The United States and Armenia have announced a significant nuclear cooperation agreement, alongside the first military sales deal amounting to $11 million, which includes reconnaissance drone technology. This development marks a strategic pivot for Armenia, which has traditionally been allied with Russia, as the U.S. seeks to strengthen its ties with the nation following its mediation of a peace agreement in the South Caucasus earlier this year. The U.S. aims to further solidify this relationship, promoting stability in the region.

During a meeting in Yerevan, U.S. Vice President J.D. Vance highlighted the completion of negotiations on what is termed the '123 Agreement'. This pact facilitates the legal transfer of nuclear technology and equipment from the U.S. to Armenia, with initial American exports potentially reaching up to $5 billion. Furthermore, long-term contracts for fuel and maintenance services worth approximately $4 billion will bolster economic cooperation between the two countries. Vance also mentioned that Armenia has been granted licenses to purchase Nvidia chips, which will enable the establishment of data centers in the country, enhancing its technological capabilities.

Armenian Prime Minister Nikol Pashinyan expressed optimism about the new agreements, indicating they represent a new chapter in U.S.-Armenia relations. This collaboration not only strengthens defense and energy ties but also positions Armenia within the broader geopolitical framework, particularly as tensions with Russia rise. As Armenia navigates its foreign policy, the growing partnership with the United States could have significant implications for regional stability and development moving forward.