RF FM: Issue of sale of concession for Armenian railways discussing  it with Russia brought into public arena

ArmInfo. The issue of selling the concession for Armenian railways to Russia without discussing it with the Russian side was brought into the public arena, and this is  causing emotions. Russian Foreign Minister Sergey Lavrov stated this  in an interview with RBC.

"Any issues of interest to Armenians can be  discussed, including the situation with the South Caucasus Railway,  which is under concession by Russian Railways. And we are surprised  to hear how these issues-if they have already arisen-are immediately  brought into the public arena, instead of being discussed with the  partner. Statements are made: 'We'll take it away, it's ours, and  they owe us two billion.' I understand that this, in addition to  assessments based on economic analysis, evokes emotions in our  citizens. And I am no exception," the Russian minister said.

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 its historic  opportunity to integrate into the international railway network. As a  reminder, Armenian Prime Minister Nikol Pashinyan first proposed  selling the railway concession to Russia on February 13.

At that time, in a conversation with journalists, he stated that  Russia's concessionary management of Armenia's railways created  competitive problems for Armenia, and that many international  partners wanted 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 assertions as groundless and stated that  it had no intention of selling the concession to 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  twenty years of operation by mutual agreement of the parties. The  objectives of JSC "SCR" include modernizing the RA railway  infrastructure, developing cooperation with Armenia's neighboring  states, and developing domestic and international passenger and  freight service. The Company's investment totals $572 million. JSC  "SCR" commenced operations on June 1, 2008.