Armenia’s top legal envoy dismissed after PM rejects Stockholm arbitration ruling

By Elen Muradyan

Armenia’s top legal envoy was dismissed on Thursday after Prime Minister Nikol Pashinyan declared his government will not comply with a Stockholm arbitration order blocking the expropriation of the country’s electricity grid.

“If there are people in the government who think otherwise, let them resign immediately. If not, I will remove them myself,” Pashinyan told reporters at a government briefing. 

Liparit Drmeyan, acting head of the Office of Armenia’s Representative on International Legal Matters, was removed from his position the same day. His office had earlier stated that the Stockholm Chamber of Commerce Arbitration Institute’s emergency ruling on the Electricity Networks of Armenia (ENA) was legally binding.

The July 22 order, requested by Liormand Holdings, a Cyprus-registered company linked to ENA owner Samvel Karapetyan, barred the government from seizing shares or transferring control of the utility. The decision was based on protections in the Cyprus–Armenia bilateral investment treaty.

How the standoff began

Armenian law enforcement arrested Karapetyan, a Russian-Armenian billionaire, after he publicly voiced support for the Armenian Apostolic Church and Catholicos Garegin II in his standoff with Pashinyan, followed by financial crime charges. He was charged with calling for regime change. Hours later, the prime minister vowed to “quickly” nationalize ENA, Karapetyan’s largest asset in Armenia.

Within days, parliament passed legislation granting the government sweeping powers to remove ENA’s management and install state-appointed administrators without a court ruling. Opposition lawmakers challenged the law in the Constitutional Court, calling it unconstitutional and politically motivated.

Armenia is a party to the New York Convention, which obliges it to enforce international arbitration decisions. But Pashinyan said his administration would not comply, insisting the state must defend consumer interests.

Narek Karapetyan, vice president of the Tashir Group and nephew of the jailed businessman, has said on Facebook that Pashinyan’s defiance would only bolster their legal case. “One more such statement, and our final victory in arbitration will be inevitable,” he wrote.