FM says TRIPP will bring Armenia-US economic cooperation to unprecedented leve

The framework agreement between Armenia and the United States on the TRIPP project establishes a new level of economic cooperation while affirming Armenia’s sovereignty and jurisdiction over infrastructure operating under the program, Minister of Foreign Affairs and International Trade Ararat Mirzoyan told lawmakers.

He presented to MPs at the Parliament’s Committee on Foreign Relations a bill on ratifying the Framework Agreement between the Republic of Armenia and the United States of America on Strategic Cooperation Concerning the Trump Route for International Peace and Prosperity (TRIPP).

“This is a new level of economic cooperation between Armenia and the United States, one that has never existed before. It is clear that the United States will have a significant involvement and will also pursue its economic interests here,” Mirzoyan said.

According to the minister, the expected benefits for Armenia from implementing the agreement include unblocking the country, expanding connections with the East and West, and creating new opportunities to participate in international transportation. Armenia will have the opportunity not only to export its products and import necessary goods, but also to become an important link in the transportation chain between third countries.

Mirzoyan noted that just as Azerbaijan will have the opportunity to connect with Nakhchivan and third countries through Armenia’s territory and infrastructure, Armenia will likewise have reciprocal opportunities to ensure domestic connectivity through Azerbaijan’s territory and infrastructure and reach third-country markets. In this context, he recalled that Armenia currently has no north–south railway connection in operation.

The minister also emphasized the impact of economic interconnectedness on strengthening peace. In his assessment, both economic ties between Armenia and Azerbaijan and the interests of other countries along the East–West route could positively affect the stability of the political situation.

He identified two main aspects of the project: economic opportunities and the strengthening of peace, stressing that the latter is no less important than the former.

Referring to the process leading up to the agreement, Mirzoyan recalled the August 8, 2025, meeting in Washington attended by Armenian Prime Minister Nikol Pashinyan, Azerbaijani President Ilham Aliyev, and U.S. President Donald Trump. The joint declaration adopted at the meeting recorded commitments to strengthen peace and open communications on the basis of the countries’ sovereignty, jurisdiction, and territorial integrity.

At the next stage, on January 13, 2026, the TRIPP Implementation Framework was presented. According to the minister, that document set out more clearly the principles for constructing, reconstructing, and operating infrastructure, dispelling a number of concerns surrounding the project.

The Framework Agreement was initialed on May 26 during U.S. Secretary of State Marco Rubio’s visit to Yerevan, then signed on June 1 in Washington and on June 4 in Yerevan. According to Mirzoyan, the necessary procedures have been completed, and the Constitutional Court has recognized the obligations enshrined in the agreement as compliant with the Constitution.

The minister explained what work would remain after ratification.

“We must sign the shareholders’ agreement and approve the company’s charter. Perhaps with that, the fundamental paperwork steps necessary to launch TRIPP will have been completed. The purpose of this agreement is also to regulate these matters,” he said.

Mirzoyan specifically addressed the safeguards for preserving Armenia’s sovereignty and jurisdiction, noting that the word “sovereignty” appears eight times in the document.

“Any relationship that is established and any infrastructure that is put into operation will take place entirely and in detail on the basis of, or under, these fundamental principles, within their framework. These principles are familiar to all of you: sovereignty, territorial integrity, and jurisdiction. With regard to infrastructure located on our territory, naturally, the Republic of Armenia has jurisdiction—absolute jurisdiction,” the minister emphasized.

The proposed agreement envisages establishing a TRIPP Development Company in Armenia. The American side’s TRIPP Development Company (TDC) will hold a controlling 74% stake, while Armenia will hold 26%.

The American company must be established in the state of Delaware as a wholly owned subsidiary of the U.S. International Development Finance Corporation. It must remain under U.S. ownership and control at all times; no third party may acquire ownership rights in it.

The Development Company’s charter will be governed by Armenian law, while the shareholders’ agreement will be governed by the laws of the United States and the State of New York.

TRIPP includes railway, road, oil and gas pipeline, fiber-optic, and energy projects. The Development Company may establish special-purpose subsidiaries to implement individual components.

