Civilnet
By Zhanna Avagyan
Armenia’s Office of the Representative on International Legal Matters has confirmed that an emergency ruling issued by a Stockholm arbitrator in the dispute over the Electricity Networks of Armenia (ENA) is legally binding and subject to enforcement, RFE/RL’s Armenian Service (Azatutyun) reported on Monday.
The clarification came in response to inquiries from the Public Services Regulatory Commission (PSRC), according to a statement circulated by the office. “The office has presented the relevant regulations regarding the enforceability of arbitration awards, including the July 22 decision of the Stockholm emergency arbitrator, its voluntary execution, and recognition,” the statement said.
The PSRC has not disclosed when or what specific questions it submitted to the prime minister’s office, under which the legal representative’s office operates. However, according to local media reports, the head of the office, Liparit Drmeyan, previously warned the regulator that Armenia risked international sanctions if it did not suspend the mandate of ENA’s temporary administrator appointed after parliament adopted legislation enabling nationalisation of the grid.
Neither the PSRC nor the legal representative’s office has denied those reports. The only official response provided was that the Stockholm arbitrator’s ruling is binding and must be carried out.
The dispute stems from Prime Minister Nikol Pashinyan’s announcement at the end of June that the government would move swiftly to nationalise ENA, owned by Russian-Armenian billionaire Samvel Karapetyan’s Tashir Group. Within days, Karapetyan was arrested on charges of making public calls for regime change after publicly siding with the Armenian Apostolic Church in its standoff with the government.
On July 22, the emergency arbitrator of the Arbitration Institute of the Stockholm Chamber of Commerce ordered Yerevan to halt all steps aimed at seizing the utility, including changes to its management and interference with its operations. Legal experts note that Armenia, as a signatory to the New York Convention, is obliged to recognize and enforce international arbitration awards unless they contradict fundamental public policy.
Despite the ruling, officials have signalled that they may contest its enforceability. Justice Minister Grigor Minasyan argued earlier this month that Armenian courts could refuse recognition on public policy grounds, though legal scholars have dismissed that argument as weak and unlikely to stand in international practice.
The standoff has raised concerns among investors. Economists and former officials warn that non-compliance with arbitration could undermine Armenia’s investment climate and expose it to further treaty claims, particularly under the Cyprus-Armenia bilateral investment treaty that covers minority shareholders in ENA.
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