Businessman Samvel Karapetyan Demands $500 Million from Armenian Government Over Power Company

Russian-Armenian businessman Samvel Karapetyan and his family are demanding $500 million in compensation from the Armenian government. The claim is linked to a dispute over Electric Networks of Armenia (ENA), a major private power company that was taken under state control earlier this summer.

The conflict began in June when Prime Minister Nikol Pashinyan said the government would move to nationalize ENA. The announcement came only hours after Karapetyan was arrested in Yerevan. His detention followed public remarks in which he strongly criticized the prime minister’s campaign against the Armenian Apostolic Church.

Prosecutors accused him of making statements that amounted to “a call for the violent overthrow of the government.” Later, he was also charged with large-scale fraud, tax evasion, and money laundering. Karapetyan has rejected the allegations, calling them politically driven.

In July, Armenia’s parliament, which is led by Prime Minister Pashinyan’s Civil Contract party, passed a law allowing the government to take control of ENA for a limited time. This opened the way for the state to either fully nationalize the company or hand it over to a different owner.

An international arbitration body, the Arbitration Institute of the Stockholm Chamber of Commerce, has ordered Armenia to suspend its takeover of the company. The decision says the government cannot replace the management of ENA or cancel the license of its parent company, which is based in Cyprus and owned by Karapetyan’s Tashir Group.

Despite this, Armenian officials have said they will not follow the request unless it is confirmed by a local court. The government has kept Romanos Petrosyan, a senior Civil Contract party figure, as ENA’s “interim manager.”

On Tuesday, Karapetyan’s lawyers said the $500 million claim is based on an investment treaty signed between Armenia and Cyprus 30 years ago. They have filed the case with an arbitration tribunal that will review the dispute.

According to his lawyers, the government’s actions were “arbitrary, discriminatory, politically motivated, and aimed at depriving [the family] of their ownership rights related to ENA.” They say forcing a change in management is an illegal seizure of property.

The Armenian government has not issued an official reaction to the claim. The Ministry of Justice did not respond to questions, and attempts to reach Petrosyan were unsuccessful. Justice Minister Srbuhi Galyan has previously said the government would present its case in arbitration and then assess the possible risks.

Officials have defended the decision to take control of ENA, blaming the company for frequent blackouts and what they say is poor management. ENA has denied those accusations.

At a press conference on July 16, Pashinyan downplayed worries about the potential cost of the legal case.

“Arbitration is a legal process. Claims are filed against the government or its bodies in domestic courts as well… The government both files and faces arbitration claims. It’s part of the normal course of work, and I don’t believe it has a significant impact on the issue we’re discussing,” he said.

Government officials have also rejected concerns that the dispute could harm Armenia’s reputation with investors.

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