Armenian Prime Minister Nikol Pashinyan has not ruled out the possibility that a dispute over the management of the country's railways could be brought to an arbitration court, and the possibility of demanding $2 billion a year from Russia.
Modern.az reports that the Armenian government hopes for a friendly resolution to the issue of Armenian railways, which are managed by South Caucasus Railway (SCR), a subsidiary of Russian Railways (RZD). Pashinyan stated that if an agreement is not reached, Yerevan may resort to an arbitration court and use legal means.
The Prime Minister noted that Armenia has the right to use the railway located on its territory as it deems appropriate. He also stated that in some cases, the government may be forced to make "de jure decisions."
Pashinyan recalled that back in February, he proposed to the Russian side to sell the concession for the country's railways to one of the states considered friendly to Moscow and Yerevan. He named Kazakhstan, the United Arab Emirates, and Qatar as possible candidates. According to him, Armenia has no position against Russia, but the existing concession creates certain competitive losses for the country.
Russian Minister of Economic Development Maxim Reshetnikov, however, called Pashinyan's statements unfounded. The minister stated that Armenia's demand for additional payments from Russia regarding SCR is devoid of legal basis. He emphasized that SCR is not a "free asset" for Russia, and more than 30 billion rubles have been invested in this enterprise.
The head of Russian Railways, Oleg Belozyorov, also stated that the company will continue to comply with the terms of the concession agreement. According to him, if Yerevan unilaterally changes or cancels the agreement, RZD will have the right to demand the return of its investments.
Belozyorov noted that a total of approximately 396.3 million US dollars has been invested in Armenian railways by RZD and SCR between 2008 and 2025. He added that the elimination of damage to the railway caused by the overflow of the Debed River was financed from Russia's Reserve Fund. In addition, new wagons and electric trains have been delivered to Armenia in recent years.
It should be noted that the agreement on the management of Armenia's railway system on a concession basis by SCR was signed in 2008. The agreement was concluded for a period of 30 years and can be extended for another 10 years by mutual consent.
