Agreement between Rosatom and Iran targets energy expansion with eight new nuclear plants planned by 2040.
Published On 24 Sep 2025
Russia and Iran have signed a memorandum of understanding on the construction of small nuclear power plants in Iran, according the Russian state nuclear corporation Rosatom, as Tehran has been engaged in a diplomatic push to avert new sanctions over its nuclear programme.
The agreement was signed by Rosatom chief Alexei Likhachev and Iran’s top nuclear official, Mohammad Eslami, on Wednesday at a meeting in Moscow. Rosatom described it as a “strategic project”.
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Eslami, who is also Iran’s vice president, told Iranian state media earlier this week that the plan was to construct eight nuclear power plants as Tehran seeks to reach 20GW of nuclear energy capacity by 2040.
Iran, which suffers from electricity shortages during high-demand months, has only one operating nuclear power plant, in the southern city of Bushehr. It was built by Russia and has a capacity of approximately 1GW.
The development comes amid looming sanctions on Iran, after the United Nations Security Council voted on Friday not to permanently lift economic sanctions on Iran over its nuclear programme, meaning sanctions will return by September 28 if no significant deal is reached beforehand.
Russia was among four nations that voted to stop the sanctions from being reintroduced.
Iran pushed back against the UNSC vote, saying the resumption of sanctions would “effectively suspend” the country’s cooperation with the International Atomic Energy Agency (IAEA), the UN watchdog.
The vote followed a 30-day process launched in late August by the United Kingdom, France and Germany – known as the E3 – to reinstate sanctions unless Tehran meets their demands.
The E3 have accused Tehran of breaching its nuclear commitments, including by building up a uranium stockpile of more than 40 times the level permitted under a 2015 nuclear deal, from which Trump unilaterally withdrew in 2018, during his first term. The deal allowed Iran to enrich uranium up to 3.67 percent purity.
In its defence, Iran says it boosted its nuclear enrichment only after Trump withdrew from the deal and reimposed sanctions on the country. Tehran deems the US action a violation of the 2015 deal.
Iranian officials have accused the European trio of abusing the dispute mechanism contained in the 2015 Treaty on the Non-Proliferation of Nuclear Weapons (NPT), which allows for the application of sanctions under a “snapback mechanism”.
New sanctions would result in freezing of Iranian assets abroad, a halt in arms deals with Tehran, and penalise the development of ballistic missile programme, among other measures.
Iran has repeatedly denied pursuing nuclear weapons but affirmed its right to peacefully pursue nuclear energy. Addressing the United Nations General Assembly on Wednesday, Iran’s President Masoud Pezeshkian said Tehran would never seek a nuclear bomb.
On Tuesday, Iran’s Supreme Leader Ayatollah Ali Khamenei said Tehran will not directly negotiate with the United States over Iran’s nuclear programme, calling talks with the US “a sheer dead end”.
Tensions escalated this June, when Israel launched a 12-day war on Iran, with Israeli and US forces striking several nuclear facilities.