The Armenian government has decided to increase the subsidies for the South Caucasus Railways (Yukzhd) by 65.2 million drams for the year 2025. This is stated in the justification for the government decision.
The basis for the subsidy payment is the concession agreement signed on February 13, 2008, between the Republic of Armenia, Yukzhd, and Russian Railways. According to the agreement, the state partially compensates the annual losses from passenger transportation along agreed routes and volumes.
By the end of 2025, the amount of subsidy to be paid in 2026 is expected to be 312.2 million drams, while the state budget allocated 246.9 million drams for this purpose. As a result, a debt of 65.22 million drams has arisen.
Moreover, the increase in the subsidy amount will not require additional expenditures from the state budget, as the subsidy is paid in an amount equivalent to the concession fee paid by the company to the Armenian budget.
