Armenian Government Declares Overriding Public Interest in 100% of ENA Shares
15.10.2026,
14:41
During its session on Thursday, the Government of Armenia decided to declare an "overriding public interest" regarding 100% of the shares of the closed joint-stock company "Electric Networks of Armenia" (ENA).
YEREVAN, October 15. /ARKA/. During its session on Thursday, the Government of Armenia decided to declare an "overriding public interest" regarding 100% of the shares of the closed joint-stock company "Electric Networks of Armenia" (ENA).
David Khudatyan, Armenia’s Minister of Territorial Administration and Infrastructure, noted that the Public Services Regulatory Commission (PSRC) had revoked ENA’s electricity distribution license, effective November 17, 2025.
Following this, the Ministry sent a written proposal to the company’s shareholders to transfer 100% of the shares to the ownership of the Republic of Armenia.
According to Khudatyan, the owners of ENA did not accept the government’s proposal within the legally stipulated timeframe. Consequently, in accordance with Article 60 of the Constitution of Armenia, the procedure for declaring an overriding public interest was initiated.
The Minister reported that public hearings were held as part of this procedure, and all legally required steps were completed within the established deadlines.
Prime Minister Nikol Pashinyan described the decision as predictable and expected, noting that the commencement of this process had been announced previously.
He further stated that the authorities expect the relevant Armenian competent bodies to examine the privatization process of ENA and its legality.
"I have a strong impression that ENA’s poor performance was used to fuel political discontent in Armenia," Pashinyan stated.
The Prime Minister emphasized that these processes are separate and do not interfere with one another. Regarding the Valuation of ENA Shares and Compensation
Pashinyan noted that one of the key issues concerning the future divestment of shares is determining their value, as the state is required to pay compensation to the owners.
Khudatyan stated that a specific figure has not yet been determined; this will require a valuation conducted by a licensed firm.
According to the minister, the valuation will take into account the company’s investments and any dividends distributed during the relevant period.
Once the value is determined, the owners of ENA will be notified of the price proposed by the government. Shareholders may either accept this offer or commission their own valuation from another firm licensed in Armenia.
If a second valuation is conducted, the results will be compared, and a final offer will then be formulated.
As Khudatyan explained, if the owners disagree with the government’s proposed price but fail to conduct their own valuation, the amount determined by the initial valuation will be deposited into a depository account. The minister noted that, at that point, the transaction would effectively be considered complete.
Regarding Subsequent Procedures
Deputy Prime Minister Mher Grigoryan stated that the adopted decision mandates the preparation of a comprehensive description of the assets within a two-month period.
He added that this document must identify all documented risks. Grigoryan also suggested that it might be appropriate to include details regarding the circumstances of ENA’s original privatization, ensuring that any potential acquirer fully understands the nature of the assets they are purchasing.
According to a draft government decision previously released by the Armenian Ministry of Territorial Administration and Infrastructure, the process for the divestment of shares is scheduled to begin by May 1, 2027, with the implementation phase starting on July 1, 2027, and the entire process concluding by October 1, 2027. Romanos Petrosyan, the interim manager of ENA, noted that the recognition of an overriding public interest does not signify the completion of the company’s nationalization process.
"This decision marks the culmination of the overall process, which will be followed by a series of mandatory technical and institutional procedures. Once the company is registered with the state registry and the depository, and 100% of its shares are formally established as state property, the necessary legal grounds will be in place to transfer the management of the company to international energy corporations," he emphasized.
Previously, Petrosyan reported that five international energy corporations had expressed interest in managing ENA under a concession agreement.
David Khudatyan, Armenia’s Minister of Territorial Administration and Infrastructure, noted that the Public Services Regulatory Commission (PSRC) had revoked ENA’s electricity distribution license, effective November 17, 2025.
Following this, the Ministry sent a written proposal to the company’s shareholders to transfer 100% of the shares to the ownership of the Republic of Armenia.
According to Khudatyan, the owners of ENA did not accept the government’s proposal within the legally stipulated timeframe. Consequently, in accordance with Article 60 of the Constitution of Armenia, the procedure for declaring an overriding public interest was initiated.
The Minister reported that public hearings were held as part of this procedure, and all legally required steps were completed within the established deadlines.
Prime Minister Nikol Pashinyan described the decision as predictable and expected, noting that the commencement of this process had been announced previously.
He further stated that the authorities expect the relevant Armenian competent bodies to examine the privatization process of ENA and its legality.
"I have a strong impression that ENA’s poor performance was used to fuel political discontent in Armenia," Pashinyan stated.
The Prime Minister emphasized that these processes are separate and do not interfere with one another. Regarding the Valuation of ENA Shares and Compensation
Pashinyan noted that one of the key issues concerning the future divestment of shares is determining their value, as the state is required to pay compensation to the owners.
Khudatyan stated that a specific figure has not yet been determined; this will require a valuation conducted by a licensed firm.
According to the minister, the valuation will take into account the company’s investments and any dividends distributed during the relevant period.
Once the value is determined, the owners of ENA will be notified of the price proposed by the government. Shareholders may either accept this offer or commission their own valuation from another firm licensed in Armenia.
If a second valuation is conducted, the results will be compared, and a final offer will then be formulated.
As Khudatyan explained, if the owners disagree with the government’s proposed price but fail to conduct their own valuation, the amount determined by the initial valuation will be deposited into a depository account. The minister noted that, at that point, the transaction would effectively be considered complete.
Regarding Subsequent Procedures
Deputy Prime Minister Mher Grigoryan stated that the adopted decision mandates the preparation of a comprehensive description of the assets within a two-month period.
He added that this document must identify all documented risks. Grigoryan also suggested that it might be appropriate to include details regarding the circumstances of ENA’s original privatization, ensuring that any potential acquirer fully understands the nature of the assets they are purchasing.
According to a draft government decision previously released by the Armenian Ministry of Territorial Administration and Infrastructure, the process for the divestment of shares is scheduled to begin by May 1, 2027, with the implementation phase starting on July 1, 2027, and the entire process concluding by October 1, 2027. Romanos Petrosyan, the interim manager of ENA, noted that the recognition of an overriding public interest does not signify the completion of the company’s nationalization process.
"This decision marks the culmination of the overall process, which will be followed by a series of mandatory technical and institutional procedures. Once the company is registered with the state registry and the depository, and 100% of its shares are formally established as state property, the necessary legal grounds will be in place to transfer the management of the company to international energy corporations," he emphasized.
Previously, Petrosyan reported that five international energy corporations had expressed interest in managing ENA under a concession agreement.
