The United States and Armenia have finalized negotiations on a Section 1-2-3 agreement in the field of civil nuclear energy, opening the door for major joint projects, U.S. Vice President J.D. Vance announced following a meeting with Armenian Prime Minister Nikol Pashinyan.

According to Vance, the agreement enables an initial export of up to $5 billion worth of American technology and materials, alongside an additional $4 billion in long-term support through fuel and maintenance contracts, Armenpress reports.

“Once fully ratified, this paves the way for U.S. and Armenian companies to sign deals on civil nuclear projects,” Vance stated. “That means an initial $5 billion in exports from the U.S., plus an extra $4 billion in ongoing support through fuel and service agreements.”

“This is a textbook win-win. It strengthens energy security for my country and, I believe, for Armenia as well,” he added. “It’s also going to create a lot of new jobs in the United States.”

The agreement involves small modular reactors, with American technology set to arrive in Armenia. “Again, this is one of the few countries where we feel confident enough to invest at this level, and it’s happening thanks to the leadership of the Prime Minister,” Vance emphasized.

Vance arrived in Armenia on February 9 with his wife and children. He will travel to Baku from Yerevan.