Changes in the company’s control, transfers of shares, the establishment and ownership of subsidiaries, certain major financial and contractual transactions, the granting of concession rights and their final terms, as well as national security and political matters, will be governed by special mechanisms requiring the mutual agreement of the parties.

To facilitate the necessary transactions of the company and its subsidiaries, Armenia agrees to provide exemptions, where necessary, from legislation on joint-stock companies, procurement, and public-private partnerships.

The project implementation areas will be determined by mutual agreement between the parties, also taking into account feasibility and design studies. Armenia must ensure that the relevant land is state-owned or can become state-owned and is free of encumbrances and third-party rights, bearing the financial costs of these processes.

The Development Company will be granted exclusive land-use and development rights for an initial term of 49 years. These rights may be transferred to subsidiaries implementing the projects.

Upon expiration of the term, the parties may, by mutual agreement, extend the rights for another 50 years. In that case, Armenia’s stake in the company must increase to 49%. 

The extension of the term will be the sole consideration provided by Armenia in exchange for the increase in its ownership stake in the TDC.

Upon expiration of the development rights, termination of the company’s operations, or mutual agreement of the shareholders, the company’s residual rights will be returned to Armenia without any payment or compensation from Armenia. The agreement does not prevent the construction and operation of other infrastructure in Armenia outside TRIPP.

The Development Company will be authorized to select third parties participating in the projects, including concessionaires, investors, operators, contractors, and providers of engineering, procurement, and construction services. Armenia will retain its status as the sole grantor of concessions.

Speaking about border and customs functions, Mirzoyan read out the provisions establishing Armenia’s powers.

“The Republic of Armenia retains full sovereignty and jurisdiction over its borders and customs operations, undertakes to ensure effective border management, and has the right to maintain a physical presence at all its border control points. In accordance with its domestic legislation and international agreements, the Republic of Armenia continues to be responsible for the following: security and law enforcement, border control and border security, customs and migration control, the transfer of taxes and duties to the state budget, state information systems, public administration, and oversight,” the minister said.

He again emphasized that Armenia retains full sovereignty and jurisdiction in all these areas.

Addressing the “front office–back office” model, Mirzoyan explained that, with the agreement of Armenia and the Development Company, private operators may provide certain passenger and cargo handling services.

“With the consent of Armenia and the TRIPP Development Company, in which we also have a stake, services requiring direct interaction with citizens may be provided. This arrangement does not change the responsibilities of state bodies, established under the agreement, for border and customs control,” he stressed.

The minister also addressed the involvement of private security units, emphasizing that their activities are subject to Armenian law.

“Like any company, particularly large infrastructure companies, they may have their own security units, but such units must be licensed in the Republic of Armenia, as is already the case in many private-sector instances today,” Mirzoyan said.

According to him, the primary authority to act in emergency situations and control the situation rests with the relevant Armenian authorities. Armenia will also approve infrastructure security plans, and the involvement of private security personnel must comply with Armenian licensing requirements.

The agreement also establishes certain tax exemptions. Dividends distributed by the Development Company to the American company will be exempt from taxation in Armenia, provided that the latter is ultimately owned by the U.S. government.

The Development Company will also be exempt from paying taxes in Armenia on dividends received from subsidiaries and on capital gains from the disposal of its own shares or those of its subsidiaries. Transactions involving the transfer of rights provided for under the agreement—from the Government of Armenia to the Development Company and from the latter to its subsidiaries—will also be exempt from taxation.

The two countries will appoint senior officials to coordinate cooperation. The American side intends to carry out the necessary procedures, including notification of Congress and approval by the board of directors of the International Development Finance Corporation.

The United States also intends to provide financing or support efforts to secure it, subject to the availability of funds and applicable requirements, including from public and private investors on commercial terms.

Disputes concerning the interpretation or application of the agreement will be resolved through mutual consultations. The agreement will enter into force on the date of receipt of the last notification confirming the completion of the necessary domestic procedures and may be amended by mutual written agreement of the parties.

Either party may terminate the agreement by giving written notice to the other party. Termination will take effect one year after the notice is sent.