Russian-Armenian billionaire Samvel Karapetian, whose Tashir Group conglomerate bought the Electric Networks of Armenia (ENA) utility in 2015, was charged on June 18 calling for violent regime change hours after condemning Pashinian’s campaign against the Armenian Apostolic Church. He rejects the charges as politically motivated.
“The plan for the nationalization of Electric Networks of Armenia is ready,” Pashinian wrote on Facebook. “We will enter the practical phase very soon.”
He gave no details of that plan. His press secretary, Nazeli Baghdasarian, did not answer phone calls from RFE/RL’s Armenian Service The chairmen of relevant standing committees of the Armenian parliament could also not be reached for comment.
Hasmik Hakobian, another parliament deputy representing the ruling Civil Contract party, said the plan cited by Pashinian involves a bill drafted by government officials and “many” of her fellow pro-government lawmakers.
“The draft has not yet been circulated by the [party’s parliamentary] faction,” she said. “As a result of discussions in the near future, we will be able to have an opinion that we can also share with the media.”
Pashinian already stated on June 18 that such a draft has been “circulated.” Senior Civil Contract parliamentarians effectively denied that.
Prime Minister Nikol Pashinian meets with businessman Samvel Karapetian, Yerevan, June 24, 2021.
Pashinian also claimed that ENA must be confiscated by the state because of having created a “near energy crisis” in Armenia with the possible aim of increasing public discontent with the government. Opposition leaders dismissed the claim, saying he wants to seize the company as part of his efforts to punish Karapetian. They warned that the nationalization would deal a serious blow to Armenia’s business reputation.
No major company is known to have been nationalized in the country to date. The Armenian Civil Code allows the state to seize private business assets in case of enacting a special law and properly compensating their owners.
Suren Parsian, an independent economist, suggested that Pashinian’s administration will accuse ENA of various breaches of its operating license to avoid paying Tashir Group any compensation. He said the parent company will inevitably respond to the seizure with legal action.
The Armenia government is already facing massive lawsuits by a number of foreign investors who have done business in the country. It has failed to attract large-scale foreign investment during Pashinian’s seven-year rule.
Tashir, which is headquartered in Moscow and controls Russian energy facilities, claims to have invested $700 million in Armenia’s aging power distribution network over the past decade. Karapetian’s group says that it has also cut the network’s massive losses by more than half and saved some $30 million annually since 2016, allowing ENA to keep the electricity prices in the country unchanged.
