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Russia to start ‘substantive negotiations’ with Armenia to restore railway sections

Russian Deputy Prime Minister Aleksei Overchuk. Photo: TASS.
Russian Deputy Prime Minister Aleksei Overchuk. Photo: TASS.

Russian Deputy Prime Minister Aleksei Overchuk has stated that Russia has ‘decided to begin substantive negotiations’ with Armenia on the restoration of two sections of the country’s railway network, following a request from Armenia. Overchuk further said that efforts are ongoing to reopen all disrupted transport routes across the Caucasus, including restoring rail service between Russia and Georgia through Abkhazia.

In December, Armenian Prime Minister Nikol Pashinyan revealed that he had asked Russia, which manages Armenia’s railways, to ‘urgently address’ the full restoration of railway sections adjacent to the Azerbaijani exclave of Nakhchivan and the Turkish border.

In 2008, a 30-year concession agreement was signed stipulating the transfer of the Armenian railway system to the ‘South-Caucasian Railway’ CJSC, created by Russian Railways.

Pashinyan tells Putin Armenia could retake control of railways if restoration works are delayed
The comments were omitted from the official Russian readout of the bilateral meeting.

Russia swiftly announced its decision to proceed with the request just days after Pashinyan suggested in an interview with Public TV earlier in February that Armenia could seek to regain control over its railways from Russia in order to safeguard its competitive advantages and develop an international transit route through the country.

‘Here we see that in the international context, the fact that this section of the railway is under the management of Russia is being used to present the Kars–Dilucu route as more favourable. This is a problem for us, because it turns out that we are losing our competitive advantages in a situation where we have a ready railway’, Pashinyan said.

Pashinyan signals Armenia may try taking back control of railways from Russia
Since a 2008 concession agreement, Armenia’s railway network has been managed by Russian Railways.

On Thursday, Overchuk said that, aside from Armenia’s request, Russia’s decision to move forward with the restoration was ‘based on friendly and fraternal feelings for the people of Armenia’. According to him, the railway segments to be restored are approximately 1.6 kilometres and 12.4 kilometres in length.

Russia counts on ‘constructive cooperation’ from the Caucasus

While presenting the move as a response to Armenia’s request, Overchuk also underscored the benefits it stands to gain from the restoration of railway sections across the Caucasus. The decision comes amidst mounting financial difficulties facing Russian Railways.

Restoring the railway in Armenia, according to Overchuk, would provide Russia with ‘direct rail links’ to Nakhchivan and Turkey, ‘with access to Mediterranean ports’, as well as to Iran, ‘with access to ports in the Persian Gulf and the Indian Ocean’.

Overchuk also highlighted that efforts are ongoing to reopen all disrupted transport routes across the Caucasus, including restoring rail service between Russia and Georgia through Abkhazia.

‘Strengthening transport and logistics connectivity in the Caucasus is critically important for peace, stability, and the economic prosperity of the peoples of Azerbaijan, Armenia, Georgia, Iran, Turkey, and Russia’, Overchuk said.

He added that the Russian side ‘count[s] on the constructive cooperation of all states in the region in addressing this important common task’.

However, the ruling Georgian Dream party quickly poured cold water on the idea, with Parliamentary Speaker Shalva Papuashvili saying on Friday that Georgia had no communication with Russia on railway routes.

Georgian Railway also responded to Overchuk’s remarks, stating that it does not hold any discussions about resuming rail traffic between Georgia and Russia.

‘Accordingly, it’s completely unclear to us why this issue has come up on the agenda’, it added, as quoted by IPN.

In January, RFE/RL reported that the Russian Railways was ‘in deep financial trouble’, citing a range of domestic and external challenges.

‘The all-out war on Ukraine is a major cause, with cargo volumes and revenues dropping as the military sucks up traffic and schedules to ship men and material to the front. The company is also staggering under a massive debt load estimated at around $51 billion and exacerbated by high interest rates pushed by the Central Bank as it struggles to rein in inflation’, RFE/RL reported.

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