Civilnet
By Lia Avagyan
Armenia moved closer to stripping the country’s main power distributor of its operating license, after the state regulator published a draft decision proposing to revoke Electric Networks of Armenia’s (ENA) permit.
The state regulator, the Public Services Regulatory Commission held a tense hearing on Thursday attended by both the government-appointed temporary managers of ENA and representatives of the company’s owners. The regulator cited multiple violations — including alleged falsification of company documents — as it formally opened proceedings. The draft decision sets out the legal grounds for voiding the license.
It marks the latest twist in the ongoing saga over the fate of ENA, which holds a monopoly of Armenia’s low-voltage power grid.
Efforts by the government to seize the company began in June, when law enforcement arrested the company’s billionaire owner, Samvel Karapetyan, on charges of making calls for regime change.
Shortly after that, lawmakers passed a bill allowing the government to seize control of ENA, while law enforcement launched raids on dozens of locations apparently connected to Karapetyan as part of a probe into his sprawling business empire.
After his arrest, investigators slapped Karapetyan, a dual Armenian-Russian citizen, with additional charges of fraud, tax evasion, and money laundering. Karapetyan’s lawyers reject the charges against him and call them politically motivated.
Karapetyan’s family has since filed a $500 million claim against Armenia in a global arbitration body, demanding compensation for what they allege is a violation of an international investment treaty. That case, which is being heard by the Stockholm Chamber of Commerce in Sweden, remains ongoing.
The government’s moves to seize ENA have spooked the private sector, with a number of prominent business leaders and former senior officials warning it could threaten Armenia’s attractiveness to foreign investors.
They also point out that Armenia already faces a number of other potentially costly arbitration claims. Those suits also remain ongoing.
Despite that criticism, Pashinyan has continued to insist that improving the country’s business environment is a priority for this administration.
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