Armenia’s opposition lawmakers have formally appealed to the Constitutional Court to halt the government’s move to nationalize the Electric Networks of Armenia (ENA), the country’s main power utility owned by jailed billionaire Samvel Karapetian. The legal petition underscores growing political tension over property rights and the rule of law in Armenia.
Background: Arrest and Allegations
The crisis erupted on June 18, when Prime Minister Nikol Pashinian vowed to nationalize ENA just hours after Karapetian was arrested in Yerevan. Karapetian, a vocal critic of Pashinian’s stance against the Armenian Apostolic Church, was accused by the government of engineering a “near energy crisis” to destabilize the administration. Pashinian’s government claims the utility’s alleged mismanagement was politically motivated.
Fast-Tracked Legislation
On July 2, the Armenian Parliament—dominated by Pashinian’s Civil Contract Party—rushed through legislation enabling the temporary takeover of ENA. The law grants the Public Services Regulatory Commission (PSRC), led by a close political ally of the Prime Minister, power to remove ENA’s license and force a sale within three months.
Constitutional Challenge
Opposition parties Hayastan and PUA argue the new law violates both Armenia’s Constitution and Civil Code, particularly by bypassing judicial oversight in license revocation. The appeal also cites violations of international legal obligations concerning due process and investor protections.
“This struggle is not just about property rights but also about building a democratic state in Armenia based on the rule of law,”— Artsvik Minasian, senior MP, Hayastan alliance.
The opposition has also requested the suspension of the law while the Court deliberates. Under Armenian law, the Constitutional Court must decide by August 3 whether the appeal warrants a full hearing.
Judicial Independence Under Scrutiny
Critics express skepticism about the court’s impartiality, noting that seven of its eight judges were appointed under Pashinian’s administration. Minasian acknowledged that the chances of a favorable ruling are “not high.”
Potential International Fallout
Karapetian’s family announced plans to launch an international lawsuit if the nationalization proceeds, seeking full compensation for the seizure of ENA—the billionaire’s largest asset in Armenia. The case could compound existing international arbitration claims already filed against Pashinian’s government by other foreign investors.
Expert Opinion:
The ENA dispute has become a flashpoint in Armenia’s internal political battle between populist executive power and institutional checks and balances. If the Constitutional Court upholds the government’s actions, the case may set a controversial precedent for property seizures in post-Soviet democracies and further dent Armenia’s business and investment climate.
