Russia’s President Vladimir Putin reacts as he attends a meeting during the World Atomic Week international forum, dedicated to the global nuclear industry, in Moscow on September 25, 2025. (Photo by Evgenia Novozhenina / POOL / AFP) (Photo by EVGENIA NOVOZHENINA/POOL/AFP via Getty Images)

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Amir Daftari

By Amir Daftari

News Reporter

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Iran has signed a $25 billion agreement with Russia’s state nuclear corporation, Rosatom, to construct four nuclear power plants, the state-run IRNA news agency reported Friday. The move expands on decades of cooperation between the two countries in the nuclear sector and comes as both seek to deepen ties under the weight of Western sanctions.

Atomic Energy Organization of Iran (AEOI) chief Mohammad Eslami described the partnership as part of a long-standing relationship with Moscow.

“We have good relations with Russia regarding cooperation in the construction of a nuclear power plant,” he said, framing the project as a step forward in Iran’s long-term nuclear strategy.

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Newsweek has reached out to the foreign ministries of Russia and Iran for comment.

From left; Iranian Vice President and the head of the Atomic Energy Organization of Iran Mohammad Eslami, Russian President Vladimir Putin, Uzbek Deputy Prime Minister Zhamshid Khodzhayev, Myanmar's military leader Senior General Min Aung Hlaing, IAEA Director General Rafael Grossi and Armenian Prime Minister Nikol Pashinyan speak ahead of a session in Moscow on September 25, 2025. (Mikhail Metzel / AP Photo)

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Why It Matters

Iran’s domestic electricity grid has faced repeated shortages during periods of high demand, leaving millions of households and industries vulnerable to blackouts. Expanding nuclear power provides Tehran with an additional source of energy to stabilize the grid while supporting its longer-term 20-year development plan.

The agreement also carries wider geopolitical weight. Israel has long accused Iran of advancing toward nuclear weapons capability, a claim Tehran denies, insisting its program is peaceful. Moscow, meanwhile, has condemned U.S. and Israeli strikes on Iranian nuclear facilities, framing them as destabilizing acts. Against this backdrop, the new partnership highlights how Iran and Russia are using nuclear cooperation as a symbol of defiance against Western pressure.

What to Know

The $25 billion agreement represents one of Iran’s largest nuclear projects to date and significantly expands cooperation with Russia in both large-scale and small-scale reactor technology. The deal combines the construction of new full-size power plants with a push into small modular reactors, marking a major step in Tehran’s long-term energy strategy.

Four New Nuclear Power Plants

The facilities will be Generation III reactors built on a 500-hectare site in Iran's southern Hormozgan province. Once completed, they are expected to produce 5,000 megawatts of electricity. By comparison, Bushehr—the country’s only currently operating nuclear facility, also built by Russia—contributes around 1 gigawatt.

Iranian Vice President Mohammad Eslami, the head of the Atomic Energy Organization of Iran, speaks during a session at the World Atomic Week forum in Moscow on September 25, 2025. (Evgenia Novozhenina / AP Photo)

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Small-Scale Reactor Cooperation

Alongside the main deal, the AEOI signed a memorandum of understanding with Rosatom for the construction of small modular reactors (SMRs). Officials said Iran has already conducted studies on SMRs and highlighted the importance of advancing projects in cooperation with Russia as the global energy industry moves in this direction.

United Nations Vote

Meanwhile, the U.N. Security Council is set to vote Friday on a resolution, proposed by Russia and China, to delay the re-imposition of sanctions on Iran for six months. Diplomats, however, indicated the measure is unlikely to pass. All U.N. sanctions on Iran are currently scheduled to be reinstated at Saturday at 8:00 p.m. Eastern Time, following a 30-day process triggered by Britain, France and Germany, which accused Tehran of violating the 2015 nuclear agreement designed to prevent it from developing a nuclear weapon.

Ahead of the vote, Iranian Foreign Minister Abbas Araghchi took to X to express the hope that members would support the resolution to delay sanctions. He emphasized that such a decision would favor diplomacy over confrontation and provide space for negotiations to succeed.

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What People Are Saying

Head of Iran’s Atomic Energy Organization Mohammad Eslami: “While reviewing the current cooperation and topics of interest of the two countries, we have been able to make optimal use of the opportunity of strategic cooperation between Iran and Russia.”

Iranian Foreign Minister Abbas Araghchi: "It is a fleeting opportunity for the Council to say 'No' to confrontation and 'Yes' to cooperation, providing time and space for diplomacy."

What Happens Next

The four new power plants will take years to complete, but they could transform Iran’s energy landscape and strengthen its strategic partnership with Russia. Meanwhile, the upcoming UN Security Council vote on sanctions will test Tehran’s diplomatic maneuvering and may influence how the deal is perceived internationally. As both energy and diplomatic developments unfold, the project is likely to remain a focal point for regional tensions and global scrutiny.

Russian President Vladimir Putin reacts as he attends a meeting during the World Atomic Week international forum in Moscow on September 25, 2025. (Evgenia Novozhenina / Getty Images)

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