Billionaire Samvel Karapetyan’s Family Files Legal Dispute Against Armenian Government Over ENA Takeover

The Armenian government is now facing one of its most serious legal challenges yet as the family of Russian-Armenian billionaire Samvel Karapetyan has filed an official notice of investment dispute. This move warns that Armenia could soon face international arbitration and potentially be ordered to pay full compensation for what the Karapetyans describe as an illegal and politically motivated campaign to take over their company, the Electricity Networks of Armenia (ENA).

The situation began in early June, when Armenian Prime Minister Nikol Pashinyan launched a public attack on the Armenian Apostolic Church, accusing its leader, the Catholicos of All Armenians, of personal failings. Samvel Karapetyan, a major backer of the Church and its institutions, publicly defended the Catholicos. Soon after, Pashinyan escalated tensions by making public threats against Karapetyan on social media.

The standoff took a more serious turn on June 17, when police raided Karapetyan’s home in Yerevan and arrested him. He was charged with inciting public calls to overthrow the government—an accusation his lawyers say is both false and politically motivated. The following day, a court ordered him to remain in jail for two months pending trial.

Just hours after Karapetyan’s arrest, Pashinyan announced that the government would nationalize ENA, a company Karapetyan’s Tashir Group has owned and operated since 2015 through a Cyprus-based company. The government quickly acted on this decision, drafting a law to take over ENA and scheduling an extraordinary session of parliament on July 1 to approve it.

In response, the Karapetyan family submitted a formal notice of investment dispute under the 1995 Armenia–Cyprus treaty that protects foreign investors. This legal agreement allows companies to take governments to international court if their investments are treated unfairly or taken without proper compensation.

The family argues that the Armenian government’s actions are “arbitrary, discriminatory, politically motivated and aimed at dispossessing the Karapetyan family of ENA.” They claim these actions violate Armenia’s international commitments, including promises of fair and equitable treatment, legal protection, and safeguards against unlawful seizure of private property.

“The responsible state officials of the Republic of Armenia failed to guarantee legal security for the Karapetyan family and their investments,” the official notice said. It warned that if the violations continue, Armenia will be taken to international arbitration court.

This is not the first time Armenia has faced international legal disputes. The Karapetyan family’s filing list that Armenia is already dealing with multiple investor-state arbitration cases brought by individuals and companies from Cyprus, the United States, Canada, and Lebanon. These cases all center on complaints of unfair treatment by Armenian state authorities.

Now, the dispute with Karapetyan threatens to become one of the most high-profile and costly cases yet. The Tashir Group claims to have invested at least $700 million to improve Armenia’s aging electric grid since acquiring ENA in 2015. According to the company, it also reduced the system’s energy losses by half and saved the country $30 million per year, which helped keep electricity prices stable for nearly a decade.

Despite the legal warnings, the Armenian government has pressed ahead with its plans. A package of amendments has been rushed through parliament under emergency procedures. These laws would allow the state to take control of ENA’s operations, with the argument that the company is failing to maintain stable electricity service. The government cites power outages and alleged mismanagement as justification, though ENA denies the allegations.

Deputy Minister of Infrastructures Armen Simonyan told lawmakers that due to the strategic importance of ENA, quick action is necessary. But opposition leaders rejected that explanation, saying the rushed legislation proves the nationalization effort is a punishment against Karapetyan for standing up to Pashinyan.

The Prime Minister has also shifted his message slightly in recent days. On June 26, he suggested that the government would first take over ENA’s management “in a calmer atmosphere” and then consider next steps—indicating a more gradual approach to the takeover.

The legal case now raises critical questions about the future of private investment in Armenia. If courts agree that ENA is being seized for political reasons, the government could face not only international embarrassment but a massive financial penalty.

The Karapetyan family’s legal filing also points to a larger concern: whether Armenia remains a safe place for investment, particularly for members of the Armenian diaspora who have long contributed to the country’s economic development.

As of now, the government has not officially responded to the investment dispute notice. But what’s clear is that this battle is no longer just about energy—it’s about trust, law, and Armenia’s future as a fair and stable country for both its citizens and investors around the world.

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