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Armenia Says Russian Railway Not Honoring Pledges

YEREVAN -- Armenia is accusing Russia of a breach of contract over a railroad agreement, RFE/RL's Armenian Service reports.

Transport and Communications Minister Gurgen Sargsian said that the state-run Russian rail company made "only 30 percent" of the investments it was to make last year.

Russia invested 3.5 billion drams ($11.5 million) in the South Caucasus Railway last year after committing to an investment of $230 million in the first five years of operations.

The railroad's new chief executive, Shevket Shaydulin, said earlier this month that Russian investments in the Armenian railway would total some $80 million this year, making up for last year's shortfall.

The rail company has, under Russian management, also been accused of spending money on expensive apartments and cars for managers and other personnel.