168: Unilateral revision of obligations on the South Caucasian railway

In case of a unilateral review of obligations regarding the South Caucasian Railway (SCR), Russia will have the right to demand compensation from Armenia. Minister of Economic Development of the Russian Federation. Maxim Reshetnikov responded to Pashinyan’s words

The main points of the statement.

• The South Caucasian Railway is not a free asset of a Russian company, but an enterprise in which more than 30 billion rubles have been invested.
• Pashinyan’s words are also an occasion to remind about the significant advantages that Armenia’s economy receives due to EAEU membership and, in particular, trade with Russia. During the EAEU membership, Armenian exports to the Union countries increased from $240 million to $3.2 billion, and more than 80% of traditional Armenian exports (food, agricultural products, and alcohol) are supplied to EAEU countries. Entering alternative markets requires long-term restructuring of production chains and involves high commercial risks.
• If we evaluate these deliveries from the point of view of the economic impact on the market from the rest of the Union, their importance cannot be called significant. Armenia’s share in Russia’s gross trade with the world does not exceed 0.9%.
• Armenia saves $120 million annually due to low Russian gas prices. In addition, if the country loses access to the EAEU market, exports to the EU countries will decrease by more than 60%.