The Constitutional Court has published its decision on the TRIPP agreement, finding that the obligations set out in the framework agreement between Armenia and the U.S. comply with the Constitution.
Having examined the agreement, the written explanation submitted by the government’s representative in the case and other documents in the case file, the Constitutional Court established:
1.The Framework Agreement on Strategic Cooperation between Armenia and the U.S. concerning the Trump Route for International Peace and Prosperity project (TRIPP), hereinafter also referred to as the Agreement, was signed in Washington on June 1, 2026, and in Yerevan on June 4. Its purpose is to promote international, interstate and regional peace, economic prosperity, development of transport and communication links, expansion of trade, as well as the development and strengthening of economic cooperation between the Republic of Armenia and the United States of America, each individually referred to as a Party and jointly as the Parties.
2.According to the Foreign Ministry’s opinion on the foreign-policy expediency of ratifying the Agreement, submitted with the application, the Agreement “regulates relations associated with the establishment and operation of the TRIPP Development Company, including the creation of special mechanisms, allocation of shares, implementation of development, construction and concession rights for the TRIPP project, organization of tax and customs administration, as well as other important regulatory matters. The Agreement stipulates that the Republic of Armenia fully retains its sovereignty, territorial integrity and jurisdiction over those sections of the TRIPP project located within the territory of the Republic of Armenia. In this context, Armenia will continue to exercise its full jurisdiction over state border management, border control, customs administration and all customs procedures conducted within the territory of the Republic of Armenia.”
3.The Agreement stipulates, in particular:
The U.S. and Armenia intend TRIPP to contribute to regional peace, stability, prosperity and integration, as well as create a key trade route opening new markets for both the Republic of Armenia and the United States and generating economic benefits for Armenian companies during the construction and operation of TRIPP;
The United States and the Republic of Armenia recognize that further institutionalization of peace between the Republic of Armenia and the Republic of Azerbaijan, including delimitation and demarcation of interstate borders, normalization of Armenia-Turkey relations, sustained U.S. engagement, and regional cooperation and stability will contribute to TRIPP’s success;
The Parties recognize that Armenia retains full sovereignty, territorial integrity and jurisdiction over all TRIPP implementation zones within Armenia’s sovereign territory and affirm that the Agreement and TRIPP are intended to serve as key mechanisms for a peaceful and sovereign Armenia;
TRIPP is intended to provide unobstructed multimodal transit connectivity through Armenian territory, contributing to regional peace, stability and integration with full respect for the sovereignty, territorial integrity and jurisdiction of the Republic of Armenia, while connecting the main part of Azerbaijan with its Nakhchivan Autonomous Republic and serving as a vital link for the Trans-Caspian trade route, with the expectation that TRIPP will generate mutual benefits for the Republic of Armenia through the development of international and domestic connectivity.
4.The purpose of the Agreement and the policy of the Parties is to deepen economic cooperation between them to implement TRIPP and ensure its success by introducing the instruments specified in Article 3, Paragraph 2 of the Agreement. Article 3, Paragraph 2 states: “The Parties contemplate that TDC USA [‘TDC USA’ means a commercial entity to be established in the State of Delaware as a wholly owned subsidiary of the United States International Development Finance Corporation (DFC), an agency of the United States] and Armenia will jointly establish a joint venture named TDC, in which TDC USA will hold a 74% controlling interest and Armenia a 26% interest. The Parties further contemplate that TDC will support implementation of TRIPP. For the establishment of TDC, the Parties contemplate that TDC USA and Armenia will sign two separate documents: a) the TDC Charter and b) the Shareholders Agreement [‘Shareholders Agreement’ means a commercial document governed by the laws of the United States and the State of New York that will regulate certain rights and obligations of TDC shareholders and matters relating to the governance and management of TDC].”
Article 3, Paragraphs 3 and 4 of the Agreement stipulate: “3. The Parties contemplate that, following expiration of the initial 49-year term, the Shareholders may, by mutual agreement, extend the rights referred to in Article 6, Paragraph 2 for an additional 50 years. In that event, Armenia’s interest in TDC shall increase to 49%, and the extension of the term shall constitute the sole consideration for such increase in Armenia’s interest in TDC. The increase in Armenia’s ownership interest shall constitute the sole consideration to TDC USA for the extension of the term.
