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Akbar Novruz

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Prime Minister Nikol Pashinyan has said Armenia is seeking a compromise with Russia over the management of the country's railway network, suggesting that Russian Railways (RZhD) could retain a partial stake rather than having its concession cancelled outright, AzerNEWS reports.

The proposal marks a shift from Pashinyan's earlier calls for an end to Russian control of Armenia's railway system.

Armenia's railway network is operated by RZhD under a 30-year concession agreement signed in 2008. Pashinyan first called for ending the Russian company's involvement in February, arguing that its control was discouraging international investment.

In July, he went further, threatening to seek international arbitration and demanding as much as $2 billion annually from RZhD for its management rights. The remarks prompted warnings from Moscow.

Speaking to reporters on Thursday, Pashinyan said Armenia was now considering a compromise under which Russia could sell part of its concession rights while remaining a shareholder in the railway system.

He acknowledged that such an arrangement would not provide an immediate solution, but argued that reducing Russian control could eventually allow Armenia's railway network to become integrated into the wider international railway system.

"I suggested this as one of the possible development scenarios without having anything specific in mind," Pashinyan said.

The issue has already triggered a dispute over RZhD's investments in Armenia. RZhD Chairman Oleg Belozerov previously said Yerevan would need to compensate the company for approximately $400 million invested since 2009, while Russian Economic Development Minister Maxim Reshetnikov described Armenia's demand for additional payments as "groundless".

Pashinyan's latest remarks come amid a broader reassessment of Armenia's economic and security ties with Russia.

The prime minister linked the railway dispute to Armenia's relations with the Eurasian Economic Union (EAEU) and the Collective Security Treaty Organisation (CSTO), both Russia-led blocs.

The EAEU has recently called on Armenia to hold a referendum on whether it wants to remain in the bloc or pursue membership of the European Union. Meanwhile, the CSTO has indicated that the question of Armenia's voting rights could be discussed at its November session.

"There is an expectation, which Armenia has not agreed to, that it should maintain an exclusive relationship [with the bloc]," Pashinyan said.

He argued that Armenia cannot afford to have its import and export routes concentrated in a single direction and must instead develop alternative markets and transport links.

Pashinyan also addressed recent comments by Azerbaijani President Ilham Aliyev regarding cooperation between Azerbaijan and Armenia in the energy sector.

Aliyev recently said Azerbaijani specialists had conducted preliminary surveys in Armenia and identified possible locations for electricity transmission pylons. He also suggested that Azerbaijan could supply electricity to Armenia.

"I hope the Armenian side will not delay a decision on this matter. After all, they themselves may need it most of all, given that their primary energy source today is a nuclear power plant — one that is not under their own control," Aliyev said.

Pashinyan confirmed that Azerbaijani specialists had visited Armenian power facilities on two occasions, saying that both visits had been announced in advance.

He also noted that Armenia's energy requirements could change as the country develops new industries, including energy-intensive artificial intelligence facilities.

According to Pashinyan, Armenia previously had an electricity surplus, but growing demand could alter the country's energy balance.

"Overall, however, our strategy is to achieve 100% energy independence," he said.