An Armenian Railways train run by Russian Railways
Prime Minister Nikol Pashinyan on Thursday continued to challenge Russia, three days after he initiated a telephone conversation with President Vladimir Putin of Russia.
Pashinyan said that he saw no other alternative than taking back control of the Armenian railways from Russia, a matter that further exacerbated relations with Moscow when he proposed earlier this year that a third party take over the management of the railways.
At the same time, Pashinyan had said that Yerevan has no plans to unilaterally cancel the agreement and will not take steps behind Moscow’s back. On Thursday he hinted at legal actions, without providing specifics.
Per an agreement signed in 2008, Russian Railways took over the management of the Armenian Railways for 30 years. A wholly Russian-owned subsidiary, the South Caucasus Railways, was created at the time to manage Armenian Railways.
Earlier this year, Pashinyan proposed that a non-Russian company take over the management of the railways, because, he said, its current status discourages Turkey and Azerbaijan from using a much larger section of Armenian territory for transit purposes in the near future. He suggested that Kazakhstan may be an option.
Russia’s Foreign Ministry dismissed Pashinyan’s statement as “bizarre” and “not acceptable.” Russia’s Deputy Prime Minister Alexei Overchuk also brushed aside Pashinyan’s declared rationale for stripping Russian Railways of its management rights. Overchuk also threatened far-reaching retaliatory measures against Yerevan.
“We want to resolve this issue amicably,” Pashinyan told reporters on Thursday, saying that there should also be a legal resolution.
In the event that the matter is not resolved through negotiations, then, Pashinyan said, Yerevan will seek arbitration.
Pashinyan did not clarify whether the possibility of resolving the issue through negotiations has been exhausted, since he already has announced his intention to resort to international arbitration. Under a concession agreement, a dispute enters an international tribunal only after a mutual agreement fails.
The prime minister clarified that the railway management issue was not discussed during his conversation with Putin earlier this week.
“There was no discussion regarding the railway, but our position regarding the railway remains the same: it is our property, and the Republic of Armenia should have the opportunity to use that railway as it sees fit. I want to be very clear on this issue, there is no alternative to this,” Nikol Pashinyan stressed.
Pashinyan also threatened to charge Russian Railways as much as $2 billion annually for its control of the Armenian railway. The Russian Railways chairman, Oleg Belozerov, was quick to respond, saying he was “surprised and bewildered” by the threat.
“All rights and obligations of the parties are specified in the concession agreement, to which the Armenian government is also a party. We intend to strictly maintain it, and if the Armenian side thinks about terminating it or changing its terms, we have the right to expect a return on our investments,” Belozerov told the TASS news agency.
Earlier, “Azatutyun” reported that in the event of terminating the railway concession, the government’s liabilities could amount to more than $273 million. This is stated in the medium-term state expenditure program of the Armenian government, adopted in June 2025.
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