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Jun 13, 2015

Russian Railways statement on construction project to build Iran - Armenia railway line

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As Russian Railways has noted previously, the Company believes that from a geopolitical point of view, the construction project to build a railway line is of strategic importance to the Republic of Armenia in order to integrate the Republic's transport infrastructure into the Eurasian and global transport system.

However, as we have stated earlier, the considerable costs and long payback periods involved in projects of this scale render them commercially unattractive for businesses - their realisation without government support is therefore difficult.

Russian and international experience, however, shows that government support for strategic infrastructure projects creates a significant multiplier effect for industry and is essential for the sustainable development of the economy as a whole.

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