Russia pushes back on Pashinyan’s railway proposal

Moscow has reaffirmed its commitment to managing Armenia’s railways and investing in their infrastructure, responding to a proposal by Prime Minister Nikol Pashinyan that Russia sell its concession to a third country. Russia’s foreign ministry spokesperson made the comments at a press briefing on Wednesday.

“Russia makes significant investments into the infrastructure and rolling stock and also provides a large number of jobs,” Maria Zakharova said. She described Pashinyan’s suggestion as “weird and hardly acceptable,” adding that Russia’s control “does not deprive Armenia of competitive advantages, but rather creates them.” Zakharova also mistakenly claimed Russia has held the concession “for more than 20 years,” although the agreement was signed in 2008.

Last week, Pashinyan proposed that Russia sell its concession over Armenia’s railways to a third country with good relations with both Moscow and Yerevan. He argued that Russia’s involvement deters potential international partners, making them bypass Armenia for railway cargo logistics through the South Caucasus to Turkey and Europe.

The prime minister mentioned the United Arab Emirates and Qatar as potential operators, without specifying whether partners’ hesitation stems from Russia being an unreliable operator or from underinvestment and poor infrastructure.

As of now, the only country Armenia has a railway connection with is Georgia, which provides access to the sea through the port of Poti.

Russia took over management of Armenia’s railways during Robert Kocharyan’s administration, promising major investments and expansion projects. However, most projects were never completed, with several routes abandoned, including the cargo line from Yerevan to the resort town of Dilijan.

Many lines remain inactive since the 1980s, and active routes operate with outdated Soviet-era passenger trains from the 1960s. Rolling stock investment has been very limited, cargo carriages remain dilapidated, and several stations, even on operational routes, have been closed due to disrepair. Railway enthusiasts have noted poor track conditions on certain sections – this increases wear on trains and limits operating speed.

Discussions on railway renovations began last November as Azerbaijan launched fuel shipments to Armenia. The original railway connection between the two countries was severed in the late 1980s, with hostilities and landslides destroying key sections. Currently, Armenia and Azerbaijan must transit through Georgia, which imposes tariffs. 

Armenia also seeks to use Azerbaijani railways for trade with Russia, which would be cheaper than truck transit via Georgia. Georgia’s own rail link with Russia remains severed due to the route passing through the separatist region of Abkhazia.

Also read: Hopes and doubts surround plans to reopen the Armenia-Turkey railway

In December, Pashinyan asked Russian President Vladimir Putin to instruct Russian Railways, the parent company of the Armenian subsidiary, to carry out renovations restoring the connection with Azerbaijan and Turkey. Last week, Deputy Prime Minister Alexey Overchuk said Russia is open to conducting repairs. Pashinyan, however, insisted this would not be enough to attract transit partners and that Russia should give up its concession.Russian Railways is heavily reliant on subsidies from Russia’s federal budget, with its debt exceeding $50 billion.