Mohammad Eslami, head of the Atomic Energy Organization of Iran (AEOI), left, and Alexei Likhachev, Director General of Rosatom, hold signed agreements on small nuclear power plants in Moscow on September 24, 2025. (IRNA)
In a significant development for international energy cooperation, Russia’s state-owned nuclear energy corporation, Rosatom, announced the signing of a memorandum of understanding (MoU) with Iran, focusing on collaboration in the construction of small nuclear power plants in the Islamic Republic. The agreement, formalized in Moscow on Wednesday, September 24, 2025, marks a new chapter in the deepening partnership between Moscow and Tehran in the realm of peaceful nuclear energy. The MoU was signed following a high-level meeting between Mohammad Eslami, head of the Atomic Energy Organization of Iran (AEOI), and Alexei Likhachev, Director General of Rosatom. This agreement underscores the strategic alignment between the two nations, which have maintained a robust relationship in nuclear energy development despite complex geopolitical dynamics.
The meeting between Eslami and Likhachev was characterized by an atmosphere of mutual trust, a cornerstone of the long-standing collaboration between Rosatom and the AEOI. According to Rosatom, the discussions covered a wide range of topics, including the progress of ongoing nuclear projects, future prospects, and a forward-looking agenda for cooperation in peaceful nuclear energy applications. The MoU specifically highlights the construction of small nuclear power plants, which are increasingly seen as a flexible and efficient solution for meeting energy demands in regions with varying infrastructural capabilities. These plants, often referred to as small modular reactors (SMRs), are designed to be more cost-effective, scalable, and quicker to deploy compared to traditional large-scale nuclear power plants.
Background and Context of the MoU
The signing of the MoU comes at a time when global energy demands are surging, and nations are seeking sustainable, low-carbon energy sources to meet both economic and environmental goals. Nuclear energy, with its ability to provide stable, high-output power with minimal greenhouse gas emissions, is experiencing a renaissance in many parts of the world. For Iran, a country with significant energy needs and a desire to diversify its energy mix, the development of nuclear power is a strategic priority. Russia, through Rosatom, has positioned itself as a global leader in nuclear technology, offering expertise, technology, and financing to countries looking to develop their nuclear energy sectors.
The collaboration between Russia and Iran in the nuclear domain is not new. The two nations have a history of cooperation, most notably in the construction and operation of the Bushehr Nuclear Power Plant, Iran’s first and only operational nuclear power facility. The Bushehr plant, located on the Persian Gulf, was built with Russian assistance under an intergovernmental agreement and began commercial operations in 2013. The success of this project has laid the foundation for further collaboration, culminating in the recent MoU.
According to the Iranian state news agency IRNA, Mohammad Eslami arrived in Moscow on September 22, 2025, to participate in a series of high-profile engagements. These included delivering a speech at events marking Russia’s Global Atomic Week, a platform for showcasing advancements in nuclear technology and fostering international partnerships. Eslami’s visit also involved tours of Russian nuclear facilities, meetings with scientific and research institutions, and discussions aimed at strengthening educational and research cooperation between the two nations. These activities reflect the multifaceted nature of the Russia-Iran nuclear partnership, which extends beyond infrastructure development to include knowledge transfer and capacity building.
Details of the MoU and Its Implications
The MoU signed between Rosatom and the AEOI is a non-binding agreement that sets the stage for further negotiations and technical discussions. While the document itself does not commit either party to specific actions, it signals a shared intent to explore the feasibility of constructing small nuclear power plants in Iran. These plants, typically with capacities ranging from 10 to 300 megawatts, are designed to provide localized power solutions, particularly in remote or underdeveloped areas where large-scale infrastructure projects may be impractical.
Small nuclear power plants offer several advantages. They require less upfront investment than traditional reactors, have shorter construction timelines, and can be deployed in a modular fashion, allowing for incremental capacity increases. For Iran, a country with diverse geographical and climatic conditions, SMRs could play a critical role in ensuring energy security, particularly in regions far from the national grid. Additionally, these plants can support Iran’s ambitions to reduce reliance on fossil fuels, align with global climate goals, and enhance energy independence.
The MoU builds on an existing intergovernmental agreement between Russia and Iran, under which Russia is committed to constructing eight nuclear power plants in Iran, four of which are planned for Bushehr. The Bushehr site, already home to Iran’s first nuclear power plant, is a strategic hub for the country’s nuclear energy ambitions. The additional plants, if realized, would significantly boost Iran’s nuclear power capacity, positioning it as a regional leader in nuclear energy production.
Strategic and Geopolitical Dimensions
The Russia-Iran nuclear partnership must be viewed within the broader context of their bilateral relationship and the geopolitical landscape. Russia and Iran share a history of cooperation in various domains, including energy, defense, and trade, often driven by mutual interests in countering Western influence and navigating international sanctions. Both countries have faced significant economic and political pressures from Western nations, particularly the United States, which has imposed sanctions on Iran over its nuclear program and on Russia over various geopolitical issues.
The nuclear cooperation between Moscow and Tehran is particularly significant given the scrutiny surrounding Iran’s nuclear activities. Iran’s nuclear program has long been a point of contention in international diplomacy, with concerns raised by Western nations and Israel about the potential for Iran to develop nuclear weapons. Iran has consistently maintained that its nuclear program is for peaceful purposes, such as electricity generation and medical research, and the MoU with Russia reinforces this narrative. By partnering with Rosatom, a globally recognized nuclear energy provider, Iran can strengthen its case for the peaceful use of nuclear technology while benefiting from Russia’s technical expertise and diplomatic support.
