Russia estimates $250 million cost to take over Armenia railways concession

Potential buyers seeking to take over the concession for managing Armenia’s railways would need to pay at least $250 million to acquire the rights and cover compensation, according to a preliminary estimate by Russian Security Council Deputy Secretary Alexey Shevtsov, cited by TASS.

The estimate comes after Armenian Prime Minister Nikol Pashinyan suggested that the current concession management of South Caucasus Railway CJSC — a subsidiary of Russian Railways — creates “certain competitive losses” for the country and proposed transferring the concession to third parties.

Shevtsov said additional costs would include around $40 million annually for operational expenses, about $400 million to restore the damaged Ijevan section, roughly $200 million for the Vanadzor–Fioletovo segment, and approximately $40 million to rehabilitate sections along the borders with Türkiye and the Nakhchivan Autonomous Republic.

He emphasised that the current concession agreement with the Russian side is structured on highly favourable terms for Armenia.

According to Shevtsov, freight volumes would inevitably decline if Armenia exits the Eurasian Economic Union (EAEU), a scenario that could be “easily verified in practice.”

He added that the actual socio-economic losses from breaking away from the EAEU could ultimately exceed expectations.

By Jeyhun Aghazada