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Armenian Prime Minister Nikol Pashinyan has proposed that Russia sell its railway concession in Armenia to a friendly nation, specifically mentioning Kazakhstan as a potential buyer. This initiative aims to enhance Armenia's economic competitiveness on the international stage.

Why Sell the Railways?

According to Pashinyan, the current management of the railways by Russian Railways (RZD branch) is leading to certain competitive disadvantages for Armenia. He believes this situation encourages international partners to bypass the country, impacting its economic potential.

"I think the solution is for some country that has friendly relations with us and with Russia to buy the concessionary management rights from the Russian Federation," Pashinyan stated, as reported by the TASS agency.

Potential Buyers Considered

Beyond Kazakhstan, the Prime Minister also identified Qatar and the UAE as potential future operators. However, it's important to note that no concrete negotiations on this matter have taken place yet.

Understanding Concessions

A concession is a form of partnership between a state and private companies. The state grants a business the right to use state-owned facilities or provide public services for a specified period. In return, the private business commits to fulfilling several conditions of the concession agreement, such as investing in the development of the facility, making concession payments to the budget, and guaranteeing the provision of quality services to the public.

This proposal highlights Armenia's strategic thinking to leverage its infrastructure for greater economic benefit and strengthen ties with key regional partners.

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