Armenia Revokes Power Grid Operator’s License in High-Stakes Dispute With Russian-Owned ENA

Armenia has taken its most serious step yet in its war with the Electric Networks of Armenia (ENA) by cancelling the company’s right to operate the national electricity grid. On Friday, the Public Services Regulatory Commission (PSRC) voted to revoke ENA’s operating license, with four commissioners supporting the move and one voting against it. ENA, owned by the Russia-based Tashir Group, has managed the country’s low-voltage power network for years, making this decision one of the most significant regulatory actions taken in Armenia’s energy sector.

The vote followed three days of difficult and tense hearings. The process was interrupted several times because of technical problems and disagreements over procedure. ENA’s representatives and government-appointed temporary managers frequently clashed, showing how strained the relationship had become. The PSRC ended the final session suddenly when time ran out for the venue, choosing to hold the vote immediately without further discussion.

ENA’s lawyer Aram Orbelyan strongly objected to the proceedings. He argued that the process broke constitutional rules and was made possible only because of “hasty” legal changes adopted earlier this year. He also said the regulators did not present clear evidence that ENA had committed serious or repeated violations. The atmosphere in the hearings became tense more than once, especially when temporary manager Romanos Petrosyan accused ENA’s former acting director of using “offensive” language.

One of the biggest open questions now is compensation. Under recent changes in Armenian law, the government must first attempt to negotiate a voluntary sale of ENA from the Tashir Group. If the negotiation fails, the state can declare that taking control of ENA is a matter of public interest. This would allow the government to expropriate the company, but only if it provides fair compensation, as required by Armenia’s Constitution.

The revocation of the license is the latest step in a much larger conflict between the Armenian government and ENA’s owner, billionaire Samvel Karapetyan. Karapetyan was arrested in June on accusations of calling for regime change. Later, prosecutors added charges of fraud, tax evasion and money laundering. His legal team says all of these accusations are politically motivated and have no real basis.

Karapetyan’s family has already taken the dispute to international arbitration, filing a $500 million claim against Armenia at the Stockholm Chamber of Commerce. They say the government’s actions break the rules that protect foreign investments. The case has caused concern among business leaders, who warn that Armenia’s investment climate could suffer. The country is already facing several other expensive international arbitration cases, and this new conflict could add more financial and political pressure.

With ENA’s license now revoked, the government must decide what comes next. It may choose to keep the company under temporary state management. It could start negotiations with the Tashir Group to buy the company. Or it may begin the legal path toward compulsory acquisition if it declares the issue a matter of public interest. The only commissioner who voted against the decision, Ara Nranyan, said he plans to submit a formal dissent explaining his position.

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