Prime Minister Nikol Pashinian pledged to “quickly” nationalize the Electric Networks of Armenia (ENA) operator on June 18 hours after Karapetian was arrested following his strong criticism of the premier’s campaign against the Armenian Apostolic Church.
The Armenian parliament controlled by the ruling Civil Contract party hastily approved on July 2 a government bill allowing the government to “temporarily” take over ENA’s management before forcing the company’s owner to sell it within three months. The Public Services Regulatory Commission (PSRC), the energy regulator headed by a political ally of Pashinian, was authorized to approve such action.
The PSRC chairman, Mesrop Mesropian, promptly approved the government’s choice of the “interim manager” of ENA pending the commission’s consideration of government allegations that Karapetian’s Tashir Group has mismanaged the electricity distribution network. The regulator has to decide by November 18 whether ENA’s owner should be stripped of its operating license and forced to sell the company at a price to be essentially determined by the Armenian government.
In an apparent attempt to embarrass the PSRC, Karapetian’s nephew and right-hand man in Armenia, Narek Karapetian, said on Tuesday that about two weeks before the tycoon’s arrest Tashir asked the commission for permission to cut the electricity prices. He said it rejected the request.
The PSRC did not explicitly deny that on Wednesday. In a statement, it claimed that the proposed price cut was too modest and not financially sustainable.
Narek Karapetian, who also heads ENA’s board of directors, dismissed the claim. He insisted that ENA is in a position to charge consumers less for electricity because of additional revenues earned as a result of greater efficiency and cost cutting. The company will formally repeat its offer to the regulator on Thursday, he wrote on Facebook.
Karapetian Jr. is also the coordinator of a new opposition movement launched by his uncle two months ago. The movement called In Our Way rallied thousands of supporters in Yerevan on October 18 to demand the release of its top leader and other “political prisoners.” It is expected to be a major contender in Armenia’s next parliamentary elections due in June 2026.
Shortly after ENA’s effective seizure by the government, Tashir appealed to the Arbitration Institute of the Stockholm Chamber of Commerce (SCC). The tycoon’s conglomerate headquartered in Moscow is seeking $500 million in damages for what it calls an illegal “expropriation” of its biggest asset in Armenia.
Later in July, the SCC ordered the Armenian authorities to refrain from confiscating ENA from Tashir, changing ENA’s top management or revoking its parent company’s operating license pending a verdict in the case. The authorities ignored the order.
