Russia Rattled by America’s Nuclear Move in Armenia

Why It Matters

The deal could reshape the nuclear energy landscape in the South Caucasus, reducing Russia's revenue from Rosatom and altering geopolitical leverage. It also showcases how energy projects are becoming tools of great‑power competition.

Key Takeaways

• US-Armenia pact favors modular reactor technology
• Russia offers financial incentives to retain Armenian nuclear partnership
• Kremlin claims US reactors untested, costlier, slower
• Armenia's shift signals broader Eurasian realignment away from Moscow
• Rosatom revenue crucial for funding Russia's Ukraine war effort

Pulse Analysis

The February 9 nuclear cooperation agreement between Washington and Yerevan marks a decisive move toward small‑modular reactors, a technology the United States has championed as a flexible, lower‑carbon alternative to traditional large‑scale plants. For Armenia, the appeal lies in diversifying its energy sources and reducing reliance on the aging Metsamor facility, which has long been tied to Russian fuel and expertise. By aligning with U.S. firms, Yerevan hopes to attract Western investment, modernize its grid, and signal a broader diplomatic pivot toward Europe and the United States.

Moscow’s reaction has been swift and multifaceted, combining rhetorical attacks with a carrot‑and‑stick approach. Kremlin spokespersons have dismissed the American technology as untested and expensive, while senior officials have rolled out a package of preferential financing, agricultural aid, and railway reconstruction promises aimed at keeping Armenia within the Russian sphere. This response underscores how Rosatom’s cash flow—vital for sustaining Russia’s military budget amid the Ukraine conflict—has become a strategic lever. The Kremlin’s willingness to bundle non‑energy incentives highlights the depth of its concern over losing a lucrative client in a region where nuclear projects have historically been a source of hard currency.

The fallout extends beyond Armenia, as neighboring states like Azerbaijan and Kazakhstan are also courting U.S. nuclear partners, hinting at a regional shift in energy geopolitics. If American modular reactors gain foothold, Russia could see a contraction of its traditional market share across the Eurasian corridor, prompting a recalibration of its foreign‑policy tools. Analysts predict a protracted contest where economic incentives, technology credibility, and geopolitical narratives will determine which power secures the next wave of nuclear infrastructure in the post‑Cold War landscape.

Russia Rattled by America’s Nuclear Move in Armenia

By Eurasianet · Feb 16 2026, 1:00 PM CST

• The U.S.–Armenia nuclear cooperation deal has triggered a sharp Russian backlash, including public criticism and lucrative counter‑offers.

• Armenia appears inclined toward American modular reactor technology as part of a wider effort to reduce dependence on Moscow.

• The dispute reflects a larger strategic contest, as Washington seeks to penetrate Russia’s traditional dominance in Eurasian nuclear markets.

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During the Cold War, the Kremlin worried about the threat posed by American nuclear missiles. Now, Russian leaders seem panicked at the thought of an American nuclear reactor at their doorstep.

Since the United States and Armenia signed a nuclear cooperation deal on February 9 during Vice President JD Vance’s visit to Yerevan, the Kremlin has seemingly gone to a civilian equivalent of DEFCON 3 with a wide‑ranging effort to scuttle the construction of a US‑designed nuclear plant on Armenian soil. In addition to media brickbats to discredit US reliability, the Kremlin is offering lots of economic incentives to encourage Armenian leaders to remain loyal to Russian nuclear technology.

While the Armenian government has not awarded a contract to replace the aging Metsamor nuclear facility, multiple signs suggest that Prime Minister Nikol Pashinyan’s government heavily favors an American solution as part of a broader diplomatic realignment designed to reduce Russia’s economic influence over Armenia. Prior to signing the bilateral nuclear cooperation deal, Armenian officials disclosed that the country’s next nuclear plant would have a modular design. The US is seen as a global leader in modular nuclear technology.

Beyond Armenia, the Trump administration is making a push to expand into what has traditionally been Russia’s nuclear market in Eurasia. Azerbaijan has committed to exploring nuclear energy cooperation as part of a strategic partnership agreement signed on February 10. And late last December, Kazakhstan indicated an interest in exploring American modular nuclear technology.

The shrill, multifaceted reaction by Russia to the US‑Armenian nuclear deal indicates that the Kremlin is alarmed about its teetering position in the regional atomic energy market. Moscow’s concerns are not only driven by geopolitics; financial considerations are another major factor. Rosatom, Russia’s state‑controlled nuclear entity, is a cash cow for the Kremlin, generating desperately needed revenue to maintain the Ukraine war effort.

Russia is pursuing a variety of lines of attack. Kremlin spokesman Dmitry Peskov suggested that the lack of experience of US nuclear energy companies operating in Eurasia would mean that an American‑built reactor would take longer and cost more than any plant built by Rosatom. “Russia is capable of providing better quality for many years to come at a lower cost,” he claimed during a February 11 press briefing.

The following day, Russian Foreign Ministry spokeswoman Maria Zakharova heaped scorn on American nuclear modular technology, hinting that it is untested and thus dangerous.

“The choice of American technology truly raises questions,” she stated at a press briefing. “The small nuclear power plants … proposed by Washington are not only not found in the US itself, but they don’t even exist – they exist only on paper.”

Armenia “will essentially be used as a testing ground for truly unproven American technologies,” she continued, adding that the cost of an American modular reactor “could be significantly higher than the estimates featured in the ‘advertising brochures.’”

After slinging arrows at the United States, Zakharova attempted to blow some kisses to Pashinyan’s government. “Given the nature of bilateral relations between our countries, we were prepared to develop preferential financial models,” she said. “All proposals remain on the table.”

In addition to offering a sweetheart deal for the next nuclear plant, Russia is pitching substantial assistance to Yerevan to improve the Armenian agricultural sector and restore the country’s rail network.

“Based on friendly and fraternal feelings for the people of Armenia, the Russian Federation has decided to begin substantive negotiations on the restoration of two sections of Armenian railways, which will ensure their connection with the railways of the Republic of Azerbaijan near the town of Yeraskh, as well as with the railways of the Republic of Turkey near the settlement of Akhuryan,” the Interfax news agency quoted Russian Deputy Prime Minister Alexei Overchuk as saying.

By Eurasianet