Armenian Opposition Leader Samvel Karapetyan Detained as Armenian Government Pushes Opposition to Back Constitutional Changes

Armenian authorities detained billionaire businessman and opposition leader Samvel Karapetyan on Wednesday in a new criminal investigation into alleged financial misconduct at the country’s main electricity distributor, accusing him of overseeing a scheme that caused approximately $170 million in losses.

The detention came during a large-scale operation targeting 65 homes and business properties, including the residence of Narek Karapetyan, who leads the opposition Strong Armenia faction in parliament.

Armenia’s Investigative Committee said 36 people face criminal prosecution over suspected embezzlement, money laundering and abuse of authority at Electric Networks of Armenia (ENA), a company controlled by Karapetyan’s business interests.

National Security Service officers took Karapetyan from his residence Wednesday morning after conducting a search that began hours earlier.

The new case comes as Karapetyan’s Strong Armenia party clashes with Prime Minister Nikol Pashinyan’s government over proposed constitutional changes that have become a central issue in Armenia’s peace negotiations with Azerbaijan.

According to investigators, Karapetyan directed a financial scheme between 2016 and 2024 involving ENA board members, senior executives and officials from affiliated companies.

Authorities allege that ENA borrowed more money than it needed to operate and then transferred funds to shareholders and other businesses through dividend payments, loans and advance payments that investigators say were unjustified.

The Investigative Committee said 23.2 billion drams, or approximately $61 million, was withdrawn from the company in 2024 and 2025, including through payments to shareholders Liormand Holdings Limited and Tashir Capital CJSC.

Investigators estimate ENA’s total losses at 64.6 billion drams, approximately $170 million.

The case also involves executives from more than a dozen affiliated companies suspected of moving money through business transactions to conceal its origins.

Prosecutors have authorized criminal proceedings against 36 suspects. Investigators have also issued detention orders, although authorities have not said how many of the other suspects have been taken into custody.

Officers from the National Security Service, Interior Ministry and State Revenue Committee are participating in the searches.

Strong Armenia has condemned the operation as politically motivated, accusing Pashinyan of targeting the party because it refuses to support his plans to rewrite Armenia’s Constitution.

In a statement Wednesday, the party claimed the prime minister had ordered the searches and arrests after failing to secure enough support for the constitutional changes. It said the investigation would not force it to abandon its political opposition to the government.

The accusations come at a sensitive moment for Pashinyan, whose government is preparing to release a draft of a new Constitution.

His ruling Civil Contract party controls 64 of the 105 seats in parliament, but at least 70 votes are needed to put constitutional changes to a referendum. That leaves the government dependent on support from opposition lawmakers.

Pashinyan has said he will try to persuade opposition parties to back the proposal and has not ruled out early parliamentary elections if those efforts fail.

Strong Armenia opposes the changes, arguing that they are being pursued to satisfy demands from Azerbaijan.

Baku has called for Armenia to remove a constitutional reference to its 1990 Declaration of Independence, which Azerbaijan says contains territorial claims against it. Pashinyan’s government denies that its constitutional initiative was launched at Azerbaijan’s request.

Karapetyan’s latest detention adds to an ongoing legal battle that began in June 2025, when he was arrested after publicly defending the Armenian Apostolic Church during a confrontation between senior clergy and the government.

He was initially charged with making public calls to seize power. Prosecutors later brought additional charges involving money laundering, tax evasion and fraud.

In December 2025, a court replaced his pretrial detention with house arrest. That case remains before the courts, and Karapetyan has denied wrongdoing.

Wednesday’s investigation is separate from those earlier proceedings.

The new allegations have not been proven in court, and all suspects are presumed innocent unless convicted.

The Investigative Committee said the investigation is continuing, with further details expected as authorities complete the searches.

This is a developing story. The Armenian Report will update this report as more information becomes available.

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