Armenia and the United States took a major step toward closer energy and diplomatic ties on Monday, signing a civil nuclear sector agreement during U.S. Vice President JD Vance’s visit to the South Caucasus nation.

The move follows a U.S.-brokered peace accord with Azerbaijan and could reshape regional trade and energy dynamics.

Armenian Prime Minister Nikol Pashinyan and Vice President JD Vance signed a statement formalizing cooperation in Armenia’s civil nuclear sector. Known as a 123 Agreement, it allows the U.S. to legally license nuclear technology and equipment internationally.

Vance highlighted the economic benefits, noting the deal could open up $5 billion in initial U.S. exports, with an additional $4 billion in long-term fuel and maintenance contracts. Pashinyan called it a “new chapter” in Armenia-U.S. energy partnership.

Energy diversification

For decades, Armenia has relied heavily on Russia and Iran for energy. Its only nuclear power plant, Metsamor, is aging and Russian-built. The country is reviewing bids from U.S., Russian, Chinese, French, and South Korean firms to construct a new reactor.

While Russia’s Rosatom remains ready to implement its proposal, political analysts in Yerevan say diversifying nuclear partners is now a priority, with Washington emerging as the preferred option.

Peace and prosperity

Vance’s visit also advances regional stability following the White House peace deal between Armenia and Azerbaijan six months ago. A centerpiece is the TRIPP corridor—a 43-kilometre route across southern Armenia connecting Azerbaijan’s Nakhchivan exclave to Turkey, bypassing Russia and Iran.

The corridor could enhance trade and transport between Asia and Europe, while integrating rail, pipelines, and fiber-optic infrastructure. Vance described the initiative as creating “real prosperity for Armenia and the United States together.”

Russia’s response

Deputy Russian Foreign Minister Mikhail Galuzin stated that Moscow still views its nuclear proposal as the most reliable option, emphasizing Rosatom’s readiness to proceed. Russia is also reportedly evaluating the TRIPP corridor proposal, reflecting Moscow’s concern over growing Western influence in its traditional sphere.