Russia has called Armenia's possible demands for additional payments on the South Caucasus Railway groundless
31.07.2026,
15:58
Russian Economic Development Minister Maxim Reshetnikov called the idea that Russia should pay Armenia additional payments in the event of a unilateral revision of its obligations under the South Caucasus Railway groundless.
YEREVAN, July 31. /ARKA/. Russian Economic Development Minister Maxim Reshetnikov called the idea that Russia should pay Armenia additional payments in the event of a unilateral revision of its obligations under the South Caucasus Railway groundless.
"The South Caucasus Railway is not a 'free' asset of a Russian company, but an enterprise in which we have already invested over 30 billion rubles, purchased new rolling stock, and are developing infrastructure based on contractual obligations," Reshetnikov said, according to TASS.
According to him, if these obligations are unilaterally revised and the Russian investor suffers damages, Russia will have grounds to demand compensation.
"The idea that Russia should pay Armenia additional payments in such a situation is groundless," the minister said.
Reshetnikov commented on statements by Armenian Prime Minister Nikol Pashinyan regarding the management of the republic's railway infrastructure and the possible use of legally prescribed mechanisms to resolve issues related to the South Caucasus Railway concession.
Armenia's railway infrastructure is owned by the republic and transferred to the management of South Caucasus Railway CJSC, a wholly-owned subsidiary of Russian Railways. The concession agreement was signed in 2008 for a period of 30 years.
On July 30, Armenian Prime Minister Nikol Pashinyan admitted to financial claims of $2 billion against Russia in the context of the South Caucasus Railway concession. He stated that the railway is the property of Armenia and the republic has the right to use any legally prescribed mechanisms, including arbitration. Pashinyan also stated that Yerevan expects to resolve the issue amicably through dialogue with the Russian side.
Later that day, Russian Railways CEO Oleg Belozerov stated that the Russian side intends to adhere to the terms of the concession agreement and, if Armenia terminates or amends it, expects a return on its investment.
On Armenia's plans for the South Caucasus Railway
In February 2026, Pashinyan did not rule out the possibility of Russia transferring the management rights of the Armenian railway to another country friendly to both Armenia and Russia, specifically Qatar, the UAE, or Kazakhstan.
He also stated that, as part of the TRIPP project, several countries are proposing to establish a railway connection between Nakhchivan and the mainland of Azerbaijan bypassing Armenia, pointing out that the Armenian railway is managed by a Russian company. According to him, this would cause "Armenia to lose its competitive advantage."
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"The South Caucasus Railway is not a 'free' asset of a Russian company, but an enterprise in which we have already invested over 30 billion rubles, purchased new rolling stock, and are developing infrastructure based on contractual obligations," Reshetnikov said, according to TASS.
According to him, if these obligations are unilaterally revised and the Russian investor suffers damages, Russia will have grounds to demand compensation.
"The idea that Russia should pay Armenia additional payments in such a situation is groundless," the minister said.
Reshetnikov commented on statements by Armenian Prime Minister Nikol Pashinyan regarding the management of the republic's railway infrastructure and the possible use of legally prescribed mechanisms to resolve issues related to the South Caucasus Railway concession.
Armenia's railway infrastructure is owned by the republic and transferred to the management of South Caucasus Railway CJSC, a wholly-owned subsidiary of Russian Railways. The concession agreement was signed in 2008 for a period of 30 years.
On July 30, Armenian Prime Minister Nikol Pashinyan admitted to financial claims of $2 billion against Russia in the context of the South Caucasus Railway concession. He stated that the railway is the property of Armenia and the republic has the right to use any legally prescribed mechanisms, including arbitration. Pashinyan also stated that Yerevan expects to resolve the issue amicably through dialogue with the Russian side.
Later that day, Russian Railways CEO Oleg Belozerov stated that the Russian side intends to adhere to the terms of the concession agreement and, if Armenia terminates or amends it, expects a return on its investment.
On Armenia's plans for the South Caucasus Railway
In February 2026, Pashinyan did not rule out the possibility of Russia transferring the management rights of the Armenian railway to another country friendly to both Armenia and Russia, specifically Qatar, the UAE, or Kazakhstan.
He also stated that, as part of the TRIPP project, several countries are proposing to establish a railway connection between Nakhchivan and the mainland of Azerbaijan bypassing Armenia, pointing out that the Armenian railway is managed by a Russian company. According to him, this would cause "Armenia to lose its competitive advantage."
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