Armenian authorities` desire to replace Russia in management of  country`s railways haste - Sergei Shoigu

ArmInfo. The Armenian authorities' desire to replace Russia in the management of the republic's railways is a poorly thought-out decision; the established  system could "break down overnight" after such a move, Russian Security Council Secretary Sergei Shoigu told TASS.

"I won't judge the competence of other countries in railway  management, but I can confidently say that it's unlikely that any  other company will be able to fully replace the Russian railway  carrier, which has been operating effectively and for a long time in  Armenia under far from the most challenging conditions," Shoigu noted  in a conversation with TASS.

"I recently commented on the situation related to Armenia's plans for  cooperation with the United States on nuclear issues. So, won't such,  to put it diplomatically, poorly thought-out decisions lead to  similarly dangerous experiments for which ordinary Armenian citizens  will have to pay?" the Russian Security Council Secretary wondered.  According to him, the system built over nearly two decades could  simply collapse overnight. "Naturally, no 'friendly countries' will  bear responsibility for this. I hope that when making important  decisions, the Armenian leadership will proceed solely from the  interests of its citizens," he continued.

The Secretary of the Russian Security Council noted that for nearly  20 years, South Caucasus Railway (SCR) has responsibly fulfilled the  terms of the concession agreement, including those related to  investment. According to him, during this time, Russian investments  in the Armenian railway system, including rolling stock, are  estimated at more than 30 billion rubles. "And now Nikol Pashinyan  says that the concession of Armenian railways to a Russian company  scares off potential partners, hindering regional projects, and is  considering transferring management of the Armenian railway network  to a country friendly to both Russia and Armenia," Shoigu noted.

He recalled that the agreement provides for South Caucasus Railways  CJSC, as the concessionaire, to own, use, manage, operate, maintain,  repair, and make necessary improvements to the concession assets.  "For reference, when signing the agreement, the Russian side assumed  responsibility for more than 1,200 concession real estate assets and  more than 12,500 movable property items in the Armenian railway  system," the Secretary of the Security Council of the Russian  Federation stated.

As Shoigu noted, over the past 20 years, thanks to the concession  agreement, more than 15 billion rubles have been paid to the Armenian  budget in taxes, and more than 520 km of track has been repaired,  while the operational length of the network managed by South Caucasus  Railways CJSC is approximately 700 km. "Fifty percent of the sleepers  have been replaced, and more than 50 structures, including 38 bridges  and two tunnels, have been repaired and reconstructed. Looking at the  statistics for two years, the picture is as follows: on average, SCR  transports over 500,000 passengers annually (approximately 360,000 of  which are local) and over 1.6 million tons of freight," he added.

"The company's contribution to the republic's economy is difficult to  overestimate: all critical freight for Armenia's needs is transported  by SCR," Shoigu emphasized. "The railway also plays a strategic role,  providing transportation links for a landlocked country. Behind all  this are the people, the company's employees. Currently, the company,  as an employer, guarantees employment for over 2,500 people.   Incidentally, almost all of them are residents and citizens of  Armenia, receiving all necessary social benefits."

Shoigu noted that when considering the agreement, it's worth  recalling the history of the subject of discussion and some legal  issues directly related to the concession.

"After the collapse of the USSR, the Armenian railway system was in  dire straits. The infrastructure was severely deteriorated, and many  sections of the track were inoperable due to avalanches and  landslides.  Given that the republic was practically under siege,  freight traffic and passenger numbers declined significantly.  Significant financial investments were required for modernization,  including the renewal of aging rolling stock. Under these  circumstances, the Armenian government announced a tender for the  restoration of the railway, which was won by Russia," he said. "In  February 2008, a concession agreement was signed between the Republic  of Armenia, Russian Railways OJSC, and South Caucasus Railways CJSC  (a specially created subsidiary of Russian Railways OJSC) to transfer  Armenia's railway system to South Caucasus Railways CJSC as a  concession until 2038," Shoigu stated.

On February 13, Armenian Prime Minister Nikol Pashinyan, speaking to  journalists, proposed that Russia sell its concession for the  republic's railways to a state friendly to both Moscow and Yerevan.  Among the options, he named Kazakhstan, the UAE, and Qatar. Pashinyan  asserted that Armenia has no objections to Russia, but that the  Russian concession would create "certain competitive losses" for the  republic.