Nationalization of Electric Networks of Armenia was politically compromised from the start, says economist (EXCLUSIVE)
YEREVAN, June 24. /ARKA/. The nationalization of the electricity distribution company Electric Networks of Armenia (ENA), which Prime Minister Nikol Pashinyan is seeking to implement, is doomed to failure from a political point of view from the start, economist Hrant Mikaelyan said in an exclusive interview with ARKA news agency on Tuesday.
Pashinyan had previously announced that the ENA nationalization plan was ready and would soon enter the practical stage, assuring that the process would be carried out in accordance with Armenian legislation.
"Everything will depend on the legal form in which it will be implemented. But at the moment, it seems that it is impossible to quickly, within a few days, make a decision and nationalize a large company. Especially considering the investments that have been made in this company. That is, from a legal point of view, this process will most likely be compromised, and from a political point of view, it is compromised from the very beginning,” Mikaelyan noted.
He recalled that after the owner of ENA, the billionaire of Armenian origin Samvel Karapetyan, who lives in Russia, announced his support for the Armenian Cchurch, Pashinyan announced the plan to nationalize the company.
Speaking about the investment climate, the expert noted that very little investment has been made in Armenia in recent years, and an outflow of capital has even begun, especially to Russia.
“This outflow will quickly accelerate. We have now accumulated from 3.5 to 4 billion dollars of Russian investments, as well as investments from Cyprus, which are also most likely of Russian origin. They will begin to “leak” from Armenia. The fact is that each business will then begin to “try on” the situation for itself. And if it believes that it may come under close scrutiny from the authorities and there is even the slightest risk that its assets will also be seized, then it will consider the possibility of evacuation (from Armenia),” Mikaelyan emphasized.
At the same time, he acknowledged that this is also part of the Armenian authorities’ plan, since large Russian businessmen will be the first to consider leaving the country.
“Perhaps then it will be possible, so to speak, to “resell” the assets at a lower price to Western or local investors, for example, those connected to the authorities,” Mikaelyan concluded.
Electric Networks of Armenia is part of the Tashir Group of Companies, owned by entrepreneur and philanthropist Samvel Karapetyan. ENA manages medium and low voltage distribution networks in Armenia, serving about 1 million subscribers. Since 2016, Tashir Group has invested about $680 million in the modernization of Electric Networks of Armenia alone, and another $150-200 million in the creation of new capacities.
On June 19, Karapetyan visited the Catholicos of All Armenians in Echmiadzin in connection with the attacks of the Armenian authorities on the senior clergy and expressed his support for the Patriarch. He noted that the current unacceptable situation will be resolved with the participation of politicians.
"If politicians fail, we will take part in this in our own way," Karapetyan said. After this, Armenian Prime Minister Nikol Pashinyan wrote several harsh posts on social networks addressed to Karapetyan. A few hours later, Karapetyan was detained by security forces in his mansion in Yerevan.
As part of the criminal case, he was charged with "public calls for the seizure of power." By the decision of the court, he was arrested for 2 months. Karapetyan's lawyers say their client does not admit the charges and have filed a motion to appeal the arrest. The lawyers are also preparing a complaint to the ECHR against Armenia.-0-
