Moscow does not believe that Russian management of the South Caucasus Railway limits Armenia's competitive advantages
12.05.2026,
12:17
Moscow disagrees with the assertion that Russian management of Armenian railways limits Armenia's competitive advantages, Mikhail Kalugin, Director of the Fourth Department of the CIS Countries at the Russian Foreign Ministry, told TASS.
YEREVAN, May 12. /ARKA/. Moscow disagrees with the assertion that Russian management of Armenian railways limits Armenia's competitive advantages, Mikhail Kalugin, Director of the Fourth Department of the CIS Countries at the Russian Foreign Ministry, told TASS.
"We cannot agree with the assertion that Russian management of Armenian railways in any way limits Armenia's competitive advantages. On the contrary, we are convinced that it creates them," Kalugin said.
According to him, the South Caucasus Railway concession was discussed in detail during the talks between the Russian and Armenian leaders on April 1.
"All concerns of the Armenian side were clarified, and an understanding was reached on the modalities of further work, including in the context of Russia's participation in unblocking regional communications," the diplomat stated.
Kalugin noted that Moscow "recorded" Armenian Prime Minister Nikol Pashinyan's statement that the republic does not intend to discuss concession-related issues "behind Russia's back."
On Investments and the Role of South Caucasus Railways
According to Kalugin, without the "painstaking work of the Russian side within the framework of the concession to restore and maintain the functionality of the railway network," it would be more difficult to discuss the prospects of Armenia's participation in the "relaunch" of transport arteries in the South Caucasus.
The director of the Russian Foreign Ministry department recalled that since 2008, investments in Armenian railways have amounted to approximately 30 billion rubles. Furthermore, according to him, approximately 15 billion rubles have been paid into the Armenian budget, with part of the investment being used to upgrade the rolling stock.
"Incidentally, one of the new trains—for the Yerevan-Gyumri route—was tested directly by the prime minister and other representatives of the Armenian leadership," Kalugin noted.
He also stated that South Caucasus Railway remains one of Armenia's largest employers, providing approximately 2,500 jobs.
"For our part, we see great potential for mutually beneficial cooperation, one of the keys to which is the competent management of the Armenian railway network by Russian specialists," Kalugin noted.
Earlier, Prime Minister Nikol Pashinyan stated that Armenia does not intend to take any steps behind Russia's back or in defiance of it regarding the possible transfer of the concession for Armenian railways to Kazakhstan.
On railway discussions
Earlier, Pashinyan said that he had discussed the issue of the railway in Armenia with Russian President Vladimir Putin. According to Pashinyan, work in this direction is ongoing.
On April 2, Russian Deputy Prime Minister Alexey Overchuk stated that the Russian side learned about the possible transfer of the Russian concession for Armenian railways from colleagues in other countries; no one had discussed this directly with Moscow.
On April 7, the Kazakh Ministry of Transport and Kazakhstan Temir Zholy JSC stated that they were not negotiating the acquisition of the Russian concession for Armenian railways.
On Armenia's plans for the railway
In February 2026, Pashinyan did not rule out the possibility of Russia selling the right to manage Armenian railways to another country friendly to Armenia and Russia, specifically Qatar, the UAE, or Kazakhstan.
Pashinyan stated that, as part of the TRIPP project, several countries are proposing to build a railway link between Nakhchivan and the mainland of Azerbaijan, bypassing Armenia, pointing out that the Armenian railway is managed by a Russian company.
According to him, due to Russia's control of the Armenian railway, "Armenia is losing its competitive advantage."
Since 2008, South Caucasus Railways CJSC, a subsidiary of Russian Railways JSC, has been the concessionaire for the Armenian railway for a period of 30 years.
"We cannot agree with the assertion that Russian management of Armenian railways in any way limits Armenia's competitive advantages. On the contrary, we are convinced that it creates them," Kalugin said.
According to him, the South Caucasus Railway concession was discussed in detail during the talks between the Russian and Armenian leaders on April 1.
"All concerns of the Armenian side were clarified, and an understanding was reached on the modalities of further work, including in the context of Russia's participation in unblocking regional communications," the diplomat stated.
Kalugin noted that Moscow "recorded" Armenian Prime Minister Nikol Pashinyan's statement that the republic does not intend to discuss concession-related issues "behind Russia's back."
On Investments and the Role of South Caucasus Railways
According to Kalugin, without the "painstaking work of the Russian side within the framework of the concession to restore and maintain the functionality of the railway network," it would be more difficult to discuss the prospects of Armenia's participation in the "relaunch" of transport arteries in the South Caucasus.
The director of the Russian Foreign Ministry department recalled that since 2008, investments in Armenian railways have amounted to approximately 30 billion rubles. Furthermore, according to him, approximately 15 billion rubles have been paid into the Armenian budget, with part of the investment being used to upgrade the rolling stock.
"Incidentally, one of the new trains—for the Yerevan-Gyumri route—was tested directly by the prime minister and other representatives of the Armenian leadership," Kalugin noted.
He also stated that South Caucasus Railway remains one of Armenia's largest employers, providing approximately 2,500 jobs.
"For our part, we see great potential for mutually beneficial cooperation, one of the keys to which is the competent management of the Armenian railway network by Russian specialists," Kalugin noted.
Earlier, Prime Minister Nikol Pashinyan stated that Armenia does not intend to take any steps behind Russia's back or in defiance of it regarding the possible transfer of the concession for Armenian railways to Kazakhstan.
On railway discussions
Earlier, Pashinyan said that he had discussed the issue of the railway in Armenia with Russian President Vladimir Putin. According to Pashinyan, work in this direction is ongoing.
On April 2, Russian Deputy Prime Minister Alexey Overchuk stated that the Russian side learned about the possible transfer of the Russian concession for Armenian railways from colleagues in other countries; no one had discussed this directly with Moscow.
On April 7, the Kazakh Ministry of Transport and Kazakhstan Temir Zholy JSC stated that they were not negotiating the acquisition of the Russian concession for Armenian railways.
On Armenia's plans for the railway
In February 2026, Pashinyan did not rule out the possibility of Russia selling the right to manage Armenian railways to another country friendly to Armenia and Russia, specifically Qatar, the UAE, or Kazakhstan.
Pashinyan stated that, as part of the TRIPP project, several countries are proposing to build a railway link between Nakhchivan and the mainland of Azerbaijan, bypassing Armenia, pointing out that the Armenian railway is managed by a Russian company.
According to him, due to Russia's control of the Armenian railway, "Armenia is losing its competitive advantage."
Since 2008, South Caucasus Railways CJSC, a subsidiary of Russian Railways JSC, has been the concessionaire for the Armenian railway for a period of 30 years.
