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If Armenia decides to cancel the contract, Russian Railways will demand the return of its investments

30 July 2026 21:31 (UTC +04:00)

Russian side is fully fulfilling its obligations under the 2008 concession agreement: no dividends were paid to shareholders, all profits were directed to the development of the railway, and the total investment by Russian Railways and South Caucasus Railways from 2008 to 2025 amounted to about $396.3 million, Oleg Belozerov, the head of Russian Railways told TASS, APA reports.

According to him, the concession allowed Armenia to acquire a modern railway without burdening the budget. South Caucasus Railways remains one of the largest employers in the country and regularly indexes the salaries of its 2,500 employees. Belozerov noted the renewal of the passenger fleet, the delivery of 27 new wagons in 2021, and the joint elimination of the consequences of the Debed River flooding in 2024.

Belozerov emphasized that all rights and obligations of the parties are enshrined in the agreement. If Armenia decides to terminate the contract or change its terms, Russian Railways has the right to expect a return on its investments.