Iran and Russia have finalized a $25 billion agreement to construct nuclear power plants within the Islamic Republic, as reported by Iranian state media on Friday. This announcement comes just hours before the anticipated reinstatement of comprehensive UN sanctions against Iran.
State television announced, “A contract has been established for the construction of four nuclear power facilities in Sirik, Hormozgan, valued at $25 billion, between Iran Hormoz Company and Rosatom.”
Currently, Iran operates only one nuclear power station in Bushehr in the south, which has a capacity of 1,000 megawatts, addressing only a small part of the nation’s energy demands.
As reported by the IRNA news agency, each of the new plants is expected to have a capacity of 1,255 megawatts, although no timeline details were disclosed.
This agreement follows a visit to Moscow by Iranian Vice President and nuclear chief Mohammad Eslami earlier this week. Eslami mentioned that four of the upcoming reactors will be situated in Bushehr.
Since at least 2014, Russia has aimed to establish eight nuclear reactors in Iran as part of Tehran’s goal to achieve 20 gigawatts of nuclear energy capacity by 2040.
The $25 billion agreement comes in the context of imminent “snapback” sanctions, which were instigated by European parties to the landmark 2015 nuclear deal with Iran and are set to take effect by the end of Saturday.
Britain, France, and Germany initiated these sanctions last month, accusing Iran of not fulfilling its obligations under the agreement.
During a UN Security Council session on Friday, China and Russia proposed a draft resolution to extend negotiations for another six months, though it is unlikely to receive sufficient backing to pass.
Western nations have long alleged that Iran aims to develop nuclear weapons — a claim that Tehran strongly denies, asserting its right to a civilian nuclear program.
In 2018, the United States withdrew unilaterally from the nuclear agreement with Iran, prompting Tehran to progressively retract its commitments.
Negotiations between Washington and Tehran aimed at establishing a new deal were underway before being disrupted by unprecedented Israeli strikes on Iran in June, which led to a brief 12-day conflict that also involved the U.S.
Iran had previously entered into a nuclear energy agreement with Russia in 1993, which facilitated the construction of the Bushehr facility after Germany withdrew its involvement following the 1979 Islamic Revolution.
