US signs civil nuclear deal with Iran’s neighbour and Russia’s ally: What is 123 agreement?

Yerevan: The USA and Armenia have taken an important step in civil nuclear cooperation. On Monday, Prime Minister Nikol Pashinyan and US Vice President JD Vance signed the agreement during a two-day visit to the country. This was the first visit to Armenia by a US vice president.

The agreement demonstrates America’s intention to strengthen ties with Armenia, a country historically close to Russia. The agreement is officially known as the “123 Agreement” and legally allows the United States to transfer nuclear technology, equipment and fuel to another country.

Under this agreement, Washington will initially be able to export nuclear equipment and technology worth about five billion dollars to Yerevan. Additional contracts worth approximately $4 billion may come in the coming years, covering fuel supply and maintenance services.

The agreement is of strategic importance for Armenia. Vance emphasized that the partnership will chart a new route in energy cooperation between the two countries. Prime Minister Pashinyan described this as a new page in US-Armenia relations. Historically, Armenia has been largely dependent on Russia and Iran for its energy needs.

It currently operates a single nuclear power plant, Metsamor, which was built decades ago with Russian help. The plant is aging and Armenia plans to replace it with a new reactor. The country is examining offers from several international companies, including the United States, Russia, China, France and South Korea. There is no final decision so far, but the United States’ agreement may provide an advantage to American proposals.

Armenia is actively trying to reduce its dependence on Russia and diversify its nuclear partnerships. Vance’s visit therefore carries additional strategic weight. Six months ago, Armenia and Azerbaijan reached a peace agreement with the mediation of the USA. During the visit, Vance developed the ‘TRIPP’ (Trump Route for International Peace and Prosperity) initiative, which would create a 43-kilometer corridor through southern Armenia. This corridor will connect Azerbaijan to the Nakhchivan region and provide a direct route to Türkiye.

The corridor is expected to strengthen connectivity between Asia and Europe and bypass the traditional routes of Russia and Iran. Vance emphasized that the project will not only promote peace but also pave the way for economic growth for both Armenia and the United States.

After Armenia, Vance will continue his visit to Azerbaijan to discuss further regional cooperation and connectivity.