Russia and Iran Sign $25 Billion Deal to Build 4 Nuclear Plants

Iran seeks alternative sources to support its nuclear programs amidst Western sanctions (Wikimedia Commons)

Russian and Iranian authorities have agreed to a $25 billion deal commissioning the building of four civilian nuclear plants in Iran. Russia’s atomic energy agency publicized the deal on September 29, several months after an Israeli attack on Iranian nuclear facilities in Fordow, Natanz, and Isfahan severely derailed Iran’s ability to produce nuclear material.

Al Jazeera reports that the plants will be located in Bandar Sirik in southern Iran. The plants will add five gigawatts of capacity to Iran’s energy supply, increasing nuclear energy generation fivefold from the single gigawatt generated previously. According to Iran International, Iran ultimately hopes to increase production to 20 gigawatts, which would represent approximately 20 percent of Iran’s total capacity. 

The deal arose amid the reimposition of snapback sanctions on Iran over its nuclear program. Iran signed the Joint Comprehensive Plan of Action (JCPOA) with Western leaders and the UN in 2015, limiting its nuclear program in exchange for relieved sanctions. This relief was contingent upon Iran’s continued adherence to the JCPOA’s provisions, but Iran began enriching uranium beyond the agreed limits after President Trump abruptly withdrew from the accords in 2018. 

These sanctions will be the tightest ones since the JCPOA’s adoption, and come at a difficult time for Iran’s economy. The New York Times reports that Iran faces a 40% inflation rate, severe power and water shortages, and a growing budget deficit. Iranian businesses reportedly anticipate a slowdown in activity. However, Russia and China, two of Iran’s top trade partners, have already announced that they will not honor the snapback sanctions, which may partially alleviate the impact of the sanctions.

In spite of the sanctions, Iran has emphasized its resolve to continue its nuclear program. Ali Larijani, the Secretary of Iran’s National Security Council, told PBS reporters on September 27 that Iran’s nuclear program could “never be destroyed” by the US or Israel. Larijani indicated that if the UN and Western countries reimpose sanctions, Iran may suspend cooperation with International Atomic Energy Agency (IAEA) inspectors, which would prevent the international community from following Iran’s uranium enrichment measures.

Russia’s deal with Iran exposes a major flaw in the West’s sanction-heavy control strategy. While the snapback sanctions come amid hard economic times for Iran, Russia and China’s aforementioned refusal to implement them will soften their economic impact. Now that Iran has secured Russian economic and mechanical support for its nuclear program, a major target of Western sanctions, it has an alternative supplier of the parts that will be hit hardest by the measures. As a result, without buy-in from non-Western powers, Iran may be able to shield both its economy and its nuclear program from Western sanctions.