Russian-Armenian billionaire Samvel Karapetyan and his family have won an urgent international arbitration case before the Stockholm Emergency Arbitration Tribunal against the Armenian government regarding the attempted nationalization of Electric Networks of Armenia (ENA). The ruling was issued by the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) on July 22, 2025, and is legally binding.
The arbitration panel, convened under the Armenia–Cyprus Agreement on the Promotion and Reciprocal Protection of Investments (1995), ruled in favor of Karapetyan, whose Tashir Group owns ENA. The tribunal ordered the Armenian government to refrain from applying provisions of the newly adopted laws “On Energy” and “On the Public Services Regulatory Commission” to ENA and to halt any further actions aimed at expropriating the company.
According to a statement released by Karapetyan’s Defense Council, the tribunal concluded that urgent interim measures were necessary, citing “serious doubts” about the Armenian government’s compliance with international investment agreements. The ruling emphasized that without such measures, the Karapetyan family could suffer irreparable harm, including the potential loss of ownership or control over ENA, and would likely face difficulty obtaining adequate compensation in the future.
The case was initiated following a string of actions by the Armenian government, including Prime Minister Nikol Pashinyan’s June announcement of a plan to nationalize ENA. On July 3, 2025, the National Assembly passed legislative amendments enabling the nationalization of strategic facilities, including ENA.
Karapetyan, who was arrested in Armenia on June 18 on charges of publicly calling for the seizure of power after a meeting with Catholicos Garegin II, has been at the center of a growing confrontation between the government and his Tashir Group.
In a statement released after the arbitration ruling, the Armenian government defended its decision to appoint Romanos Petrosyan as temporary manager of ENA on July 18, arguing that the move does not contradict the Stockholm tribunal’s ruling.
“The subject of consideration in the urgent proceedings differs from the objectives of appointing a temporary manager,” the government said, adding that the appointment aimed to prevent energy crises, maintain public order, and identify violations at the company.
The government emphasized that while it respects decisions issued by foreign arbitration bodies, domestic legislation and international treaties on the recognition and enforcement of arbitration rulings remain in effect. “Everyone is obliged to be guided by the legislation of the Republic of Armenia,” the statement added.
Electric Networks of Armenia, a subsidiary of the Tashir Group, operates Armenia’s medium and low-voltage power distribution systems and serves around 1 million subscribers nationwide. Since acquiring the company in 2016, Karapetyan’s group claims to have invested approximately $680 million in network modernization, with an additional $150–200 million spent on expanding capacity.
However, in recent years, public dissatisfaction with ENA’s performance has grown, with complaints about frequent power outages, voltage fluctuations, and delays in connecting new customers. These issues have fueled the government’s push to regain control over the country’s energy infrastructure.
The Stockholm tribunal’s ruling, though preliminary, puts a legal brake on Armenia’s rapid move toward nationalization and signals that further attempts to seize ENA could violate international investment protections.
While the arbitration decision is binding, long-term legal proceedings are still expected, as both parties prepare for a broader arbitration case on the legality of the nationalization itself.
For now, ENA remains under the management of a state-appointed interim administrator, while ownership continues to rest with Karapetyan’s Tashir Group.
