Armenia will increase the subsidy amount for the South Caucasus Railway company by 65 million 222 thousand drams, which will go toward covering losses from passenger transportation. The corresponding decision was adopted at a meeting of the Armenian Government on July 16.

In 2026, the amount of subsidy payments based on the results of 2025 totaled 312 million 211 thousand drams, while 246 million 989 thousand drams had been allocated in Armenia’s 2026 state budget, as a result of which accounts payable in the amount of 65 million 222 thousand drams were formed. 

The increase in the subsidy does not entail additional state budget expenditures, since the subsidy is paid to SCR in an amount equivalent to the concession payment transferred to the state budget.

The concession payment amount for 2025 totaled 312 million 211 thousand drams, which was paid by the company on June 4 of the current year. The decision provides for an increase in the subsidy amount by 65 million 222 thousand drams through reallocation.

The concession agreement provides for partial compensation by the state for losses incurred by the company from passenger transportation.