Stockholm Arbitration Court confirms binding force of decision on ENA

ArmInfo. The Arbitration Institute of the Stockholm Chamber of Commerce (SCC) confirmed the binding nature of the decision to ban the expropriation of the company Electric Networks of Armenia>, owned by businessman Samvel  Karapetyan. This is stated in the statement of the Samvel Karapetyan  Defense Council.

The day before, the press service of the RA government announced that  the emergency arbitrator rejected the new claims of the ENA  shareholders. "By the decision of August 3, 2020, the arbitrator  completely rejected the claim of the Plaintiffs due to the filing of  new claims compared to the original claim, as well as the fact that  his jurisdiction and authority do not extend to the requested interim  measures," the statement said.

Karapetyan's lawyers recalled that on July 22, 2025, the emergency  arbitration appointed by the Arbitration Institute of the Stockholm  Chamber of Commerce obliged the Armenian government to refrain from  applying the provisions of the recently adopted Laws "On Energy" and  "On the Public Utilities Regulatory Authority" to "Electric Grids",  as well as from further steps aimed at expropriating the company.

"Following the publication of the arbitration award, the state bodies  of the Republic of Armenia made a number of statements, noting that  the decisions of the emergency arbitration cannot be executed by the  government of the Republic of Armenia, and in order to be executed in  the territory of the Republic of Armenia, they must be recognized by  the courts of the Republic of Armenia. In addition, the Republic of  Armenia continued to take steps aimed at expropriating ENA. In  particular, the temporary manager of ENA dismissed and continues to  dismiss key employees and directors of the company's branches,  violating the decision of the emergency arbitrator," the statement  reads. In this regard, on July 29, 2025, Samvel Karapetyan and his  family again applied to the emergency arbitration court with a  request to amend the decision made on July 22 and provide the  Government of the Republic of Armenia with additional clarifications  that the latter is obliged to implement the arbitration award and  restore the status quo that existed on the date of the investors'  first appeal, as well as oblige it to submit a report on the measures  taken to implement the award.

On August 4, 2025, the Emergency Arbitration Tribunal decided not to  consider the need to amend the previously adopted decision,  reiterating that the decision it adopted on July 22 is already  subject to mandatory and immediate execution by the Government of the  Republic of Armenia>, the statement said.

On July 22, the Arbitration Tribunal in Stockholm ordered the  Government of Armenia to refrain from applying the amendments to the  laws On Energy and On the Public Services Regulatory Authority  recently adopted by the parliament, as well as from any further steps  aimed at seizing the assets of Electric Networks of Armenia. The  Tribunal concluded that urgent protective measures were necessary,  since the actions of the Republic of Armenia raise serious doubts  about compliance with the Agreement on Mutual Protection of  Investments between Armenia and Cyprus.

The head of the company's board of directors, Narek Karapetyan, in  turn, explained that the court thus prohibited the Armenian  government from confiscating or selling ESA assets, changing the  composition of the company's governing bodies, revoking licenses for  its activities, and in any way restricting the natural business  activity of Elseti.

However, the Armenian government, interpreting the decision of the  Arbitration Institute of the Stockholm Chamber of Commerce in its own  way, stated that the scope of the issues (dispute) considered in the  urgent case differs from the purposes of the decision to appoint a  temporary manager and the scope of actions that the latter must take.  While respecting the interim measures applied by foreign arbitration  decisions, at the same time everyone is obliged to be guided by the  legislation of the Republic of Armenia and international treaties  establishing the rules and procedures for the recognition and  enforcement of arbitration decisions>, the Armenian cabinet said in a  statement.

Acting Manager of ENA Romanos Petrosyan, in turn, noted that the  arbitration decision will gain legal force in Armenia only after the  relevant court decision and, since July 24, began to make personnel  changes in the management of "Elseti Armenia". The head of the RA  Ministry of Justice Srbuhi Galyan, in turn, noted that the decision  of the Arbitration Institute of the Stockholm Chamber of Commerce,  made in favor of Samvel Karapetyan in the arbitration against  Armenia, is not subject to mandatory execution if it contradicts  public order. She also assured that in the event of nationalization  of ENA, Samvel Karapetyan will receive compensation. 

In 2015, the Russian company "Inter RAO UES" decided to sell its  electric power assets in Armenia, including "ESA". The buyer was  Liormand Holdings Limited, which acquired 30% of the shares of  Electric Networks of Armenia, and the remaining 70% of the shares  were bought out by Tashir Capital.