The Parties contemplate that the Shareholders, as necessary, shall establish in the TDC Charter and Shareholders Agreement special decision-making mechanisms for matters requiring mutual agreement and reserved to the Parties, the details of which shall be set out in the TDC Charter and/or Shareholders Agreement.”
5.Under the Agreement, the Republic of Armenia undertakes the following obligations:
6.1. To cooperate with the United States to enable implementation of TRIPP with the aim of expanding international, interstate and domestic transport connectivity and regional and global trade, as well as strengthening peace, stability and prosperity in the region (Article 2, Paragraph 2);
6.2. To cooperate with the United States on establishing TRIPP and ensure that both Parties have a direct interest in TRIPP’s success (Article 3, Paragraph 1);
6.3. To agree to provide exceptions under Armenian legislation governing joint-stock companies, procurement and the formation of public-private partnerships to facilitate necessary transactions by TDC or its special purpose entities [“Special Purpose Entity (SPE)” means a subsidiary to be established by TDC to implement a specific component of TRIPP], and to agree that such exceptions, as necessary, will be specified in the Shareholders Agreement and/or the TDC Charter (Article 3, Paragraph 6);
6.4. To acknowledge that TDC USA will at all times remain owned and controlled by the United States and that no third party may acquire ownership rights in TDC USA (Article 3, Paragraph 7);
6.5. To acknowledge that, pursuant to Article 3, Paragraphs 4 and 5 of the Agreement, TDC, through the establishment of and its equity participation in each SPE, will reserve for itself decision-making authority over certain matters to be determined by TDC (Article 4, Paragraph 2);
6.6. To agree that TDC will be authorized to select third parties supporting each TRIPP project established by SPEs, including third parties acting as concessionaires, sponsors, operators, contractors, as well as engineering, procurement and construction service providers for the relevant TRIPP project (Article 4, Paragraph 3);
6.7. To enter into concession or other agreements with an SPE that complies with Article 4, Paragraph 3 and has been approved by TDC, pursuant to Article 3, Paragraphs 4 and 5 of the Agreement (Article 4, Paragraph 4);
6.8. To designate a responsible senior point of contact to lead the Armenian government’s involvement in the execution and implementation of the Agreement, the TDC Charter and the Shareholders Agreement, to ensure effective coordination among Armenian state bodies (Article 5, Paragraph 1);
6.9. To ensure the adoption, amendment, maintenance and enforcement of appropriate legislation for implementation of the Agreement’s objectives, as well as the timely issuance of licenses, permits and approvals for TDC and its SPEs and the implementation of regulatory procedures (Article 5, Paragraph 2);
6.10. To affirm that, in accordance with the Armenian Constitution, the Agreement will apply in the event of any conflict with Armenian legislation (Article 5, Paragraph 5);
6.11. To take all necessary measures consistent with Armenian legislation and, as promptly as possible, ensure that land along TRIPP implementation areas is or can become the property of Armenia, ensure that such land is free of any encumbrances or third-party rights, and bear all financial costs associated with these processes (Article 6, Paragraph 1);
6.12. Following the establishment of TDC and determination of each TRIPP implementation zone, to grant TDC, for an initial term of 49 years, exclusive land-use rights, development rights, related permits and all other rights to be jointly determined by the Armenian government and TDC as necessary for the efficient development, operation and/or maintenance of the relevant TRIPP project, as applicable, with those rights fully transferable to SPEs (Article 6, Paragraph 2);
6.13. To agree that TDC may develop detailed concession terms that will inform the selection of a concessionaire in accordance with Article 4, Paragraph 3 of the Agreement (Article 6, Paragraph 3);
6.14. To agree to remain the sole grantor of any concession and, as such, not to consider TDC to have assumed Armenia’s obligations in whole or in part, nor to consider TDC a concessionaire or to have assumed any obligations of SPEs or concessionaires under any concession (Article 6, Paragraph 4);
6.15. To carry out effective border management and, in accordance with Armenia’s domestic legislation and international agreements, continue to be responsible for and provide appropriate infrastructure for security and law enforcement activities, border control and border security, customs and migration control, transfer of taxes and duties to the state budget, state information systems, as well as state administrative functions and oversight (Article 8, Paragraph 1);
