The Armenian government plans to increase the subsidy provided to “South Caucasus Railway” CJSC for the loss received from passenger transportation by 65 million 222 thousand drams.

The relevant non-reportable project is included in the agenda of the July 16 session of the Government.

According to the project, the revenues and expenses of the state budget of 2026 will be increased by 65 million 222.3 thousand drams. All the money will go to the “Railway Network Development” project.

According to the results of 2025, the amount of the subsidy to be paid to “South Caucasian Railway” was 312 million 211 thousand AMD, while 246 million 989 thousand AMD was planned for this purpose in the 2026 state budget.

As a result, a creditor debt of 65 million 222.3 thousand drams was formed, which is planned to be paid off with the proposed change.

According to the concession agreement signed in 2008 between Armenia, “South Caucasian Railways” and “Russian Railways” companies, the state partially compensates the company’s annual loss from passenger transportation in the agreed directions.

The amount of compensation for the years 2016-2038 is set at 30 percent of the confirmed damage.

According to the rationale of the project, no additional financial burden will arise from the budget, as the subsidy is paid in an amount equivalent to the concession fee transferred by the company to the state budget.

The concession fee for 2025 also amounted to 312 million 211 thousand AMD, which the company paid to the state budget on June 4, 2026.

By adopting the project, the Government will ensure the fulfillment of the financial obligations assumed by the concession contract.

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