Armenian opposition challenges electricity grid nationalization law in Constitutional Court

By Zhanna Avagyan

Armenia’s two parliamentary opposition blocs have filed a joint petition with the Constitutional Court on Tuesday, seeking to strike down legislation that enables the nationalization of the country’s electricity distribution network. The controversial law, fast-tracked and passed by the ruling Civil Contract party earlier this month, has come under intense scrutiny amid accusations of political retaliation and constitutional violations.

The legislation allows the government to take over management of the Electricity Networks of Armenia (ENA) without a court ruling, effectively bypassing normal due process. The move followed the arrest of Russian-Armenian billionaire Samvel Karapetyan, owner of ENA through his Tashir Group, after he publicly supported the Armenian Apostolic Church and its Catholicos, whom Prime Minister Nikol Pashinyan wants to unseat.

Opposition lawmaker Artsvik Minasyan of the “Hayastan” faction told reporters the petition challenges several provisions of the law, including the retroactive application of punitive measures, the exclusion of judicial oversight in revoking licenses, and the stripping of property rights from ENA without compensation. “The law essentially deprives a licensed company of managing its assets without a court verdict,” Minasyan said.

The legislation enables the head of the Public Services Regulatory Commission (PSRC) to remove ENA’s management and appoint a government-aligned administrator with broad decision-making powers, sidelining the company’s board, shareholders, and executives. Critics warn this undermines the PSRC’s independence, protected under Armenia’s Constitution.

The opposition has also asked the Constitutional Court to freeze the law’s implementation until a final ruling is issued, citing risks to national energy stability. “If enforced, these changes will collapse the energy system,” Minasyan warned, adding that the measure threatens to inflict “irreversible damage.”

The Constitutional Court has yet to announce whether it will admit the case. Under Armenian law, a decision is typically required within three days of filing.

The legislation is part of a broader campaign against Karapetyan, whose businesses, including the Tashir Pizza chain, have been targeted by state inspections following his outspoken support for the Church. 

Legal and economic experts warn that the law could expose Armenia to international arbitration under treaties with Cyprus, where ENA’s parent company is registered. Economists have also cautioned that the move may erode investor confidence and damage Armenia’s long-term economic credibility.

Also read: Economist warns Armenia’s power-grid nationalization could trigger costly arbitration battles

“This isn’t just a business dispute,” said economist Haykaz Fanyan. “It sends a signal that contracts and private property are not safe in Armenia.”

Despite mounting criticism, government officials have defended the legislation. Deputy Prime Minister Mher Grigoryan stated the law aligns with national interests and is grounded in the Energy Law. “This is about protecting critical infrastructure,” he said in a recent interview. 

However, opposition figures and critics maintain the law represents an erosion of legal norms and democratic safeguards. “What’s at stake is not just one company,” Minasyan said, “but the integrity of our constitutional order.”