Armenia takes rail restoration into its own hands, despite Russian infrastructure concession

Armenia has begun working on the restoration of railways to neighbouring Türkiye and Azerbaijan. For years, the countries had closed their borders due to hostile relations. That is now changing. One challenge remains: Russian Railways manages Armenia’s infrastructure, and may not be keen to help Armenia diversify its trade routes.
Armenia has an economic opportunity of a lifetime. It could double its possible trade directions from just north and south (Georgia and Iran) by adding east and west (Azerbaijan and Türkiye). To do this, the infrastructure needs to be in place. Armenia now wants to reinstate old rail routes.

The government in the capital city Yerevan has moved to independently restore these railways. “We have already begun processes aimed at restoring sections of the Gyumri–Akhurik railway [to Türkiye] and near Ereskhe [to Azerbaijan], and we are implementing these works”, said Prime Minister Nikol Pashinyan.

Independently here is the key word, because officially, Russian Railways (RZD) is in charge of Armenia’s rail network. RZD secured a concession for its subsidiary, South Caucasus Railway, to manage the Armenian infrastructure for 30 years, starting in 2008.

Rail freight in Armenia
Rail freight in Armenia. Image: Shutterstock. © Vahan Abrahamyan

Armenia and Russia clash over interests

Russia, however, may not be enthusiastic about helping Armenia economically. The two countries have been on a collision course after Yerevan’s distancing from Moscow in favour of a more pro-European path.

In December 2025, Armenia requested that RZD restore the railways in question, but has now started working on it independently instead. Pashinyan did not explicitly rule out removing certain railways from the South Caucasus Railway concession, according to Russian publication TASS.

“These are our railways, our property, and we must manage our property”, the Prime Minister commented. “I can’t provide details, because these issues must be resolved through legal consultations and working discussions. I can say that South Caucasus Railway is involved in all these processes, and they are aware of what’s going on”, Pashinyan said.

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