Armenia May Seek Billions From Russia Over Railway Concession

Armenian Prime Minister Nikol Pashinyan said Armenia could seek financial compensation from Russia over the operation of South Caucasus Railway CJSC, which Russian Railways (RZD) has managed under a concession agreement since 2008.

In February, Pashinyan suggested that Russia consider transferring the concession rights for Armenia’s railway network to a friendly third country, naming Kazakhstan, Qatar, and the United Arab Emirates as possible candidates. In April, he clarified that Yerevan would not discuss issues related to the railway behind Moscow’s back.

Pashinyan has now said Armenia could take the dispute to international arbitration. He stressed that the country’s railway infrastructure belongs to the Armenian state and that the government has the right to decide how it should be managed. He also noted that Yerevan had refrained from making financial demands on Moscow for many years.

“There may be issues for which we have asked for nothing over the past 30 years, but now we may seek as much as $2 billion a year,” Pashinyan said.

He added that the Armenian government hopes to resolve the matter through friendly negotiations.

Russian Lawmaker Urges Pashinyan to Focus on Armenia’s Economy

Andrey Krasov, First Deputy Chairman of the Russian State Duma Committee on Defense, urged the Armenian prime minister to focus on his country’s economy instead of making multi-billion-dollar claims.

“He should think about where Armenia will sell its vegetables, fruit, and fish, because Russia has no need for low-quality products. Pashinyan’s statements about multi-billion-dollar lawsuits only damage bilateral relations that took years to build,” Krasov said.

The lawmaker argued that Russian support has played a major role in preserving Armenia’s sovereignty and infrastructure. He also warned that any deterioration in relations with Moscow could seriously affect Armenia’s agricultural sector, which relies heavily on exports.