YEREVAN, July 30 (WorldSignal) – Armenian Prime Minister Nikol Pashinyan said on Thursday that Yerevan could submit a dispute over the management of the South Caucasus Railway to international arbitration if no agreement is reached with Moscow, the latest move in a broader effort to reduce Russia’s strategic grip on the country’s critical infrastructure.
The concession to operate the railway has been held for years by a subsidiary of state-owned Russian Railways (RZD). Pashinyan, speaking to media, underscored that the railway remains the property of the Republic of Armenia and that the government must be free to use it as it sees fit.
“If we do not reach a mutually acceptable settlement, we may be compelled to refer the matter to international arbitration,” Pashinyan said, according to local reports. He added that Yerevan still hopes to resolve the issue amicably but insists on a definitive outcome.
Financial Terms Under Review
Pashinyan also raised the possibility of revising the financial terms under which the railway has been used. Noting that Russia has effectively operated the line free of charge for three decades, he said Armenia could begin charging up to $2 billion per year. No formal demand has been made, and the figure was presented as a hypothetical recalibration of what the government sees as a lopsided arrangement.
The comments come at a time when relations between Yerevan and Moscow are deeply strained. Since the 2020 Nagorno-Karabakh war and the subsequent shifts in the region’s security architecture, the Armenian government under Pashinyan has consistently moved to curb Russian influence across strategic sectors — from energy to transport — and has deepened ties with the European Union and other Western partners.
Sovereignty Over Transport Corridors
Pashinyan has previously argued that Russian management of the Armenian railway cost the country a competitive advantage when regional transport corridors began reopening. For landlocked Armenia, full control over rail infrastructure is seen as a pillar of economic independence and a prerequisite for integrating into emerging East–West trade routes.
The South Caucasus Railway links Armenia to Georgia and, via Georgia, to the Black Sea, making it a vital artery. Pashinyan’s warning about arbitration signals that the government is prepared to escalate the legal dispute if Moscow does not agree to new terms that reflect what Yerevan views as its sovereign rights.
Armenia’s emphasis on taking the matter to international arbitration, rather than relying solely on bilateral talks, underscores the breakdown of trust that once characterized the two countries’ military and economic alliance. For years, Russian entities held dominant positions in Armenian telecommunications, energy distribution and railways — many of which are now being renegotiated or unwound.
The Kremlin has not yet publicly reacted to Pashinyan’s latest remarks. The railway concession is governed by a long-term agreement, and any unilateral move or arbitration filing would test the legal and diplomatic fallout between the two nominal allies.
