Yerevan, Moscow hold talks as Russian railway chief arrives in Armenia

Prime Minister Nikol Pashinyan met with Oleg Belozerov, the head of Russian Railways, in Yerevan on Wednesday.

According to a government readout, the two discussed Russia’s management of South Caucasus Railway, the subsidiary that operates Armenia’s railways under a concession agreement. The readout specifically mentioned “the efficiency of management, existing problems and possible solutions.”

The wording refers to ongoing disagreements between Yerevan and Moscow over the railway concession, with Armenian leadership urging Russia to transfer its management rights to another country. Pashinyan first made such a call in January and repeated it several times throughout the year.

Also read: Pashinyan renews calls on Russia to give up Armenia’s railways

As Armenia pursues normalization with Turkey and Azerbaijan, it hopes to become a transit country for international cargo, a prospect that could be boosted by reopening railway connections with both neighbors.

However, Pashinyan has argued that Russian control over Armenia’s railways deters foreign companies and governments, although he has not explicitly explained why. His remarks likely refer to the sanctions risks and reputational costs associated with Russian ownership and management.

He has suggested countries including Kazakhstan and Qatar as possible operators. Neither has publicly commented on the proposals. Moscow has pushed back, calling the suggestion that Russia transfer the concession to a third country unacceptable.

Russian Railways took over Armenia’s railway network under a concession agreement signed in 2008, during the presidency of Robert Kocharyan. The 30-year deal is due to expire in 2038 unless Armenia agrees to extend it.

Russia’s management of the railway has faced criticism over the years for underinvestment, particularly in rolling stock and infrastructure, as well as the failure to implement expansion projects and financial controversies.

According to Pashinyan’s office, the prime minister and Belozerov agreed at Wednesday’s meeting to establish a joint working group to address the problems.

Speaking to reporters after the meeting, Belozerov said the question of transferring Russia’s railway concession in Armenia to a third country had not been discussed.