TODAY.AZ / Business

Russia ready to control railways of Armenia

30 October 2006 [13:52] - TODAY.AZ
The talks of Russia's President Vladimir Putin and his Armenia's counterpart Robert Kocharian begin in Moscow today, October 30, 2006.

The key issue of agenda is the last lucrative asset of Armenian infrastructure – its railway facilities.

Moscow that just half a year ago, persuaded Armenia to buy Russia's gas at $110/ths cu meters instead of $54/ths cu meters and insisted on transferring to Gazprom a portion of Iran-Armenia's gas pipeline and Razdan Thermal Station is eyeing Armenian railway system now.

Three weeks ago, Armenia announced the intention to grant on concession its railways and is currently preparing a tender, which successful bidder will control the railways in the following 40 years. But Moscow has been long craving for reviving the through railway service via Sukhumi to Erevan, the capital of Armenia. In future, it may turn into a key component of North-South transport corridor, where Iran will participate.

The interest is so high that Moscow will probably urge Kocharian to suggest the name of the winner to arrangers or to transfer the facilities to Russian Railways (RZD) with no tender at all.

Georgia could become another delicate issue to be raised at the talks. In the Kremlin, they are continuously looking for the methods to pressurize Mikhail Saakashvili. Georgia fears one of the options could be halting electric energy deliveries from Russia and Armenia in winter.

Another concern of Georgia is its Samtshe-Dzhavakhetia region, which is the whereabouts for around 200,000 ethnic Armenians. There, the atmosphere is rather heated as many locals used to work at the Akhalkalaki base, of which Russia's military are pulling out today. So, Moscow may prompt Armenia to stage some turmoil there. Kommersant

URL: http://www.today.az/news/business/31937.html

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