Moscow: Western countries are blackmailing Armenia`s leadership over  SCR concession issue

ArmInfo. Western countries are blackmailing Armenia's leadership over the concession of the  South Caucasus Railway (SCR), demanding that it eliminate the  "Russian factor" in exchange for alleged multi-million dollar  investments. This was stated by the Russian Foreign Ministry.

The ministry recalled that this issue was recently discussed on the  sidelines of the meeting of the Eurasian Intergovernmental Council in  Cholpon-Ata, held on August 6-7, where Russian Deputy Prime Minister  Alexei Overchuk commented at length. "Russian Minister of Economic  Development Maxim Reshetnikov also spoke on the topic of Russia's  management of the Armenian railway network," the Russian Foreign  Ministry told TASS.

"Considering that the issue of transferring the concession to anyone  has not been raised previously, it is highly likely that the Armenian  leadership is simply being blackmailed.

They are demanding the elimination of the 'Russian factor' in the  transport sector, and in exchange, they are promising  multi-million-dollar investments and participation in projects whose  economic viability is hardly discernible. This is entirely consistent  with the dishonest games of Western capitals aimed at ousting Russia  from the South Caucasus region," the Russian diplomatic ministry  noted in response to a question about whether Yerevan had contacted  Moscow through diplomatic channels regarding the SCR concession.

The Russian Foreign Ministry noted that SCR CJSC "is fulfilling its  obligations with the utmost responsibility and has made significant  investments-over 30 billion rubles, including in rolling stock  renewal." "It's significant that their schedule was adjusted at the  request of the Armenian side. It was precisely the expertise of  Russian railway workers that helped Armenia maintain its competitive  advantages, which today, in principle, allows us to discuss  unblocking communications in the region," the ministry clarified.

In this regard, the ministry noted the complete inconsistency with  the reality of Yerevan's arguments that "the Russian concession,  allegedly, prevents Armenia from participating in logistics  initiatives." "All clarifications on this matter have been provided  at various levels. However, the Armenian side is finding it difficult  to provide counterarguments," the Russian Foreign Ministry noted.

"In general, before making public statements, partners usually sit  down and discuss existing problems and concerns in a businesslike  manner. This is especially true if, as Yerevan claims, there is a  desire to find a friendly solution," the Russian Foreign Ministry  concluded.

On August 24, Armenian Prime Minister Nikol Pashinyan, speaking from  the parliamentary rostrum, called on Russia to show flexibility and  sell the concession for Armenian railways to a friendly third party.  He also announced an offer to purchase the concession for $400  million. Pashinyan emphasized that if Russia manages the Armenian  railway network under a concession, Armenia could lose a historic  opportunity to integrate into the international railway network.

As a reminder, Armenian Prime Minister Nikol Pashinyan first voiced  the proposal to sell the railway concession to Russia on February 13.

At the time, in a conversation with journalists, he stated that  Russia's concessionary management of Armenia's railways creates  competitive problems for Armenia, and many international partners  want to bypass Armenian territory when implementing infrastructure  projects. In this vein, he suggested that Russia consider selling the  concession to a third, friendly country. He suggested Kazakhstan, the  UAE, or Qatar as examples.

Russia dismissed Pashinyan's claims as groundless and stated that it  does not intend to sell the concession for Armenian railways.

As a reminder, South Caucasus Railways CJSC is a wholly owned  subsidiary of Russian Railways OJSC.  On February 13, 2008, a  concession agreement was signed in Yerevan between Russian Railways  OJSC and the Republic of Armenia transferring the Republic's railway  system to the management of South Caucasus Railways CJSC. According  to the agreement, the concession management term is 30 years, with  the right to extend it for an additional 10 years after the first 20  years of operation by mutual agreement of the parties. South Caucasus  Railways (SCR) is tasked with modernizing the Republic of Armenia's  railway infrastructure, developing cooperation with neighboring  countries, and developing domestic and international passenger and  freight service. The Company's investment totals $572 million. SCR  commenced operations on June 1, 2008.