Head of Russian Railways declared the right to a return on investment if the concession agreement with Armenia is amended
31.07.2026,
10:22
Russian Railways intends to adhere to the terms of the railway concession with Armenia, but has the right to expect a return on investment if the terms are changed or terminated at the initiative of the Armenian side, the company's head, Oleg Belozerov, told TASS.
YEREVAN, July 31. /ARKA/. Russian Railways intends to adhere to the terms of the railway concession with Armenia, but has the right to expect a return on investment if the terms are changed or terminated at the initiative of the Armenian side, the company's head, Oleg Belozerov, told TASS.
Since 2008, South Caucasus Railways (SCR), a subsidiary of Russian Railways, has been the concessionaire for the Armenian railway for a period of 30 years.
"All rights and obligations of the parties are spelled out in the concession agreement, to which the Armenian government is also a party. We intend to strictly adhere to it, and if the Armenian side considers terminating it or changing its terms, we have the right to expect a return on our investments," he said.
Belozerov emphasized that Russian Railways is consistently and fully fulfilling its obligations under the concession in Armenia. "It should be noted that the Russian side, represented by South Caucasus Railway CJSC and its sole shareholder, Russian Railways OJSC, has consistently and fully fulfilled its obligations under the 2008 Concession Agreement," he said.
Belozerov noted that the concession provided Armenia with a modern railway, freeing the republic's budget from the costs of its restoration and maintenance. Furthermore, all profits went toward the railway's development, and dividends were never paid to the shareholder.
Earlier on July 30, Armenian Prime Minister Nikol Pashinyan acknowledged financial claims 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 legal mechanisms, including arbitration. Pashinyan also stated that Yerevan hopes to resolve the issue amicably through dialogue with the Russian side.
On concessions and investments
In February 2026, Pashinyan did not rule out the possibility of Russia transferring management rights to 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 is causing "Armenia to lose its competitive advantage."
In February 2026, Russian Security Council Secretary Sergey Shoigu stated that Russian investment in the Armenian railway system over nearly 20 years has exceeded 30 billion rubles.
Since 2008, South Caucasus Railways (SCR), a subsidiary of Russian Railways, has been the concessionaire for the Armenian railway for a period of 30 years.
"All rights and obligations of the parties are spelled out in the concession agreement, to which the Armenian government is also a party. We intend to strictly adhere to it, and if the Armenian side considers terminating it or changing its terms, we have the right to expect a return on our investments," he said.
Belozerov emphasized that Russian Railways is consistently and fully fulfilling its obligations under the concession in Armenia. "It should be noted that the Russian side, represented by South Caucasus Railway CJSC and its sole shareholder, Russian Railways OJSC, has consistently and fully fulfilled its obligations under the 2008 Concession Agreement," he said.
Belozerov noted that the concession provided Armenia with a modern railway, freeing the republic's budget from the costs of its restoration and maintenance. Furthermore, all profits went toward the railway's development, and dividends were never paid to the shareholder.
Earlier on July 30, Armenian Prime Minister Nikol Pashinyan acknowledged financial claims 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 legal mechanisms, including arbitration. Pashinyan also stated that Yerevan hopes to resolve the issue amicably through dialogue with the Russian side.
On concessions and investments
In February 2026, Pashinyan did not rule out the possibility of Russia transferring management rights to 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 is causing "Armenia to lose its competitive advantage."
In February 2026, Russian Security Council Secretary Sergey Shoigu stated that Russian investment in the Armenian railway system over nearly 20 years has exceeded 30 billion rubles.
