In a move that draws both attention and questions, Iran and Russia announced on September 24, 2025, that they have signed a memorandum of understanding (MoU) to build small nuclear power plants in Iran. This step deepens their cooperation in energy and reinforces Tehran’s ambition to expand its nuclear capacity.
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What Does the Agreement Say?

The deal was formalized in Moscow between Rosatom (Russia’s state nuclear agency) and Iran’s Atomic Energy Organization (AEOI). The agreement is described as a strategic project by both sides.
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Under the MoU, Russia is expected to help build eight small nuclear power plants in Iran. Some reports say that four of those might even be located in the Bushehr region, which already hosts Iran’s only operating nuclear plant.
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Mohammad Eslami, Vice President of Iran and head of the AEOI, signed on Iran’s side. In recent statements, he noted that Iran’s goal is to reach 20 gigawatts (GW) of nuclear energy capacity by 2040, to help meet the country’s growing electricity demands.
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Why Iran Wants More Nuclear Plants

Iran currently has only one large nuclear reactor, located at Bushehr, with an output of about 1 GW.
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That power plant was also built with Russian help in past decades.
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Electricity shortages are common in Iran during the hottest months, when demand peaks. By diversifying and expanding its power mix, Iran hopes to reduce blackouts and improve energy security.
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Smaller nuclear plants can also be easier to manage on a regional scale, and less expensive per unit than very large reactors. They can be built closer to demand centers. If the plan succeeds, it could transform Iran’s energy landscape.

What This Means for Russia

For Russia, this deal reinforces its role as a key partner in Iran’s civilian nuclear program. Russia already helped build Bushehr and supplies services related to the nuclear fuel cycle.
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It also signals deeper strategic alignment between Moscow and Tehran, especially in the face of Western pressure and sanctions that often target Iran’s nuclear program.
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Concerns and Challenges

Peaceful Use vs. Weapons Ambitions
Iran insists the project is strictly for peaceful energy use, not for building nuclear weapons.
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But critics—especially in the West and Israel—are likely to scrutinize the project closely, seeing such agreements as possible covers for technology that might later be used militarily.

Technical, Financial, and Regulatory Hurdles
Building multiple nuclear plants is a complex, long-term endeavor. Iran must ensure technical standards, safety protocols, fuel supplies, and waste management.
Financing is another significant challenge, especially under international sanctions. Iran and Russia must find ways to fund construction, operation, and maintenance.

International Response
The deal may raise objections from countries worried about nuclear proliferation. International agencies like the International Atomic Energy Agency (IAEA) will likely watch Iran closely to verify compliance with safeguards.

What to Watch Next

Whether construction on some of these small reactor sites begins in the near future

How Russia and Iran manage funding, contracting, and oversight

What the IAEA and other watchdogs say about compliance

Reactions from Western countries, regional neighbors, and global powers

In simple terms: Iran and Russia have agreed to build several small nuclear power plants in Iran. Tehran hopes these plants will help with its electricity shortages and future energy needs. Russia sees a chance to expand its influence in Iran’s nuclear program. But many steps lie ahead—technical planning, funding, safeguards, and proof of peaceful intent will all be critical.