US Commits $9bn to Armenia’s Nuclear Energy as Vance Signs Landmark Deal in Yerevan

The United States will invest $9bn in Armenia’s nuclear energy sector, Vice President J.D. Vance announced on Monday during a briefing in Yerevan alongside Armenian Prime Minister Nikol Pashinyan, marking one of the most consequential economic outcomes of his regional visit.

“Today we signed a statement on the completion of negotiations on a nuclear cooperation agreement known as the ‘123 Agreement’. This will open the way for Armenian and American companies to implement future programs. We are talking about initial investments of $5bn, followed by another $4bn,” Vance said.

According to the US vice president, the agreement is designed to strengthen energy stability and security for both countries. “This is a mutually beneficial program for energy stability and security for both the United States and Armenia,” he added.

Vance said the cooperation would include the deployment of US technology in Armenia’s civilian nuclear sector.

“This means small modular reactors, that is, American technologies will come to Armenia,” he said.

The agreement on cooperation in the peaceful use of nuclear energy was signed following talks between Vance and Pashinyan, formally concluding negotiations on the so-called 123 Agreement, a legal framework required under US law for nuclear cooperation with foreign states. The deal is expected to enable long-term collaboration between Armenian and American companies in nuclear energy development.

While the signing underscored deepening strategic ties, the visit also unfolded against a backdrop of public pressure. During a protest near the presidential residence in Yerevan, demonstrators handed a letter to the visiting vice president calling for the release of Armenians held in Azerbaijan.

The appeal comes ahead of Vance’s planned trip to Baku later this week, where he is expected to hold talks with Azerbaijani officials as part of a broader South Caucasus tour focused on US-backed peace and connectivity initiatives.

Vance is currently in Yerevan as part of that visit, which Washington has framed as an effort to advance strategic cooperation, economic integration, and regional stability. The nuclear agreement, however, stands out as the clearest and most concrete deliverable so far.