Russian Railways will adhere to terms of railway concession in Armenia - company head
MOSCOW. Oct 14 (Interfax) - Russian Railways (RZD) intends to adhere to the railway concession agreement with Armenia, the head of RZD, Oleg Belozerov, said following talks with Armenian Prime Minister Nikol Pashinyan in Yerevan.
"We are open to dialogue with the Armenian government and to a joint assessment of the effectiveness of the concession agreement. For our part, we intend to firmly adhere to all commitments undertaken," Belozerov was quoted as saying by RZD's press service.
During the meeting, Belozerov spoke about the results of the activities of CJSC South Caucasus Railway (a subsidiary of RZD), which ensures the implementation of the concession agreement, and assured the Armenian government represented by the prime minister of the company's commitment to all reached agreements.
Following the meeting, the parties agreed to form a joint working group to assess the possibilities of transit links using Armenia's railway network.
During the meeting, "an exchange of opinions took place on the projects for reconstructing railways on the sections Gyumri-Akhurik [Armenia] - the border of Turkey and Yeraskh (Armenia) - Nakhchivan [Azerbaijan], as well as on the opportunities that open up as a result of these projects," the Armenian government's press service said.
Armenian Prime Minister Nikol Pashinyan said at the meeting with Belozerov that the Armenian government's goal is to increase the competitiveness of the country's railways and integrate them into the railway networks of neighboring countries and the international railway network, the press service said.
CJSC South Caucasus Railway, operating in Armenia, manages the country's rail transport system on the basis of a concession agreement concluded between RZD and Armenia in 2008. The agreement was signed for 30 years with the right of extension for another ten years.
In December 2025, Pashinyan requested that Russia restore railway sections in Armenia leading to the borders of Azerbaijan and Turkey as soon as possible. "I asked Russian colleagues to urgently take up the full restoration of the railway section from Yeraskh [southwestern Armenia] to the border of Nakhchivan [Azerbaijan] and from the Akhurik section [western Armenia] to the border with Turkey," he told journalists.
Later in December, Pashinyan said that Armenia was ready to take back the railway sections to the borders of Azerbaijan and Turkey from Russia's concession if there are difficulties with their restoration.
In July 2026, Pashinyan did not rule out the possibility of appealing to arbitration on the issue of the concession. "This is our property. Armenia should be able to use its railways as it sees fit. We want to solve the issue amicably. At any rate, it will be solved. [Should] differences arise, we'll discuss [them] later in the arbitration," he said.
In turn, Belozerov, commenting on this statement at that time, said that the company intends to entirely fulfill the commitments undertaken under the railway concession with Armenia, but has the right to expect a return on investments in the event of a change in conditions or its termination. Belozerov said that investments from RZD funds and South Caucasus Railway revenues from 2008 to 2025 amounted to around $396.3 million. Dividends to the shareholder were never paid; all profit went to the railway's development.
