In a significant move demonstrating deepening ties, Iran and Russia signed a monumental $25 billion agreement for the construction of four new nuclear power plants in southern Iran . The deal, signed between the Iran Hormoz company and Russia's state nuclear corporation, Rosatom, was announced on September 26, 2025, just hours before the anticipated reinstatement of sweeping United Nations sanctions on Iran . This partnership is widely seen as a strategic step by both nations to bolster Iran's civilian energy infrastructure despite continued pressure from Western powers.
The contract specifies the construction of four Generation III power reactors on a 500-hectare site in the Sirik region of Hormozgan province . Once completed, these new plants are projected to generate a combined 5,000 megawatts (5 GW) of electricity, a substantial increase to Iran's national grid . This development is crucial for a country that has suffered from periodic power shortages during times of high demand . The agreement expands upon a long-standing nuclear energy partnership; Russia was previously responsible for building Iran's only operational nuclear power plant in Bushehr, which has a capacity of approximately 1 GW .
The signing of this deal occurred against the backdrop of heightened diplomatic tensions at the United Nations. On the same day, the UN Security Council voted on a resolution drafted by Russia and China that sought to delay the reimposition of sanctions on Iran for six months . The resolution, which needed at least nine votes in favor and no vetoes from Western powers, was rejected by a vote of 4-9 with two abstentions . This failure paved the way for the "snapback" of stringent multilateral sanctions at the end of Saturday, September 27 . Russian diplomats criticized Western nations for refusing to compromise and for pursuing what Iran has labeled a "legally void, politically reckless and procedurally flawed" process .
Iran has consistently maintained that its nuclear program is exclusively for peaceful purposes, a position reaffirmed by President Masoud Pezeshkian at the UN General Assembly just days before the deal was signed . The country's pursuit of nuclear energy dates back decades, with initial U.S. support under the "Atoms for Peace" program in the 1950s and 1960s . However, the program has faced persistent external challenges. Following the 1979 Islamic Revolution, Western companies abandoned projects, and after the 2015 nuclear deal (JCPOA) was reached, the United States unilaterally withdrew from the accord in 2018, prompting Tehran to gradually roll back its commitments . The recent sanctions snapback was triggered by Britain, France, and Germany, further complicating the diplomatic landscape .
The $25 billion agreement with Rosatom represents a bold statement by Iran and Russia. For Iran, it is a practical step toward achieving energy sovereignty and meeting the needs of its growing economy, firmly asserting its right to peaceful nuclear technology under the Nuclear Non-Proliferation Treaty . For Russia, the deal solidifies its role as a key strategic partner to Iran and reinforces its influence in the Middle East. Analysts view the timing of the announcement as a clear signal that both nations are prepared to continue their cooperation despite Western sanctions, challenging a U.S.-led international order and advancing a vision for a more multipolar world . This partnership underscores a shared commitment to pursuing independent economic and energy policies.