Pashinyan proposes RZD set up working group on problems of developing Armenian railroads

YEREVAN. Oct 15 (Interfax) - Armenia does not want Russia to lose the concessionary management of Armenia's rail network, Armenian Prime Minister Nikol Pashinyan said.

"RZD chief Oleg Belozyorov yesterday arrived in Armenia at my offer and invitation. And greeting him I said that our problem was related not to the Russian concession, but to our railroad having to be competitive," Pashinyan told a briefing on Thursday.

Analysis "shows that a rational format for that would be changing the concessionary format, i.e. delegating to a third party," Pashinyan said.

"But if our Russian colleagues say they know how to solve the issue, can offer solutions, then... Yesterday, as a result of our discussions, I said, let's create a group that would in three months' time give answers to the questions about how Armenia's railroad can become competitive," Pashinyan said.

"The Russian side says sanctions are no hindrance to that, we think that sanctions are a problem," he said.

"And if they have answers to the questions, then we do not set ourselves the task of not listening to them. We do want to resolve all issues, and will, as ever, be most friendly in relations with our friends, but the issues have to be solved," Pashinyan said.

RZD intends to adhere to the railroad concession agreement with Armenia, Belozyorov said after the talks with Pashinyan last Wednesday.

RZD signed the agreement with CJSC South Caucasus Railway, which operates Armenia's rail network, in 2008 for a 30-year period, with the option of a prolongation by 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.