Pashinian called for the nationalization of the Electric Networks of Armenia (ENA) operator last June just hours after its owner, Samvel Karapetian, was arrested on charges stemming from his strong criticism of the premier’s campaign against the Armenian Apostolic Church.
Karapetian was also charged with tax evasion, fraud and money laundering following his subsequent decision to set up a new opposition group to challenge Pashinian’s party in Armenia’s next parliamentary elections due in June 2026. The tycoon, who was moved to house arrest late last month, rejects all the accusations as politically motivated.
The government forcibly took over ENA’s management in July, accusing its parent company owned by Karapetian, Tashir Group, of mismanaging the power distribution network. Tashir rejected the accusations before appealing to the Arbitration Institute of the Stockholm Chamber of Commerce (SCC).
Armenia’s Public Services Regulatory Commission (PSRC), a body headed by a political ally of Pashinian, formally revoked Tashir’s operating license on November 17. The decision meant that ENA can be nationalized if the two sides fail to agree within the next three months on its sale to another investor. In that case, Pashinian’s government will have to pay Tashir hefty compensation exceeding ENA’s market value by 15 percent.
“If ENA’s market value is affordable for the state budget, we will nationalize it in full and then contract a professional foreign company or group of companies to manage it,” Pashinian told journalists. “A process of assessing the market value of ENA is now underway.”
He declined to say who is determining the utility’s valuation or give other details of that process. But he hinted that the government will not set a high price for ENA.
“It may turn out that ENA’s financial situation is so bad that its market value is very low, and the government may decide to allocate some money and make it [state-owned,]” added Pashinian.
Global ratings agency Moody's downgraded ENA’s key ratings in September, citing the company’s “heightened susceptibility to government influence and regulatory risks.”
According to Davit Ghazinian, a Tashir representative who managed ENA until July, the government has still not made any offers to Karapetian regarding the future of his biggest asset in Armenia. Ghazinian said that only an independent international entity can objectively estimate ENA’s market value.
Tashir is seeking $500 million in damages for what it calls an illegal “expropriation” of Karapetian’s biggest asset in Armenia. The SCC ordered the Armenian authorities last summer to refrain from confiscating ENA, changing ENA’s top management or revoking Tashir’s operating license pending a verdict in the case. The authorities ignored the order.
Critics view ENA’s seizure as a serious blow to Armenia’s business reputation. They say it will scare away major foreign investors who have already shown little interest in the South Caucasus nation during Pashinian’s nearly eight-year rule.