The Armenian government will increase the subsidy allocated to the South Caucasus Railways by 65.2 million drams for partial compensation of losses incurred from passenger transportation.
According to the project approved by the government, the subsidy payable to the company for the year 2025 amounted to 312.2 million drams, while the state budget for 2026 had allocated 246.9 million drams for this purpose. As a result, according to the government, a difference of 65.2 million drams has arisen, which the government proposes to cover through budgetary redistribution.
The provision of the subsidy, according to the executive, is stipulated by the concession agreement signed in 2008 between the Republic of Armenia, the South Caucasus Railways, and the Russian Railways. Under this agreement, the state partially compensates the losses incurred by the company from passenger transportation, and since 2016, this compensation has amounted to 30% of the confirmed losses.
The authors of the project estimate that the change will allow the fulfillment of the state obligations undertaken under the concession agreement without additional increases in the revenues or expenditures of the state budget.