6.16. To use Armenia’s best efforts to adopt, maintain and optimize modern border security and customs control procedures while preserving Armenia’s sovereignty and jurisdiction, using digital tools to ensure effective operation and interoperability of TDC or its SPEs and TRIPP with regional transit networks. This may include taking steps necessary to implement a “front office-back office” operating model for customs and migration operations of TRIPP projects, in accordance with the Implementation Framework and the principles of the Joint Declaration (Article 8, Paragraph 2);
6.17. To agree to use the services of private operators, or the “front office,” to provide services requiring direct interaction with customers at relevant border crossing points in TRIPP implementation zones, by mutual agreement between Armenia and TDC (Article 8, Paragraph 3);
6.18. To exempt in Armenia dividends distributed by TDC, as an Armenian resident, to TDC USA, as a U.S. resident, from taxation, provided that the ultimate owner of TDC USA is the U.S. government (Article 9, Paragraph 1);
6.19. To agree that TDC will pay no tax in Armenia on dividends distributed to TDC by SPEs and that TDC will pay no capital gains tax in Armenia upon disposal of shares in TDC or an SPE (Article 9, Paragraphs 2 and 3);
6.20. To agree that TDC and SPEs will pay no tax in Armenia on transactions involving the transfer of rights specified in Article 6, Paragraph 2 from the Armenian government to TDC or from TDC to SPEs (Article 9, Paragraph 4);
6.21. To seek agreement with the U.S. Party regarding the interpretation and application of the Agreement and make every possible effort, through cooperation and consultations, to reach mutually acceptable solutions to any issues that may affect its implementation (Article 10, Paragraph 1).
Under Article 3, Paragraph 5 of the Agreement, matters reserved to the Parties include, but are not limited to, shareholder participation, including changes in control over TDC, transfers of TDC shares, establishment and ownership of SPEs; decisions on entering into certain major contractual and financial transactions; granting concession rights and establishing final terms of concession agreements; as well as matters concerning the Joint Declaration, national security and other matters of a political nature. Matters of a similar nature at the SPE level must also be treated as matters reserved to the Parties requiring mutual agreement, with details to be specified in the TDC Charter and/or Shareholders Agreement.
Article 6, Paragraph 6 of the Agreement stipulates that nothing in the Agreement prevents any person from constructing and operating infrastructure within Armenia’s sovereign territory that is not a TRIPP project.
Under Article 7 of the Agreement, Armenia retains its authority within its sovereign territory, and Armenian authorities have priority to act in all emergencies arising within TRIPP implementation zones. Armenia must also have the right to approve infrastructure security plans for TRIPP implementation areas, and where such plans involve private security personnel, those personnel will be subject to Armenian licensing requirements.
Article 8, Paragraph 1 of the Agreement stipulates that Armenia retains full sovereignty and jurisdiction over its borders and customs operations and has the right to maintain a physical presence at all of its border control points.
Under Article 8, Paragraph 5 of the Agreement, the Parties intend to act jointly to ensure that all border-security processes and procedures within TRIPP implementation areas are conducted in a manner facilitating the successful implementation of TRIPP, within the limits permitted by Armenian legislation.
The Constitutional Court finds that the obligations undertaken by the Republic of Armenia under the Agreement are consistent with the concept of a sovereign state enshrined in Article 1 of the Constitution and with the foreign-policy objectives established by Article 13, aimed at developing good-neighborly and mutually beneficial relations with all states on the basis of international law.
Based on the results of its examination of the case and guided by Article 168, Paragraph 3; Article 170, Paragraphs 1 and 4 of the Constitution; as well as Articles 63, 64 and 74 of the Constitutional Law on the Constitutional Court, the Constitutional Court decided:
1.The obligations stipulated in the Framework Agreement on Strategic Cooperation between the Republic of Armenia and the United States of America concerning the Trump Route for International Peace and Prosperity project (TRIPP), signed in Washington on June 1, 2026, and in Yerevan on June 4, 2026, comply with the Constitution.
2.Pursuant to Article 170, Paragraph 2 of the Constitution, this decision is final and enters into force upon publication.
