Pashinyan urges Russia to transfer Armenian railway concession to third country

Prime Minister Nikol Pashinyan has once again called on Russia to be “flexible” and sell its concession rights to manage Armenia’s railway network to another country.

Speaking in parliament during debates on the government’s five-year plan, Pashinyan stressed that under the current Russian concession management of Armenia’s railway network, Armenia could lose the historic opportunity to integrate into the international railway network.

Pashinyan explained that international investors, freight carriers, sellers and buyers of goods want to avoid Armenia’s Yeraskh-Akhurik railway because the section is under the management of Russian Railways.

“The complex relations between Russia and the West and the sanctions imposed on Russia force international investors, freight carriers and trade participants to avoid it, consider it a risk and not take the risk of working with infrastructure subject to direct or indirect sanctions restrictions or carrying such a risk,” Pashinyan explained.

He said it is clear that Armenia has no involvement in or influence over the sanctions imposed on Russia, and it is also clear that Armenia has no problem with the fact that its railway is under the management of Russian Railways.

“This has not been a problem for us, and we have never addressed this issue. Moreover, I want to repeat that the railway is owned by Armenia and is merely under the management of Russian Railways, and we have no problem with this fact. We have the utmost respect for the Russian Federation and its interests, but because Armenia’s railway is under Russian management, we now face the risk of losing this historic opportunity to integrate Armenia into the international railway network. We cannot afford to lose this historic opportunity. This is why we ask our partners in the Russian Federation to show flexibility and sell the concession rights to a third country acceptable to both Armenia and Russia.

“Moreover, I draw everyone’s attention to the fact that in these circumstances, the construction of the Kars-Nakhchivan railway in Türkiye has become more active. It is clear that we cannot prevent or hinder the construction of this railway, and we must face the fact that the Yeraskh-Akhurik railway must compete with it. For this reason, we must bring Yeraskh-Akhurik into a competitive state as quickly as possible and subsequently ensure a high quality of railway services and competitive prices,” the prime minister said.

According to Pashinyan, awareness of the importance of all this has led to the following wording being included in the government’s program, in its fourth section: “The accredited management system of the railway will be revised so that it does not hinder the realization of the historic opportunity that has emerged to integrate the Republic of Armenia into the international transport system. We will continue working in this direction, and I once again ask our partners in Russia to reach an amicable solution to this issue as soon as possible.”

Speaking about the TRIPP project, Pashinyan explained that it will include not only railways but also pipelines, roads, cables and power transmission lines.

“There is a high probability that power transmission lines will be the first infrastructure launched as part of TRIPP, because, first, technically it is relatively easy to complete this quickly, and, second, growing global demand for electricity is forcing greater attention to projects for exporting electricity from the region.

“Currently, the framework agreement on strategic cooperation between Armenia and the United States regarding the TRIPP project is at the ratification stage. Work to establish TRIPP Development Company is in its final stage. Let me remind you that Armenia will have a 26% stake in the company, while the United States will have a 74% stake. This formula will apply for at least 49 years, and after that period, if extended by mutual agreement of the parties, for another 50 years. In that case, Armenia’s share will become 49%, while the United States’ share will become 51%, without any additional financial or other investment by Armenia.

“The project will be implemented within the framework of the territorial integrity, sovereignty and jurisdiction of the Republic of Armenia. And I specifically want to emphasize that TRIPP does not entail any foreign military and/or armed presence.

“Before this project, we had never had a 100-year project or prospect before us. This is a very important circumstance. We have never had a program or project that opened up a 100-year prospect for us, especially with the world’s number-one superpower. And this is a historic opportunity for both Armenia and the region. The implementation of the TRIPP project will change the situation and atmosphere in our region,” Pashinyan said.