Pashinian made clear that his government will not unilaterally scrap a 30-year management contract with the Russian Railways (RZhD) monopoly signed in 2008. He also seemed to walk back on his threats to charge RZhD as much as $2 billion annually for its management rights.

“I suggested this as one of the possible development scenarios without having anything specific in mind,” he told reporters.

“We want an amicable solution, we don’t want a [contract] dissolution,” he said. “We can always do it, we can do it today, but we don’t want to go down that path.”

The remarks contrasted with what Pashinian said on July 30 three days an apparently tense phone call with Russian President Vladimir Putin. He declared that there is “no alternative” to ending the Russian control of Armenia’s railways.

“If there is a disagreement, then we will go to arbitration to do something, to discuss,” he said.

The RZhD chairman, Oleg Belozerov, responded by saying that Yerevan would have to compensate his company for about $400 million in investments its claims to have made in the network since 2009. Russian Minister for Economic Development Maksim Reshetnikov echoed the warning. Reshetnikov said Armenia would also pay a heavy price for its exit from the Eurasian Economic Union.

Moscow has since continued to press Yerevan to call a referendum on remaining part of the Russian-led trade bloc or continuing to seek membership of the European Union. Pashinian remains reluctant to do that, mindful of the Armenian economy’s heavy dependence on Russia.

Pashinian first called for an end to RZhD’s presence in Armenia in February. He said the Armenian railway should be run by another, non-Russian company because its current status discourages Turkey and Azerbaijan from using a much larger section of Armenian territory for transit purposes.