RTVI: Russia intends early termination of contract on concession management of Armenian railway

A source familiarized with the process of negotiations between Armenia and Russia told Russian RTVI that Russian Railways state corporation is planning to breach the contract signed in 2008 with Armenia on concession management of Armenian railway.

The information was confirmed at Russian ministry of transport.

In August 2018 law enforcers searched the office of the company suspecting it in tax evasion totaling to 19,000 USD. That time Armenia’s Prime Minister Nikol Pashinyan said “some legal processes are taking place over the company” but urged not to “make tragedy of it.”

RTVI source said overall 7 cases have been instituted against the company combined in one case.

The leadership of the South Caucasian Railway company considers the financial demands ungrounded.

The source said if it was not an attempt to put pressures on Russia in this way Armenia would have applied to international court to understand the existed situation.

“The contract envisages for instance applying to Paris arbitrary for the solution of disputable issues, but instead the Armenian side prefers to exert pressure by instituting a criminal case,” the source said.

The negotiations held between Armenia and Russia on the level of Russia’s transport ministry and Armenia’s deputy PM Mher Grigoryan did not give any results either.

The source said Moscow proposed closing the criminal case and instead promised conduction of new independent audit and additional investments.

Currently Moscow is discussing withdrawal from the contract, the source claims.

The media reported that the information has been confirmed at the Russian transport ministry.

“Armenia has created a situation where the South Caucasian company cannot work normally. All the documents of 10 years were seized, ungrounded accusations were forwarded. We argue that the previous audit did not reveal any violations and the arguments that we have implemented all the concession conditions are being ignored,” Russia’s deputy transport minister Vladimir Tokarev told RTVI.

He also confirmed that the Russian side is seriously studying the opportunity of early termination of the contract.