Iran Approves $25B Russian Nuclear Plant

Rosatom, Russia's state nuclear corporation, is expanding its presence in Iran with a new $25 billion power plant. The facility, named Sirik, is located in Hormozgan Province near the Strait of Hormuz. Iran's state news agency IRNA reported the deal in September 2025. The new units will have a combined capacity of about 5 gigawatts. By comparison, the completed Bushehr complex on the southern coast will produce under 3 gigawatts.

Rosatom engineers are back on the ground at Bushehr. After the US-Iran war began in February, the company evacuated most of its staff. By October 11, 135 engineering and technical specialists had returned to work at the site. Construction continues on two additional reactor units at Bushehr. The second unit is more than 60 percent complete and targets an operational start in 2029. A third unit is also under way.

The partnership rests on a legal framework established in recent years. The Comprehensive Strategic Partnership Treaty entered into force in October 2025. An intergovernmental Cooperation Plan for 2024-2026 was approved in September 2024. Nikita Smagin, an analyst at the Carnegie Endowment for International Peace, wrote in November 2025 that the balance in the relationship is shifting in Russia's favor. He noted that Russia remains one of the few available sources of investment for Iran.

Russia views the cooperation as a way to maintain influence in the Middle East. Dmitry Kovchegin and Arkady Mil-Man of Israel's Institute for National Security Studies described Moscow's policy as a calculated balancing strategy in a June analysis. They said Russia offers limited assistance that does not alter the balance of power while seeking better relations with the United States.

International oversight of Iran's nuclear activities has weakened. The International Atomic Energy Agency (IAEA) published a report on June 4. Inspectors conducted a check at Bushehr from June 1 to 3. They could not inspect four uranium enrichment facilities during the reporting period. The agency could not verify the status of nuclear material at those sites. It also could not confirm whether Iran suspended enrichment and reprocessing activities as required by UN Security Council resolutions.

Sanctions drive the closer ties between the two nations. Russia faces Western sanctions following its invasion of Ukraine in February 2022. Iran has faced restrictions for decades over its nuclear program and missile development. The expansion of nuclear projects has raised concerns about transparency. The Arms Control Association stated in June 2025 that enrichment to 60 percent has no civil justification. That level of enrichment positions Iran to quickly produce weapons-grade material.