ArmInfo. Oleg Belozerov, CEO of Russian Railways, arrived in Armenia at the invitation of RA Prime Minister Nikol Pashinyan. The head of government announced this during a briefing with journalists on October 15.
He shared certain details of the negotiations, stating that he had stated that Armenia sees no problem with the Russian concession. "Our goal is to make our railway competitive. And yesterday I reiterated that our analysis shows that a rational format for solving this problem is changing the concession management format, that is, transferring it to third countries,"
- Pashinyan shared.
He also noted that Armenia is ready to consider the Russian side's proposal if they know how to resolve this issue. In this regard, the Prime Minister proposed that the head of Russian Railways form a group that would, within three months, provide answers to questions about how Armenia's railways could become competitive, especially given the ongoing parallel processes. "They say sanctions aren't a hindrance. We believe this is a problem and want to find a friendly solution," the head of government noted.
He also said that during the meeting, he raised the issue of restoring the Yerevan-Razdan railway service, which is of strategic importance; establishing a wheelbase replacement facility in Akhurik; and connecting the Ijevan-Razdan line with the Vanadzor-Gyumri line. "In other words, these are all challenges, and we intend to pursue them. We understand that these are very complex issues, both in terms of investment, technology, and organizational and managerial aspects." "But we can't say, 'Okay, if it's difficult, let's not resolve these issues.' We must resolve all these issues, and of course, we will be as friendly as possible in our relations with our friends," he noted. As a reminder, 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 third, friendly party. He also announced an offer to purchase the concession for $400 million. Pashinyan emphasized that if Russia were to manage 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 for Russia to sell the railway concession on February 13. Then, 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 called Pashinyan's claims groundless and stated that it does not intend to sell the concession for Armenian railways.
As a reminder, SCR 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 rail transport system to the management of SCR CJSC.
According to the agreement, the concession management term is 30 years, with the right to extend it for another 10 years after the first twenty years of operation by mutual agreement of the parties. The responsibilities of SCR CJSC: The project includes modernizing the RA railway infrastructure, developing cooperation with neighboring countries, and developing domestic and international passenger and freight service.
The Company's investment totals $572 million. South Caucasus Railway CJSC commenced operations on June 1, 2008.
