Yerevan is unhappy with the role of Russian Railways - Pashinyan is looking for a new option

The Armenian government is determined to take away the Armenian railways from Russia. This is very noticeable by the persistence with which Nikol Pashinyan raises the issue of the South Caucasus Railway (SCR).

The topic first appeared on the agenda at the end of last year, when Nikol Pashinyan called on Russian Railways, of which SCR is a wholly owned subsidiary, to immediately begin rebuilding two sections of the railway near the borders with Turkiye and Azerbaijan. The Russian side did not refuse. Nevertheless, as early as February 2026, Nikol Pashinyan began to speak more specifically, showing exactly what Yerevan wants from Moscow. Yerevan does not expect Moscow to repair roads, but to sell the concession right to one of the countries that "have warm relations" with Armenia and Russia, as Russian Railways deprives the Armenian side of competitive advantages. With this, Pashinyan made it clear to Russian Railways that he no longer wants to see Russia as a concessionaire. It is impossible to say this directly, but one can accuse the partner of not fulfilling the terms of the concession agreement, which in the current regional realities have deprived Armenia of competitive advantages.   

It should be noted that Yerevan is in a bit of a hurry with its competitive advantages. Even in Soviet times, Armenia did not have a competitive advantage in terms of logistics due to the difficulties of the terrain. By and large, the concession management of the Armenian railways was more a political move than an economic one. The Armenian railway was never able to make a profit, so the Armenian SSR did not have its own railway management, its highways were part of the Transcaucasian Railway.

In other words, the Armenian railway has always been managed by someone, and Yerevan is not even considering the transfer of this infrastructure to national management. He has neither the experience nor the finances to do this.

Since 2008, the SCR has been the only structure authorized to manage the Armenian railways. The concession agreement is signed for 30 years and will be valid for two more years. The Armenian government does not want to wait so long, considering that it loses a lot due to the fact that it cannot turn the Zangezur corridor into a ring road, connecting the Nakhchivan section with other lines due to their technical unsuitability. In principle, the claims against the Russian side are unfair for the reason that it made no sense to spend money on roads leading to Turkiye and Azerbaijan during the conflict years. Now is the time for this, but Nikol Pashinyan no longer wants his country's railway to depend on Russia.

Terminating the agreement with Russian Railways will not be as easy as it may seem. This is a complex legal process that entails possible financial and legal consequences. For example, Armenia may be obliged to pay compensation to Russian Railways, cover losses or the purchase price of assets. Etc. Therefore, Pashinyan suggests selling assets to another country that suits both sides.

Interestingly, Kazakhstan is considered first of all. At a briefing in Yerevan, Pashinyan said that "Armenia and Russia can come to an understanding that the transfer of the republic's railways on concession terms to Kazakhstan is acceptable for both sides."

It is still unknown what the Kazakh side thinks about this. Pashinyan first announced Kazakhstan as a potential concessionaire in February. There has been no reaction yet. It cannot be until Moscow's consent is obtained. Other candidates include Qatar and the United Arab Emirates. But these options are less realistic. Kazakhstan, as one of the key countries in the Middle Corridor, could be interested in the proposal. But there is a big PROBLEM - Armenian railways are not and cannot become part of international transit due to the same technical parameters. The Zangezur Corridor (or TRIPP) will become part of the transit. But in the current situation, the implementation of this project has been postponed for the time being. In general, Armenia's railways are not profitable, the network is undeveloped and operates only within the Armenian borders.

According to Russian experts, the Armenian side could offer a concession to the Kazakh TEXOL group. This company owns the Atyrau Car Building Plant and has about 10,000 freight wagons of various types in its operational management. For comparison, the SCR has only 2 thousand of them. In addition, it is reported that the company has ambitions in the field of railway transport and logistics in the CIS. 

But so far these are just expert opinions. The Kazakh side itself does not react to Pashinyan's idea in any way.

In December last year, the Armenian prime minister, rushing Russia, said that Armenia could withdraw the sections it needed from the Russian Railways concession and restore them independently at its own expense. However, we repeat that Armenia does not have such an experience. We are talking about the sites in Ijevan, Yeraskh and Akhurik, which connect Armenia with the western regions of Azerbaijan, Nakhchivan and Turkiye. Since the beginning of the Armenian occupation, these roads have been inactive and are currently in unusable condition or have been dismantled for scrap. You can't do it with repairs alone. A thorough reconstruction is needed, taking into account modern standards, according to which roads are being built in Azerbaijan and lines in the North will be restored.

All these are not such complicated issues, but they are becoming difficult for a country that is not used to doing things on its own.