The Public Services Regulatory Commission (PSRC) formally stripped Electric Networks of Armenia (ENA) of its operating license five months after Prime Minister Nikol Pashinian pledged to “quickly” nationalize the company hours after Karapetian was arrested on June 18 on charges stemming from his strong criticism of the premier’s campaign against the Armenian Apostolic Church.
The Armenian government forcibly took over ENA’s management in July, accusing Karapetian’s Tashir Group of mismanaging the country’s power distribution network. Tashir responded by appealing to the Arbitration Institute of the Stockholm Chamber of Commerce (SCC).
Later in July, the SCC ordered the authorities in Yerevan 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.
The PSRC’s decision means that ENA can be nationalized if the two sides fail to agree within the next three months on its sale to another investor. In that case, the government will have to pay Tashir hefty compensation equivalent to ENA’s market value.
In its ongoing arbitration case in Stockholm, the tycoon’s conglomerate headquartered in Moscow is already seeking $500 million in damages for what it calls an illegal “expropriation” of its biggest asset in Armenia. Mesrop Mesropian, a Pashinian ally heading the PSRC, seemed untroubled by the prospect of paying it a comparable sum huge by Armenian standards.
“There is a possibility of that, but I consider it a manageable risk,” Mesropian told reporters after the decision denounced by Karapetian’s representatives as baseless and politically motivated.
Critics of the Armenian government view the seizure of ENA as a serious blow to Armenia’s business reputation. They say it will scare away major foreign investors who have already shown little interest in the South Caucasus nation during Pashinian’s seven-year rule. Global ratings agency Moody's downgraded ENA’s key ratings in September, citing the company’s “heightened susceptibility to government influence and regulatory risks.”
Karapetian was initially prosecuted for allegedly calling for a violent overthrow of Pashinian’s government. He was also charged with tax evasion, fraud and money laundering in July after pledging to fight for regime change. New opposition set up by him group in early September is expected to be a major contender in Armenia’s next parliamentary elections due in June 2026.