Iran-Russia $25 Billion Nuclear Power Deal Amid Sanctions

Iran and Russia have signed a $25 billion agreement to build four nuclear power plants in Iran’s Hormozgan province, according to Iranian state media on September 26. The deal between Iran Hormoz company and Russia’s Rosatom comes just hours before the likely reimposition of UN sanctions on Iran.

Currently, Iran operates only one nuclear plant in Bushehr with a capacity of 1,000 megawatts, which meets only a small portion of the country’s energy needs. The new plants are expected to have a capacity of 1,255 megawatts each, though no timeline for construction was provided.

This development arrives as snapback sanctions—triggered by Britain, France, and Germany—are set to return by the weekend, accusing Iran of violating the 2015 nuclear deal. China and Russia proposed a Security Council resolution to extend talks for six more months, but it is unlikely to pass.

Western nations have long accused Iran of pursuing nuclear weapons, which Iran denies, insisting its program is for peaceful purposes. After the U.S. withdrew from the agreement in 2018, Iran began scaling back its commitments. Recent attempts to negotiate a new deal were disrupted by Israeli strikes on Iran in June, which briefly involved the U.S. Earlier, Iran had signed a nuclear energy deal with Russia in 1993 to build the Bushehr plant after Germany halted its involvement following the 1979 Islamic revolution.