Shock Statements from Russia's Security Council Regarding Armenia: Yerevan's Claims are Odd

The Deputy Secretary of the Security Council of the Russian Federation, Alexey Shevtsov, addressed potential complaints from Yerevan regarding the management of the South Caucasus Railway (KGE) company in a conversation with journalists. The Russian official expressed confusion over the opinions suggesting that the current concession management leads to competitive losses for Armenia, deeming the idea of transferring management rights to third countries unacceptable.

According to Shevtsov, the existing contract is structured with favorable terms for Armenia, and the potential resale of management rights comes with enormous financial obligations. Preliminary calculations from the Russian side indicate that a new investor would be required to pay about $250 million for the rights and compensations. Additionally, the annual operating costs are estimated at around $40 million.

The representative of the Security Council of Russia also detailed the required scale of infrastructure investments. Specifically, the restoration of the Ijevan section may require $400 million, the Vanadzor-Fioletovo section $200 million, and the reactivation of border lines with Turkey and Nakhchivan another $40 million. Shevtsov emphasized that the prospects for growth in freight transportation are uncertain, and such figures could significantly diminish if Armenia were to exit the EAEU.

Concluding his remarks, the Russian official noted that breaking economic ties could lead to serious socio-economic consequences that might exceed current forecasts. He urged that all risks be considered before making decisions regarding strategically significant infrastructures.