Legislative changes aimed at nationalizing Electrical Networks of Armenia violate property and investor rights - lawyer
YEREVAN, July 2. /ARКА/. The legislative changes initiated by the Armenian authorities on Electrical Networks of Armenia (ENA) are unconstitutional and aimed at interfering with property rights, said lawyer Aram Vardevanyan, who represents the interests of ENA owner Samvel Karapetyan.
“This process also completely violates the foreign investment protection regime and damages Armenia’s international reputation,” Vardevanyan said at a press conference on Wednesday.
According to him, under these conditions, the arrest and criminal prosecution of a person is a violation of the law.
On the situation with Samvel Karapetyan
The owner of ENA, president of the Tashir Group Samvel Karapetyan has been under arrest since June 19 on charges of publicly calling for the seizure of power in Armenia. This happened after his meeting with Catholicos of All Armenians Garegin II and statements of support for the Armenian Apostolic Church amid attacks from the authorities.
Then RA Prime Minister Nikol Pashinyan announced his intention to nationalize Electrical Networks of Armenia, citing problems in the energy sector. According to him, it is necessary to "quickly and effectively" establish state management over the energy company.
To this end, a package of amendments to the laws "On the Public Services Regulatory Authority" and "On Energy" was submitted to parliament in a matter of days, providing for the initiation of administrative proceedings by the Public Services Regulatory Commission of Armenia against the operator in the energy sector.
It is envisaged to oblige the authorized government body to send a notice in the event of a particular risk of the activities of licensees in this area and determine the consequences of such a notice; determine the possibilities of applying preventive measures when initiating proceedings against licensees in the energy sector; establish the procedure and features of applying preventive measures.
The said bill was adopted by the National Assembly at an extraordinary session on July 2.
The other day, Samvel Karapetyan's family announced the start of an investment dispute against Armenia in connection with the violation of their rights as investors. The Karapetyans' claims are due to the campaign launched by the Prime Minister against Samvel Karapetyan and his business in Armenia.
About Electrical Networks of Armenia
Electrical Networks of Armenia CJSC is part of the Tashir Group of Companies, which is 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 of Companies has invested about $680 million in the modernization of Electrical Networks of Armenia alone, and another $150-200 million was invested in the creation of new capacities. By 2034, it is planned to increase the total volume of ENA investments in the energy system of Armenia to 540 billion drams.
