Iran to Build $25 Billion Russian Reactor Complex Near Strait of Hormuz
The Sirik project adds 5 gigawatts of capacity, expanding Moscow's influence as the IAEA reports it lost access to four key Iranian enrichment sites in June.
By Tunde Bailey ·
Iran and Russia have signed a $25 billion agreement to construct a new nuclear power plant in Iran’s Hormozgan Province. The facility, named Sirik, will be located near the Strait of Hormuz. Russian state corporation Rosatom will build the plant, which is designed to generate approximately 5 gigawatts of electricity.
This new complex is part of a long-term partnership that began in 1995 with the Bushehr plant on Iran's southern coast. Rosatom completed Bushehr's first reactor, which began full commercial operations in 2013. Today, the Bushehr site hosts 135 Russian engineering and technical specialists. This number reflects a return of staff following the US-Iran war that started in February, during which Rosatom initially evacuated most of its workers.
Construction at Bushehr is also expanding. A second reactor unit is more than 60 percent complete, with operations targeted for 2029. A third unit is currently under way. The legal framework for this expanded cooperation is the Comprehensive Strategic Partnership Treaty, which entered into force in October 2025. A specific roadmap, the Cooperation Plan for 2024-2026, was approved by both governments in September 2024.
For Russia, the deal provides commercial revenue and maintains strategic influence in the Middle East. For Iran, it secures access to nuclear technology and fuel supplies. Nikita Smagin, an analyst at the Carnegie Endowment for International Peace, wrote in November 2025 that the balance of the relationship is shifting in Russia's favor. He noted that Iran is in dire need of investment and that Russia remains one of the few available sources for such support.
The timing of the Sirik agreement coincides with reports of weakened international oversight. The International Atomic Energy Agency (IAEA) published a report on June 4 stating it conducted an inspection at Bushehr from June 1 to 3. However, the agency could not inspect four other declared nuclear sites during that reporting period. These sites include the most sensitive uranium enrichment facilities.
Because of this lack of access, the IAEA could not verify the status of nuclear material at those sites. The agency also could not confirm whether Iran had suspended uranium enrichment, reprocessing of spent fuel, or heavy-water-related activities. These processes are required to be monitored under United Nations Security Council and IAEA resolutions.
The expansion of nuclear projects occurs as both nations face Western sanctions. Russia has been under extensive sanctions since its full-scale invasion of Ukraine in February 2022. Iran has faced restrictions for decades over its nuclear program and regional military activities. The Center for Naval Analyses found in 2025 that the two countries have expanded military contacts and arms transfers since 2022.
The Sirik project is expected to tie Iran’s civilian nuclear sector to Russian technology for decades. The completed Bushehr complex has a capacity of under 3 gigawatts, making the new Sirik facility significantly larger. Analysts from Israel’s Institute for National Security Studies describe Moscow’s policy as a calculated balancing strategy. They note Russia offers limited assistance while seeking to improve relations with the United States.
