Karapetyan family files official investment dispute notice against Armenia 

By Elen Muradyan

The family of Russian-Armenian billionaire Samvel Karapetyan, founder of the Tashir Group, has formally notified the Armenian government of an investment dispute, warning that the state's actions against him and the Electricity Networks of Armenia (ENA) may result in international arbitration and a demand for full compensation.

In a statement issued on Monday, the Karapetyan family said the notice was filed under the 1995 Agreement on the Promotion and Reciprocal Protection of Investments between Armenia and Cyprus, a treaty that allows investors to pursue international legal remedies when their rights are violated by a host state.

According to the statement, the dispute arises from what the family describes as a politically motivated campaign by Prime Minister Nikol Pashinyan targeting Karapetyan’s business interests in Armenia, particularly ENA, which is beneficially owned through Cyprus-registered Liormand Holdings Limited.

Tensions began earlier last month when Pashinyan publicly attacked the Catholicos of All Armenians, accusing the Church leader of moral failings and calling for his defrocking. Karapetyan, a long-time supporter of the Armenian Apostolic Church, responded by defending the Catholicos in a media interview. Within days, Pashinyan posted multiple public threats against Karapetyan on Facebook.

On June 17, Armenian police raided Karapetyan’s residence in Yerevan. He was arrested and charged with making a public call to overthrow the government — a charge his legal team calls unlawful and retaliatory. The following day, a Yerevan court placed him in a two-month pre-trial detention.

On the same day, Prime Minister Pashinyan announced that ENA would be nationalized, marking a dramatic escalation. State institutions quickly mobilized to execute the decision. In less than a week, draft legislation enabling the expropriation of ENA was prepared and submitted to parliament. A special extraordinary session of the National Assembly is set for July 1.

The investment dispute notice describes the state’s actions as arbitrary, discriminatory, and politically motivated, accusing Armenian authorities of attempting to dispossess the Karapetyan family of their legal assets. The notice claims these measures violate Armenia’s international obligations under the 1995 treaty, particularly its commitments to fair and equitable treatment, full protection and security, and protection against unlawful expropriation.

“The responsible state officials of the Republic of Armenia failed to guarantee legal security for the Karapetyan family and their investments,” the notice states. “Should the violations continue, the Republic of Armenia will face international arbitration proceedings and be ordered to pay full compensation.”

The filing also highlights that Armenia is already facing at least three separate investor-state arbitration claims initiated by investors from Cyprus, the United States, Canada, and Lebanon, all of which concern allegations of unlawful treatment and obstruction of foreign investment.

The Armenian government has yet to publicly respond to the notice. Economy Minister Gevorg Papoyan and ruling party lawmakers have defended the planned nationalization of ENA as being in the “public interest,” citing frequent power outages and alleged operational failings by the company — claims ENA denies.

If arbitration proceeds, it would mark one of Armenia’s highest-profile investment disputes to date, with potential implications for the country’s legal credibility and investment climate.