The future of nuclear energy in Armenia is fast emerging as another flashpoint of acrimony between Armenian and Russian leaders.

The country’s aging Metsamor nuclear power plant, the first unit of which went online in 1976, is nearing the end of its lifespan. Armenia in late 2023 struck a deal with Russia to upgrade the facility and extend its operations until 2036. But with bilateral relations now experiencing a quick freeze, underscored by Armenia’s efforts to ice Russia out of the Armenian-Azerbaijani peace process, officials in Yerevan are openly exploring other nuclear-energy options.

Metsamor’s two units generate about 40 percent of Armenia’s electricity needs, and the facility already received one upgrade in 2016 that extended its lifespan a decade. For much of the 21st century, it has been plagued by safety concerns. In late August, for example, the plant experienced a lightning strike forcing it to disconnect for several days from the country’s electricity grid as a safety precaution.

Consistent with Armenia’s continuing geopolitical pivot away from Russia toward the West, senior Armenians government officials began signaling in July that they were in discussions with US officials to build a new plant.

The first step in this process is to put in place what officials describe as a “legal framework.” The transfer of nuclear technology is heavily regulated under US law, and certain safeguards must be in place before any firm commitments are made and construction breaks ground.

“[We] cannot move forward without this legal framework,” said Armen Grigoryan, secretary of Armenia’s Security Council, in July. “At this point, I can say that the ball is in the United States’ court.”

In August, a State Department official confirmed to Armenian news agency CivilNet that the US government was considering Armenia’s request to sign a bilateral nuclear compact, known as a 123 Agreement, which would allow the United States to transfer nuclear technology to Armenia, as well as share research and technical knowledge. The deal would be contingent on Armenia’s adherence to specified nonproliferation principles. 

The State Department did not respond to a Eurasianet request in time for publication seeking to clarify the timeline of its review of Armenia’s application.

Yerevan at this point has stopped short of confirming that a US firm will get the contract to build a new nuclear facility. Officials have hinted that they are keeping the door open for competitive bids from entities headquartered in China, France and even Russia. So far, Russian officials haven’t specifically commented on the potential US involvement in the construction of a new Armenian nuclear facility. 

For Armenia, the new power plant represents an opportunity to both achieve a symbolic split from Russia and reduce very real concerns of energy dependence on the Kremlin. Armenia presently imports fossil fuels from Russia to meet 80 percent of its energy needs, according to the International Energy Agency. 

“Nuclear energy stands as a cornerstone in our strategy, ensuring both the energy security of our nation and the mitigation of climate change,” said Prime Minister Nikol Pashinyan at the Nuclear Energy Summit in Brussels in March.