Arrest and Escalation
The Armenian government has initiated legal and administrative actions to “nationalize” Electric Networks of Armenia (ENA), shortly after the arrest of businessman, philanthropist and Tashir Group founder Samvel Karapetyan. The timing of these developments has drawn criticism from opposition parties, legal analysts, and international observers, who see a connection between Karapetyan’s public support for the Armenian Apostolic Church and the state’s subsequent moves against his assets and associates.
On June 17, Karapetyan publicly defended the Armenian Apostolic Church and criticized the government’s stance toward the clergy.
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In the days that followed, Nikol Pashinyan made several dismissive remarks about Karapetyan, reportedly describing him as a destabilizing force. Authorities also removed placards and public displays calling for Karapetyan’s release, further fueling concerns over the government’s efforts to suppress dissent. That same day, Nikol Pashinyan posted a statement on Facebook criticizing business leaders who interfere in political affairs. Later that evening, the National Security Service raided Karapetyan’s residence in Yerevan. He was arrested on June 18 and charged with inciting the seizure of power. On June 19, a court ordered him into two months of pre-trial detention.
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ENA Nationalization Plan Takes Shape
On June 24, the government announced finalized plans to “nationalize” ENA. On June 26, the Civil Contract party introduced a bill amending Armenia’s energy code. The bill allows the government to expropriate ENA with five days’ notice, citing threats to the national grid. On July 1, Parliament convened for an extraordinary session including the bill among 22 agenda items. On July 2, the bill passed its first reading with 65 votes in favor and 30 opposed. Opposition parties, including the Armenia Alliance and With Honor, voted against it and accused the government of using state authority to target political opponents.
Targeting ENA Employees
In Parliament, Pashinyan stated: “The ENA employees who cooperate with law enforcement will not be prosecuted. Very soon, ENA will become state property, and those employees who are now forcibly bringing people to protests will all be fired.” He added that those who showed “zeal in these illegal activities” would not be able to find work at Tashir Pizza. Critics interpreted these remarks as a warning to ENA staff not to oppose the nationalization effort or express support for Karapetyan.
Background on ENA and Tashir Group
The Tashir Group acquired ENA in 2015 from Inter RAO, a Russian state-owned utility, during a period of public unrest over electricity prices. The acquisition followed the Electric Yerevan protests and was seen by many as stabilizing. Under Karapetyan’s leadership, ENA expanded and modernized its network, serving nearly one million customers.
Legal and Investment Fallout
David Ghazinyan, ENA’s acting director and a constitutional law expert, criticized the expropriation bill as lacking legal clarity and procedural safeguards. He argued that the government bypassed proper review to avoid scrutiny. The bill includes no provisions for independent audit or judicial challenge. Legal analysts have raised concerns about whether the law meets international and domestic standards for due process.
Karapetyan’s legal team has appealed his detention. His family has also filed a formal investment dispute under the Armenia–Cyprus Bilateral Investment Treaty, which protects against arbitrary expropriation and guarantees fair and equitable treatment. If Armenia is found in breach of the treaty, it could face international arbitration and financial liability.
International and Religious Reaction
Russia’s Foreign Ministry has expressed concern over the arrest of Karapetyan, a Russian citizen, and is monitoring the situation. European legal organizations and human rights observers have questioned the timing and proportionality of the actions taken. International financial institutions such as the IMF, World Bank, and EBRD, which emphasize the rule of law and investor protections, may reevaluate cooperation with Armenia depending on how the situation unfolds.
The Armenian Apostolic Church has publicly criticized the arrest of Karapetyan and subsequent actions against clergy. Following his detention, senior clerics including Archbishop Bagrat Galstanyan and Archbishop Mikael Ajapahyan were detained or questioned. Catholicos Karekin II issued a formal statement condemning what he described as a pattern of intimidation toward the Church and its supporters.
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What Is at Stake
Observers argue that the sequence of legal and legislative measures raises serious questions about political neutrality, institutional checks and balances, and the future of property rights in Armenia. While the government has framed its actions as necessary for national infrastructure security, the opposition and several civil society actors have characterized them as politically motivated.
The outcome of this case will influence Armenia’s legal credibility, investment climate, and institutional independence. International attention continues to grow, and how Armenia responds will likely shape its domestic stability and external relationships in the months ahead.
