Samvel Karapetian and his family formally warned the government of the legal action late on Monday hours before the Armenian parliament began debating a government bill paving the way for the nationalization of the Electric Networks of Armenia (ENA) operator.
Pashinian pledged to “quickly” nationalize ENA on June 18 hours after Karapetian was arrested in Yerevan following his strong criticism of Pashinian’s campaign against the Armenian Apostolic Church. He accused the company of creating a “near energy crisis” in Armenia with the possible aim of increasing public discontent with his government.
Armenian opposition leaders and other government critics countered that Pashinian is simply keen to punish Karapetian. They warned that ENA’s nationalization would be illegal and deal a serious blow to Armenia’s business reputation.
Pashinian subsequently opted for a more gradual tactic of seizing the company. He said on June 26 that the government will first “take over the management of ENA” and then “discuss further scenarios in a calmer atmosphere.”
A package of legal amendments hastily drafted by the government and submitted to the parliament would empower authorities to do that if they conclude that ENA is mismanaging the country’s power grids. The National Assembly controlled by Pashinian’s party debated the bill on Tuesday under an emergency procedure allowing its passage in the first and second readings within 24 hours.
“Considering the strategic [importance of the] sphere, we believe that such issues need to be urgently resolved,” Armen Simonian, a deputy minister of infrastructures, told the parliament.
Opposition lawmakers brushed aside the official explanation, saying that the urgent and short debate only proves that government actions against ENA are politically motivated. Karapetian is accused of calling for a violent overthrow of Pashinian, a charge he strongly denies.
Armenia – An Electric Networks of Armenia facility, March 13, 2025.
In a statement issued the previous night, Karapetian and his family, who own ENA through a company registered in Cyprus, likewise described the “expropriation” effort as government retribution for the tycoon’s defense of the church and its top clergy at odds with Pashinian. They said they have “sent a notice of investment dispute” to relevant Armenian officials.
“In the notice, the Shareholders argue that the actions of the Armenian state officials are arbitrary, discriminatory, politically motived and aimed at dispossessing the Karapetian family of ENA. As such, these actions breach several commitments taken by the Republic of Armenia in the Armenia–Cyprus investment agreement of 18 January 1995, which state officials are obliged to respect,” read their statement.
“If the responsible state officials of Armenian proceed with those violations of its obligations under the Agreement and international law, it will face international arbitration proceedings and be ordered to pay full compensation,” it warned.
Pashinian’s government is already facing massive lawsuits by a number of foreign investors who have done business in Armenia, a fact noted by the statement.
Karapetian’s Moscow-based Tashir Group conglomerate claims to have invested at least $700 million in the aging power distribution network since buying it from a Russian energy giant in 2015. It says that it has also cut the network’s massive losses by more than half and saved some $30 million annually, allowing ENA to keep the electricity prices in the country unchanged for the past decade.
