Pashinyan signals openness to compromise with Russia over Armenia’s railways

Prime Minister Nikol Pashinyan has told reporters that Armenia is seeking to negotiate a compromise with Russia over the Russian-run national railway, rather than unilaterally cancelling Russian Railways’ (RZhD) management contract.

Armenia’s railway system is owned by Russian Railways (RZhD) under a 30-year concession signed in 2008. Pashinyan first called for ending the RZhD’s presence in February, arguing that Russian control discourages investment from international partners. In July, he threatened arbitration and a $2 billion annual bill for RZhD’s management rights, triggering warnings from Russia.

When talking about the compromise solution on Thursday, marking a departure from previous statements where he called for an end to the 30-year agreement. Instead, Pashinyan suggested that Russia could sell its concession rights, but only partially and remain on as a shareholder in Armenia’s railways.

While he noted it would not be a quick fix, Pashinyan said the move would help Armenia to eventually join the wider international railway network — something that would not be possible with greater Russian shares in the network.

‘I suggested this as one of the possible development scenarios without having anything specific in mind’, he added.

Prior to this recent suggestion, Pashinyan in July threatened to sue RZhD for $2 billion annually for its management rights. This triggered warnings from both the Kremlin and RZhD itself. At the time, he stated that there was ‘no alternative’ to ending Russia’s control of the railway network and raised the idea of international arbitration. In response, RZhD chair Oleg Belozerov demanded that Yerevan compensate the company for around $400 million of investments made since 2009, while Russia’s economic development minister Maxim Reshetnikov called Armenia’s demand for additional payment ‘groundless’.

Pashinyan covers relations with CSTO and EAEU, Azerbaijani energy, and Simonyan’s new position

Pashinyan linked the railway issue to Armenia’s wider relationship with the EAEU and the Collective Security Treaty Organisation (CSTO). The EAEU had recently called on Armenia to hold a referendum to decide whether it wants to remain in the bloc or join the EU. The CSTO, a Russia-led security bloc, said it might discuss revoking Armenia’s voting rights in its upcoming November session.

‘There is an expectation, which Armenia has not agreed to, that it should maintain an exclusive relationship [with the bloc]’, Pashinyan said.

He argued that Armenia’s import and export trade being tied to a single direction is problematic in itself, and that the country needs to diversify its markets rather than remaining dependent on a single partner regardless of the situation with Russia.

Pashinyan also talked about Azerbaijani President Ilham Aliyev’s comments on recent visits by Azerbaijani specialists to Armenian power stations, addressing public concerns about these visits and mentioning that there have been two visits, both previously announced ahead of time.

Although there was an announcement about Azerbaijani delegations visiting Armenia in September 2025, the statement did not outline plans for Azerbaijani specialists to survey possible sites for power-line pylons. The press release about the second visit Pashinyan mentioned, dated 15 January 2026, is not available on the government’s website.

He also commented on a recent statement by Aliyev, in which he suggested that his country could supply Armenia with electricity.

In an interview, Aliyev said Azerbaijani specialists have conducted preliminary surveys in Armenia and identified possible sites for power-line pylons.

‘I hope the Armenian side will not delay a decision on this matter. After all, they themselves may need it most of all, given that their primary energy source today is a nuclear power plant — one that is not under their own control’, Aliyev said.

Pashinyan said that Armenia used to have an electricity surplus, but now the country might develop new demands due to growing AI facilities in Armenia that require a lot of energy.

‘Overall, however, our strategy is to achieve 100% energy independence’, he added.

The next talking point of the briefing covered non-combat deaths in the army. Pashinyan announced his intention to make personnel changes in the Military Police and the bodies directly responsible, following a recent death.

Although there have been no combat deaths in the army in the past year, an opposition MP from Armenia Alliance, Anna Grigoryan, announced in parliament on Tuesday that there have already been eight non-combat deaths in the first seven months of 2026. According to the Military Prosecutor’s Office, 30 soldiers died in non-combat conditions in 2025, 27 in 2024, and 54 in 2023.

Pashinyan also said that Yerevan’s real estate market is growing, driven by increasing interest from foreign nationals and the Armenian diaspora in purchasing apartments in the capital. He described this as a trendy development, adding that reforms are needed to facilitate transactions while boosting trust in the market.

Finally, he touched upon the appointment of former Parliamentary Speaker Alen Simonyan to the position of Secretary of the Security Council, replacing Armen Grigoryan. Asked about the appointment, Pashinyan stated that this type of political reshuffle is normal and that Grigoryan, who had served in the position for eight years, had been offered a position on his staff but had declined, choosing to step back and rest instead.

Strained economic ties with Russia

Separately, on Thursday, Armenian Economy Minister Gevorg Papoyan and Russian Agriculture Minister Oksana Lut met in Almaty, Kazakhstan, on the sidelines of the EAEU’s Council for Agro-Industrial Policy. The two ministers agreed to strengthen their cooperation on food safety, appearing to mark another step toward defusing the tension between the two countries since the parliamentary elections in Armenia.

The ministers discussed developing cooperation within the agro-industrial complex, as well as lifting the import restrictions on Armenia. The Food Safety Inspection Body of Armenia and Russia’s Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) are set to work more closely together to lift current restrictions on shipments of Armenian products to Russia, as well as on their transit to third countries.

Since May, Russia has restricted imports of certain agricultural products, alcoholic beverages, and soft drinks from Armenia as part of Moscow’s economic pressure on Armenia ahead and after the Armenian parliamentary elections of June.

Lut emphasised that resuming shipments hinges on Armenia ensuring compliance through measures such as verifying the use of local raw materials, controlling pesticides and making the supply chain traceable.