The Armenian government’s plan to replace Russia in managing the republic’s railways is a poorly considered decision, as the established system could "collapse overnight," Russian Security Council Secretary Sergey Shoigu told TASS, the latter reports.

“I will not judge the competence of railway management in other countries, but I can say with confidence that it is unlikely that any other company will be able to fully replace the Russian railway carrier, which has been operating effectively in Armenia for a long time, in the most difficult conditions,” Shoigu noted.

"I recently commented on Armenia’s plans to cooperate with the US on nuclear issues. The question is, wouldn’t such ill-conceived decisions lead to dangerous experiments that ordinary Armenian citizens would have to pay for?" the Russian Security Council secretary asked.

"A system built up over almost two decades could simply collapse overnight. Naturally, no ‘friendly countries’ will take responsibility for this. I hope that in making responsible decisions, the Armenian leadership will act solely in the interests of its citizens," Shoigu added.

The Russian Security Council secretary noted that for almost 20 years, the South Caucasus Railway (SCR) company has responsibly fulfilled the terms of the concession agreement, including those related to investments. According to him, during this time, Russian investments in the Armenian railway system, including rolling stock, are estimated at more than 30 billion rubles.

“And now [Armenian Prime Minister] Nikol Pashinyan says that giving the Armenian railways to a Russian company scares away potential partners, hinders regional projects, and is discussing the issue of transferring the management of Armenia’s railway network to a country friendly to Russia and Armenia,” Shoigu noted.

He recalled that the agreement stipulates that SCR, as the concessionaire, will own, use, manage, operate, maintain, repair, and carry out the necessary improvements to the concession assets.

“At the time of signing the agreement, the Russian side assumed responsibility for more than 1,200 real estate properties and more than 12,500 movable assets of the Armenian railway system,” he added.

As Shoigu noted, over the past 20 years, thanks to the concession agreement, more than 15 billion rubles in taxes have been deposited in the Armenian budget, and more than 520 km of railways have been repaired, while the operating length of the network managed by the SCR is about 700 km.

“The company’s contribution to the [Armenian] republic’s economy is difficult to overestimate. All the cargo necessary for Armenia’s needs is transported by SCR CJSC,” Shoigu emphasized. “The railway also plays a strategic role, providing transport connections for a landlocked country. Behind all this are people, the [SCR] company’s employees. Currently, the company, as an employer, guarantees employment for more than 2,500 people [in Armenia]. By the way, almost all of them are residents and citizens of Armenia, who receive all the necessary social benefits.”

Shoigu noted that when discussing the concession agreement, it is worth remembering the history of the subject matter and some legal issues directly related to this agreement.

“After the collapse of the USSR, the Armenian railway system was in a serious crisis. The infrastructure had seriously deteriorated; many sections of the railway were inoperable due to avalanches and landslides. Given that the republic was practically under siege, freight traffic and the number of passengers had significantly decreased. Significant financial investments were required for modernization, including the replacement of outdated rolling stock. In these conditions, the Armenian government announced a tender for the restoration of the railway, which was won by Russia,” he said.

“In February 2008, Armenia, the Russian Railways, and the South Caucasus Railway [a specially created subsidiary of the Russian Railways] signed a concession agreement on the transfer of Armenia’s railway system to the South Caucasus Railway until 2038,” Shoigu added.

Earlier, Armenian Prime Minister Nikol Pashinyan proposed that Russia sell its concession rights to Armenia’s railways to a country friendly to both Moscow and Yerevan. He mentioned Kazakhstan, the UAE, and Qatar among the options.