Russian Railways responded to Armenia's statement on the railway concession. The main thing

On July 30, Armenian Prime Minister Nikol Pashinyan announced his intention to resolve the issue of the railway concession with Russia in a friendly atmosphere, but allowed arbitration in case of disagreement. In response, the head of Russian Railways, Oleg Belozerov, expressed surprise and bewilderment at the information that appeared in the press about the possible demands of the Armenian side under the concession agreement for the management of the South Caucasus Railway (SCR). All the details are in the Izvestia article.

Nikol Pashinyan's statement

The Armenian Prime Minister stated that Yerevan intends to resolve the issue of the concession for the management of Armenian railways with Moscow in a friendly atmosphere. At the same time, he admitted that in case of disagreement, the parties may apply to arbitration. Pashinyan stressed that the railways are the property of Armenia, and only the republic has the right to decide how to use them. He also allowed the possibility of charging Russia an annual fee of $2 billion for the use of the Southern Railway.

The issue of revising the concession was raised by the Armenian Prime Minister in connection with the need to repair sections of the railway leading to the borders with Azerbaijan and Turkey.

The reaction of Russian Railways

Oleg Belozerov, the head of the company, said that Russian Railways was surprised and perplexed to learn from the press about the possible demands of the Armenian side on the concession agreement. He stressed that the Russian side, represented by YUKZHD CJSC and its sole shareholder, Russian Railways, consistently and fully fulfills its obligations under the concession agreement of 2008.

Belozerov recalled that the concession made it possible to create a modern railway in Armenia, freeing the republic's budget from the costs of its restoration and maintenance. Dividends were never paid to the shareholder, all profits went to the development of the railway. From 2008 to 2025, investments from Russian Railways and the revenues of the SCR itself amounted to about $396.3 million.

The head of Russian Railways also noted that SCR is one of the largest national employers in Armenia. He stressed that all the rights and obligations of the parties are stipulated in the concession agreement, to which the Armenian government is a party. In the event of a change in the terms or termination of the concession agreement, Russian Railways has the right to expect a refund of the invested funds.

Context

The concession agreement, on the basis of which Russian Railways operates the Armenian railway transport system, was signed in 2008. The concession agreement expires in 2038. According to the agreement, the concessionaire has committed to invest about $ 400 million in the development of the Armenian railway infrastructure and invest about $170 million in the renovation of rolling stock.

In February 2026, Pashinyan already offered Russia to sell the concession for the Armenian railways to one of the friendly countries, for example, Kazakhstan.