YEREVAN. – The project of a new railway branch Vanadzor-Fioletovo is quite real in the northern part of Armenia, head of the Russian Railways Company Vladimir Yakunin told the journalists on Wednesday adding the project is real and socially important.

To note, Vanadzor-Fioletovo 31-km-long railway branch will allow closing the railway ring in the north of Armenia and reduce the traffic till the Georgian border. According to the Armenian Minister of Transportation and Communications Manuk Vardanyan, the project may cost $200 million, to be invested equally by the Armenian Government and the South Caucasus Railways Company.

The South Caucasus Railways is a 100% subsidiary of the Russian Railways Company and manages Armenian railways on concession. The contract is signed for 30 years in 2008 with 10 years of possible prolongations.