Russia wants to increase Armenia’s transit capability

The Minister of Transport of Russia does not exclude that different Russian companies or daughter companies will participate in the construction of railways connecting Armenia with Iran. Different level negotiations on this have been underway already for more than a year.

The major issue for the Russian side is the attraction of capital. Due to the difficult terrain the construction of the railway will be very expensive, costing maybe as much as USD 1.5 billion. Most probably Armenia’s Government and maybe Iran’s Government as well will be involved as customers.

Head of the Department of International Relations of Russian Railways Aleksey Averin confirms that Russian Railways is interested in the successful implementation of this project, which will give its daughter company Southern Caucasus Railways, the former Armenian Railways, more chance to develop. So far this railway has a connection only with Georgia, and a connection with Iran will broaden its earnings potential.

It should also be mentioned that if the Armenian-Turkish border is opened it will be possible for Armenia to connect with Iran via Turkey. The Baku-Tbilisi-Akhalkalaki-Karsi railway, which bypasses Armenia, is still being built, but more slowly than before. The railway situation in the South Caucasus is becoming more and more intriguing.