ANC condemns nationalization of ENA, violation of property rights 

ArmInfo.  The Armenian National Congress (ANC) party strongly condemns the process of nationalization of the Electric Networks of Armenia (ENA) by the authorities of the republic, which grossly violates the right of ownership, the principles of the rule of law and is a clear manifestation of open political repression. This is stated in the statement of the ANC, led  by the first president of the Republic of Armenia Levon  Ter-Petrosyan.

The statement emphasizes that the nationalization of ESA, carried out without negotiations with the owners, fair compensation and compliance with the procedures established by law, violates Article 60 of the Constitution of the Republic of Armenia, which guarantees the inviolability of property. "The legislative amendments adopted by the authorities do not comply with international law, in particular, the Agreement on the Protection of Investments between the Republic of Armenia and the Russian Federation.  This not only jeopardizes the  legitimate interests of Tashir Holding, the owner of ESA, but also undermines confidence in the investment environment in the Republic of Armenia. The nationalization process of ESA is clearly illegal. The legislative amendments adopted by the National Assembly on July 3, 2025, for obvious political reasons and entered into force on July 8 with the assistance of the President of the Republic of Armenia Vahagn Khachaturyan, grant the Public Services Regulatory Commission  (PSRC) unconstitutional powers to appoint a "temporary manager" with dictatorial powers, do not ensure transparency of the process and do not establish fair compensation mechanisms. Moreover, the mechanism for making decisions by the PSRC on issuing a license to ESA opens the way for arbitrariness without objective evidence of the company's  violation of the license terms. This indicates a selective  application of the law and the intention of state bodies to resort to abuses. The real reason for the political repressions of the  authorities against the owner of "ESA" Samvel Karapetyan is his support for the Armenian Apostolic Holy Church, and the reason for the accusation was a public statement that did not contain any illegal provisions," the statement says.

The Armenian National Congress calls on law enforcement agencies and the judicial system to immediately review the process of nationalization of "ESA" and ensure the protection of property rights, citizens of Armenia and civil society - to join the struggle for the protection of property rights, the rule of law, freedom of speech and religious freedoms, members of the National Assembly of the Republic of Armenia, in accordance with paragraphs 2-3 of Article 101 of the Constitution, to apply to the Constitutional Court on the issue of the compliance of the package of legislative acts adopted by the National Assembly and the relevant decisions of the government with the Constitution.

"The Armenian National Congress declares that the nationalization of "ESA" not only causes economic damage to the Republic of Armenia, but also undermines the fundamental principles of democracy, the rule of law and human rights. We demand the end of this illegal process and the restoration of justice," the statement says.

At the extraordinary session of the National Assembly of the Republic of Armenia on July 3, amendments were made in the second and final reading to the laws "On the Public Services Regulatory Authority", "On Energy", "On Bankruptcy" and "On State Registration of Legal Entities, State Registration of Separate Subdivisions, Institutions of Legal Entities and Individual Entrepreneurs", which practically begin the process of nationalization of CJSC "Electric Networks of Armenia". The package was developed by the ruling "Civil Contract"  faction in the country. According to the initiative, the authorized  body will receive the right to provide the chairman of the Public  Services Regulatory Commission with preventive measures in the event of problems in energy companies. In particular, the chairman of the PSRC will receive the right to initiate proceedings upon receiving a signal. During this period, the PSRC may change the management of the companies by inviting a temporary manager with at least 5 years of  experience in the energy sector or in the field of management. The temporary manager will work until the end of the investigation  period, following which the companies will either be offered an action plan to eliminate the violations, or will be deprived of their license. In the latter case, the company owners will have to sell them, and the government will retain a preferential right to purchase for 3 months. If the owners refuse to sell within 2 months, an auction for the sale of their shares may be scheduled administratively.

The package does not directly mention the Electric Networks of  Armenia company, although everyone understands that it is precisely them that are being discussed.

Earlier, the Tashir Group of Companies, which includes ESA CJSC, disseminated a statement according to which Samvel Karapetyan's family began an investment dispute with the Armenian authorities, which also includes an appeal to international arbitration.

The Tashir Group of Companies, headed by the arrested Samvel Karapetyan, acquired Electric Networks of Armenia CJSC from Inter RAO in September 2015. Earlier, Samvel Karapetyan noted that since 2016, when the Tashir Group of Companies acquired ownership rights to Electric Networks of Armenia, a total of about $900 million has been invested, $680 million of which was for modernization and $200 million for the creation of new capacities. The investments were made, among other things, at the expense of credit resources of international financial institutions, which led to the pledging of 100% of the shares of the CJSC.

ESA manages medium and low voltage distribution networks in Armenia, serving about 1 million subscribers.