The joint working group established with the Russian side on the management of Armenian railways has not yet completed its studies. It depends on their results whether Yerevan will continue cooperation with the Russian concessionaire or whether it will consider other management options.

This was announced by the Minister of Territorial Administration and Infrastructures in a briefing with journalists on November 9 Davit Khudatyan.

According to him, the working group continues its activities, and another meeting is planned in the near future. The minister emphasized that the discussions are still in the working stage, so he does not see the need to spread public messages about each of them. “The working group should make a proposal to the Armenian government on how it is possible to increase the railway route, how it is possible to improve the quality,” said Khudatyan.

According to his explanation, the government will make a further decision after evaluating the effectiveness and feasibility of the proposals to be presented. The working group was given a three-month term, which has not yet expired.

Touching upon the obstacles to the attraction of international investments in the railway system, the minister reaffirmed that the sanctions risks related to the Russian administration are a problem for some international financial structures.

According to Khudatyan, there are international organizations that could have invested in Armenia’s railway system in other circumstances, but currently avoid getting involved in that process, taking into account possible sanctions consequences.

The railway infrastructure of Armenia is under concession management for 30 years from 2008, until 2038, to the subsidiary of “Russian Railways”, “South Caucasian Railway” (SCR). The owner of the railway infrastructure continues to be the Republic of Armenia.

Prime Minister in recent months Nikol Pashinyan has repeatedly raised the issue of the need to change the Russian concession, arguing that the current management model and international sanctions against Russia limit the competitiveness of Armenian railways and the attraction of new investments.

On October 7, Pashinyan announced that Yerevan has legal grounds to terminate the Russian concession, but prefers to settle the issue by mutual agreement. The government also discussed the possibility of transferring the management of railways to a third country.

On October 14, Pashinyan and head of “Russian Railways”. Oleg Belozyorov after the meeting, it was decided to create an Armenian-Russian working group. Its task is to present proposals regarding increasing the efficiency of the railway system and possible options for further management within three months.

The Russian side, for its part, has announced that it intends to continue fulfilling its obligations under the current concession agreement.

Discussions about the future of railway management are taking place against the backdrop of preparations for the unblocking of regional communications and the implementation of the TRIPP project. One of the key issues for Yerevan is how to ensure the competitiveness of the railway network of Armenia in the conditions of the formation of new transit routes.