia. This deal facilitates up to $5 billion in initial exports, aiming to diversify Armenia's energy partners and possibly reduce its dependency on Russia. The agreement is part of broader geopolitical shifts in the region.

In a landmark move aimed at reshaping the energy landscape of the South Caucasus, Armenia and the United States signed a pivotal civil nuclear cooperation agreement on Monday. The agreement, finalized by Armenian Prime Minister Nikol Pashinyan and U.S. Vice President JD Vance, signifies a remarkable step towards diversifying Armenia's energy alliances.

The completion of what is known as a 123 Agreement enables the U.S. to legally license nuclear technology to Armenia, potentially resulting in up to $5 billion in initial U.S. exports. This agreement marks a critical effort by Washington to strengthen ties with Armenia, a nation historically aligned with Russia, amidst shifting geopolitical influences.

While no specific nuclear project has been selected, the agreement opens pathways for American companies to participate in building a new nuclear reactor for Armenia. Such a move could counterbalance Russian influence in the region, as Armenia seeks alternative partnerships to secure its energy future.

(With inputs from agencies.)