Russian Railways declared its right to a refund of its investments if the concession agreement with Armenia is amended.

The head of the holding, Oleg Belozerov, reported that Russian Railways was surprised and perplexed by media reports about the possible introduction of a fee for the lease of Armenia's railway infrastructure. He recalled that all rights and obligations of the parties are spelled out in the Concession Agreement, to which the Armenian government is also a party.

As "Caucasian Knot" wrote, Armenian Prime Minister Nikol Pashinyan allowed for the possibility of going to court regarding the operation of South Caucasus Railways CJSC, which is under concession from Russian Railways, and stated that Armenia could demand an annual fee from Russia.

Russian Railways CEO Oleg Belozerov stated that Russian Railways intends to adhere to the terms of the railway concession with Armenia, but has the right to expect a return on investment if the terms are changed or terminated at the initiative of the Armenian side, TASS reports.

"All rights and obligations of the parties are spelled out in the concession agreement, to which the Armenian government is also a party. We intend to strictly adhere to it, and if the Armenian side considers terminating it or changing its terms, we have the right to expect a return on investment," Belozerov stated.

Belozerov emphasized that Russian Railways is consistently and fully fulfilling its obligations under the concession in Armenia. "It should be noted that the Russian side, represented by South Caucasus Railway CJSC and its sole shareholder, Russian Railways OJSC, has consistently and fully fulfilled its obligations under the 2008 Concession Agreement," he said.

Belozerov noted that the concession gave Armenia a modern railway, freeing the republic's budget from the costs of its restoration and maintenance. Furthermore, all profits went toward railway development, and dividends were never paid to the shareholder.

The head of the holding emphasized that the mitigation of the consequences of the Debed River flooding on the railways in Armenia in 2024 was financed from the Russian Federation's Reserve Fund. "Through the joint efforts of South Caucasus Railways and Russian Railways, the consequences of the devastating flooding of the Debed River were eliminated, and rail traffic reopened 17 days later. The costs of the work, as decided by the Russian government, were financed from the Reserve Fund," he said.

Furthermore, in 2021, 27 new Transmashholding railcars were delivered to Armenia, and four new electric trains were purchased over the past few years.

Belozerov noted that South Caucasus Railways is one of the most significant and largest national employers. "The salaries of two and a half thousand employees are regularly indexed, with the next increase scheduled for April 1, 2026," he added.

In April, Russian Deputy Prime Minister Alexei Overchuk stated that there were no objective reasons for selling the South Caucasus Railway concession to a third party.

"However, assessing the facts, we understand that if the Armenian leadership raises the issue of the undesirability of a Russian business presence, then the question of reciprocity also arises. We believe the Armenian business community should be aware of this," the Deputy Prime Minister stated at the time.