Civilnet
By Lia Avagyan
Armenia’s Public Services Regulatory Commission (PSRC) on Friday voted to revoke the operating license of Electric Networks of Armenia (ENA), the country’s main power distributor owned by the Russia-based Tashir Group. Four commissioners voted in favor and one voted against, formally ending the company’s right to operate the national low-voltage grid.
The decision came after three days of tense hearings marked by technical delays, procedural disputes and confrontations between ENA representatives and temporary managers appointed by the government. The commission ended the session abruptly due to time limits on the venue, moving directly to a vote without additional debate.
ENA’s lawyer, Aram Orbelyan, argued that the proceedings violated constitutional safeguards and were enabled by what he called “hasty” legislative amendments adopted earlier this year. He insisted that regulators had failed to present evidence of systematic wrongdoing by the company. The atmosphere grew heated at several moments, including when government-appointed temporary manager Romanos Petrosyan accused ENA’s former acting director of using “offensive” language.
One of the key unresolved issues is compensation. Under recently adopted laws, the government must attempt to negotiate a voluntary sale of ENA. If those talks fail, authorities may declare the takeover a matter of public interest, which would allow expropriation — but only with fair compensation, as required by Armenia’s Constitution.
The license revocation marks a new escalation in the broader confrontation between the government and ENA’s owner, billionaire Samvel Karapetyan. Karapetyan was arrested in June on charges of calling for regime change and later faced additional accusations of fraud, tax evasion and money laundering. His lawyers dismiss all charges as politically motivated.
Karapetyan’s family has filed a $500 million arbitration claim against Armenia at the Stockholm Chamber of Commerce, arguing that the government’s actions violate international investment protections. Several prominent business figures have warned that the dispute could damage the country’s investment climate, especially as Armenia is already entangled in other costly international arbitration cases.
Following the revocation, the government must decide whether to continue temporary management of ENA, negotiate a buyout with Tashir Group, or initiate compulsory acquisition through a public-interest mechanism. The sole commissioner who voted against the decision, Ara Nranyan, said he will submit a formal dissenting opinion.
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