Armenia to Pay U.S. Law Firm $3.25 million In Electricity Grid Arbitration Case
Hetq.am
The Armenian government approved the payment of US$3.25 million to an American law firm to represent its interests in a case concerning the nationalization of the Electric Networks of Armenia (ENA), the country’s electricity grid.
The case is now underway at the Arbitration Institute of the Stockholm Chamber of Commerce (SCC).
The Armenian parliament, on July 3, by a vote of 65-27, approved a government-backed bill to nationalize the country’s electricity distribution utility – Electric Networks of Armenia (ENA).
ENA is partially owned by the Tashir Group, a holding corporation owned by Samvel Karapetyan who was arrested in June, and has since been detained, on charges that he made public calls for people to “seize power and to overthrow the country’s constitutional order.”
The SCC, in an expedited decision on July 22, ordered Armenia to refrain from seizing the assets of Electric Networks of Armenia CJSC, thus stymying recent moves by the Armenia government to nationalize it.
Following the Armenian government’s move to seize the ENA, the Karapetyan family, which owns 60.8% of the utility, and Cyprus-registered Liormand Holdings Ltd. filed an arbitration request with the SCC․
Armenian Minister of Justice Srpuhie Galyan told reporters in Yerevan on July 24 that the SCC decision may conflict with Armenia’s “public order” and hinted that the Armenian government may choose not to comply with the SCC decision.
The SCC, in its July 22 decision, called on Armenia not to amend the ENA’s charter, not to change the ENA’s governing board, and not to restrict the normal operation of the ENA.
The Armenian government says the law firm, Arnold & Porter, is highly experienced in arbitration cases and has a winning track record.
