Civilnet
By Arshaluys Mgdesyan
A senior ruling-party lawmaker has framed the push toward state control of Electric Networks of Armenia (ENA) as a response to long-standing governance and security concerns linked to the country’s power grid, rather than a rejection of free-market principles.
Babken Tunyan, deputy chair of parliament’s standing committee on economic affairs, said yesterday ENA has a special place in Armenia’s economy, arguing that the reliability of the electricity grid is directly tied to national security and public interest.
“ENA is not a regular company. This is not only about the economy, it is also about the country’s security,” he said in an interview with CivilNet.
Moves to establish control over ENA began after its owner, dual Armenian-Russian billionaire Samvel Karapetyan, publicly expressed support for the Armenian Apostolic Church in June, amid escalating tensions between the government and the church. Initially charged with public calls to seize power, he was later accused of money laundering and tax evasion. His trial remains ongoing.
Later in July, an arbitration body in Sweden ruled that Armenia’s government must refrain from seizing ENA or appointing its external management. However, the government nevertheless installed its own personnel as interim leadership of the company and later indicated that Karapetyan would be compensated should the takeover go through.
Tunyan said management problems at ENA’s power grid had accumulated over many years and were reflected in frequent outages and voltage fluctuations that damaged household electrical appliances. He added that the current scrutiny is focused on fixing system-wide problems, not on going after anyone for political reasons.
Tunyan also rejected claims that the ENA case has worsened Armenia’s investment climate, saying greater damage was caused by “years of non-transparent schemes, patronage and the absence of the rule of law.” The difference now, he said, lies in the public nature of the process. “Everything is happening openly, with public statements and visible actions,” Tunyan explained.
Also read: Economists warn Armenia’s planned power grid nationalization threatens investment climate
The lawmaker linked the ENA dispute to a broader debate over the state’s role in major companies since the 2018 revolution. Armenia has acquired stakes in several large firms, including communications company Viva Armenia, the country’s largest mine, known as the Zangezur Copper-Molybdenum Combine, and Lydian Armenia, another mining venture.
Tunyan said discussions are underway over why the state should retain shares in private companies and for how long. Oversight, he said, does not require large holdings.
“If the goal is oversight, the state doesn’t need to hold a large stake. It doesn’t have to be 15% or 20% — it could be 1%, or even none at all,” he explained.
Tunyan added that an exit strategy is being considered, under which state stakes would be used to bring companies to the capital market and eventually sold through initial public offerings. Such listings, he said, could boost transparency and help develop Armenia’s capital market.
“The aim is for shares to be held by as many citizens as possible, not one or two players,” Tunyan concluded, adding that the government plans to publicly outline its long-term policy on state-held stakes by early 2026.
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