Ammon News - Armenia and the United States agreed on Monday to cooperate in the civil nuclear sector as Washington sought to bolster ties with a former close ally of Russia, months after Washington brokered a peace agreement in the South Caucasus.

A statement on the nuclear sector deal was signed by Armenian Prime Minister Nikol Pashinyan and U.S. Vice President JD Vance, who is on a two-day visit to the country.

The two said they had completed negotiations on what is known as a 123 Agreement, which allows the U.S. to legally license nuclear technology and equipment to other countries.

The agreement will allow up to $5 billion in initial U.S. exports to Armenia, plus an additional $4 billion in longer-term fuel and maintenance contracts, Vance said.

"This agreement will open a new chapter in the deepening energy partnership between Armenia and the United States," Pashinyan said at a joint press conference with Vance.

Long heavily dependent on Russia and Iran for its energy supplies, Armenia is now reviewing proposals from U.S., Russian, Chinese, French and South Korean companies to construct a new nuclear reactor to replace its sole, ageing Russian-built nuclear power plant, Metsamor.

No choice has yet been made, but Monday's announcement paves the way for an American project to be selected. That would deal a blow to Russia, which traditionally has viewed the South Caucasus as its sphere of influence but whose clout there has diminished as a result of its invasion of Ukraine.

Reuters