In case of nationalization of ENA, Samvel Karapetyan will receive compensation - Minister of Justice

YEREVAN, July 29. /ARKA?. In case of nationalization of CJSC "Electric Networks of Armenia", Samvel Karapetyan will definitely be provided with compensation. This was stated by Minister of Justice Srbuhi Galyan in an interview with CivilNet, emphasizing that such processes can only be carried out by law through compensation.

A few days ago, the company "Electric Networks of Armenia", owned by the president of "Tashir Group" Samvel Karapetyan, came under the management of Romanos Petrosyan, who was appointed on July 18 as the interim state manager of the energy company.

"Never, even in the harshest political statements, was there talk about the fact that compensation will not be provided," Galyan said.

The minister emphasized that the essence of the investment dispute comes down to the question of whether the state can harm the owners. However, the state's goal is not to cause harm.

"If the state says that it wants to reduce damage, manage risks, prevent a possible collapse, prevent sabotage, then there can be no intention to harm the owner," Galyan said.

According to the minister, the decision made in favor of Samvel Karapetyan in the international urgent arbitration against Armenia in the ENA case is not subject to mandatory execution if it is contrary to public order.

"Arbitration awards are, yes, subject to execution. This is the main regulation that must be in effect. But there is also the New York Convention, to which the Republic of Armenia has acceded, which distinguishes arbitration awards made urgently as a means of securing a claim from arbitration awards that essentially resolve the case," she noted.

Galyan explained that the New York Convention allows national courts to refuse to enforce such a decision if it "is contrary to public order."

According to the Minister, the government cannot determine in advance whether the national courts will recognize this decision as enforceable, but the legal procedure is clear.

“In case of voluntary non-enforcement of the decision, the party may apply to the national court with a request for its enforcement. In addition, there is a basis provided for by the Convention, according to which this decision may also not be enforced,” the Minister said.

Galyan emphasized that the current regulations do not provide for the nationalization of the ENA.

“I can emphasize one thing: the applicable regulations have nothing to do with nationalization, at least at this stage,” she said.

She added that provisions on nationalization have long been included in the legislative system of Armenia.

“The Civil Code provides for the possibility of nationalization, and the Constitution provides for the possibility of limiting property rights. Limitation of property rights is possible only in a compensatory manner,” Galyan said.

Karapetyan was arrested in June on accusations of calling for a power seizure after he publicly supported the Armenian Apostolic Church in its conflict with Prime Minister Nikol Pashinyan’s administration. Following the arrest, Pashinyan declared it was time to nationalize Karapetyan’s company, Electric Netwroks of Armenia, and the Armenian parliament passed laws allowing the state to seize it.

In response, the Karapetyan family filed a lawsuit at the Arbitration Institute of the Stockholm Chamber of Commerce (SCC), citing a 1995 bilateral investment treaty between Armenia and Cyprus.

The SCC ruled that Armenia must halt any efforts to enforce the new legislation or confiscate the company, warning that such actions would hinder the family’s ability to recover damages if they lose control.-0-