Armenia Forms Working Group to Re-evaluate Railway Concession Amid Sanctions and Regional Shifts
Armenia has established a joint inter-agency working group with a three-month mandate to evaluate the efficiency of its 30-year railway concession agreement with Russian Railways (RZD). This decision follows growing friction and financial strain, exacerbated by U.S. and EU sanctions against RZD after the Russia-Ukraine war. The concession, which began in 2008, grants RZD's subsidiary, South Caucasus Railway (SCR), operational management of Armenia's national rail network. Armenian officials have expressed concerns that relying on a sanctioned operator hinders international financing and integration into Western-backed logistics corridors. Prime Minister Nikol Pashinyan previously raised the possibility of seeking up to $2 billion in retroactive lease payments or international arbitration, while Russian officials warned of counterclaims for $396.3 million in documented capital investments if the contract is terminated. The working group, chaired by Armenia’s Deputy Minister of Territorial Administration and...