For Russia, the partnership with Iran offers both economic and strategic benefits. Rosatom, as a state-owned entity, plays a central role in Russia’s foreign policy, using nuclear energy projects to build alliances and expand influence. The MoU with Iran enhances Russia’s position as a key player in the global nuclear energy market, where it competes with other major players like China, France, and the United States. By supporting Iran’s nuclear ambitions, Russia also strengthens its ties with a key regional power in the Middle East, a region of critical geopolitical importance.
Technical and Economic Considerations
The construction of small nuclear power plants in Iran presents both opportunities and challenges. From a technical perspective, Rosatom brings significant expertise to the table. The company has developed a range of SMR designs, including floating nuclear power plants and land-based modular reactors, which have been deployed in Russia and offered to international partners. These designs are tailored to meet diverse energy needs, from powering remote communities to supporting industrial complexes.
For Iran, the adoption of SMRs could address several practical challenges. The country’s energy demand is growing rapidly due to population growth, industrialization, and urbanization. At the same time, Iran faces constraints in expanding its energy infrastructure, including limited access to international financing and technology due to sanctions. SMRs, with their lower capital requirements and modular design, could provide a viable solution. Additionally, these plants can be integrated with renewable energy sources, such as solar and wind, to create hybrid energy systems that enhance reliability and sustainability.
However, the implementation of the MoU will require overcoming significant hurdles. Financing is a major issue, as Iran’s economy has been strained by sanctions and economic mismanagement. While Russia has often provided financing for its nuclear projects in partner countries, the terms of such arrangements for Iran remain unclear. Additionally, the construction of nuclear power plants, even small ones, requires rigorous safety and regulatory frameworks to ensure compliance with international standards set by the International Atomic Energy Agency (IAEA). Iran’s adherence to these standards will be closely monitored, given the sensitivities surrounding its nuclear program.
Environmental and Social Impacts
The development of small nuclear power plants in Iran has significant environmental and social implications. On the environmental front, nuclear energy offers a low-carbon alternative to fossil fuels, which currently dominate Iran’s energy mix. By expanding its nuclear capacity, Iran can reduce greenhouse gas emissions and contribute to global efforts to combat climate change. SMRs, in particular, are seen as a sustainable option due to their efficiency and reduced environmental footprint compared to large-scale reactors.
Socially, the construction of nuclear power plants could bring economic benefits to Iran, including job creation, infrastructure development, and improved access to electricity in underserved regions. The partnership with Russia also includes provisions for educational and research cooperation, which could enhance Iran’s domestic expertise in nuclear technology. This knowledge transfer is critical for building a sustainable nuclear energy sector and fostering innovation in related fields.
However, nuclear energy projects often face public skepticism due to safety concerns, particularly in the wake of high-profile accidents like Chernobyl and Fukushima. Iran will need to invest in public outreach and transparency to build trust in its nuclear program. Additionally, the disposal of nuclear waste remains a challenge, requiring robust systems to ensure long-term safety and environmental protection.
Broader Implications for Russia-Iran Relations
The MoU on small nuclear power plants is part of a broader trend of deepening ties between Russia and Iran. Beyond nuclear energy, the two countries have collaborated on projects in oil and gas, transportation, and defense. Their partnership is driven by shared interests in regional stability, energy security, and resistance to Western hegemony. The nuclear cooperation, in particular, serves as a symbol of their strategic alignment and mutual reliance in the face of external pressures.
The timing of the MoU is also noteworthy. It comes at a time when global energy markets are undergoing significant shifts, with rising demand for clean energy and increasing competition among nuclear technology providers. By strengthening their nuclear partnership, Russia and Iran are positioning themselves to capitalize on these trends while reinforcing their bilateral relationship.
Challenges and Future Prospects
While the MoU represents a positive step forward, its success will depend on several factors. First, both parties will need to translate the non-binding agreement into concrete projects with clear timelines, budgets, and technical specifications. This will require sustained political will and coordination at both the governmental and technical levels. Second, the partnership must navigate the complex geopolitical environment, including potential opposition from Western nations and regional rivals. The IAEA and other international bodies will also play a critical role in ensuring that Iran’s nuclear activities remain transparent and compliant with global norms.
Looking ahead, the Russia-Iran nuclear partnership has the potential to reshape the energy landscape in the Middle East. If successful, the construction of small nuclear power plants could serve as a model for other countries in the region, demonstrating the viability of SMRs in addressing energy challenges. For Russia, the partnership reinforces its role as a global leader in nuclear technology, while for Iran, it represents a step toward energy diversification and technological advancement.
Conclusion
The signing of the MoU between Rosatom and the AEOI marks a significant milestone in Russia-Iran nuclear cooperation. By focusing on small nuclear power plants, the two countries are exploring innovative solutions to meet Iran’s growing energy needs while advancing their strategic partnership. The agreement builds on a foundation of mutual trust and shared interests, reflecting the broader dynamics of Russia-Iran relations in a rapidly changing global landscape.
As Mohammad Eslami’s visit to Moscow and the events of Global Atomic Week demonstrate, this partnership extends beyond infrastructure to include research, education, and capacity building. While challenges remain, including financing, regulatory compliance, and geopolitical tensions, the MoU sets the stage for a transformative collaboration that could have far-reaching implications for both nations and the global energy sector. As Russia and Iran move forward, the world will be watching closely to see how this partnership unfolds and what it means for the future of nuclear energy in the Middle East.
