Pashinyan: Armenia railway concession could be sold for $400 million

Russia could sell the concession rights to Armenia’s railway for around $400 million, Armenian Prime Minister Nikol Pashinyan said.

“We are speaking openly with Russia; we are not hiding anything and we want to reach a mutual understanding on the issue of the railways. My assessment is that there is currently an opportunity to sell this concession right for approximately $400 million. I think this is a good opportunity,” Pashinyan told Armenia’s parliament, Caliber.Az reports.

Pashinyan said Armenia respected Russia’s interests but argued that Yerevan should not put another country’s interests ahead of its own.

“But it is illogical to prioritise the interests of another country over our own. And we ask, indeed urge, that we take this path,” Pashinyan said.

The South Caucasus Railway (SCR), which operates Armenia’s rail network, is a wholly owned subsidiary of Russian Railways (RZD). Under a concession agreement signed between RZD and Armenia in 2008, SCR manages the country’s railway system.

The agreement was concluded for 30 years, with an option to extend it for another 10 years.

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Armenian Prime Minister Nikol Pashinyan has called on Russia to show flexibility and allow the concession rights to Armenia’s railway to be transferred to a third country acceptable to both Yerevan and Moscow.

Speaking in Armenia’s National Assembly, Pashinyan said the railway remains Armenian property but is currently managed by Russian Railways, warning that the arrangement could prevent Armenia from taking advantage of a planned international transport link, Caliber.Az reports, citing Armenian media.

“The railway is the property of Armenia; it is merely managed by Russian Railways. We respect Russia and its interests, but because the Armenian Railways are under Russian management, we are now at risk of missing this historic opportunity to integrate Armenia into the international railway network. We cannot afford to let this historic opportunity slip through. TRIPP does not entail any foreign military or armed presence,” Pashinyan stated.

Pashinyan said Armenia was seeking an arrangement under which a third country acceptable to both Armenia and Russia would assume the concession rights, describing the move as necessary to advance the country’s integration into international transport networks.

By Sabina Mammadli