Pashinian pledged to “quickly” nationalize the company, Electric Networks of Armenia (ENA), on June 18 hours after Karapetian was arrested in Yerevan following his strong criticism of Pashinian’s campaign against the Armenian Apostolic Church. He accused the company of creating a “near energy crisis” in Armenia with the possible aim of increasing public discontent with his government.
Armenian opposition leaders and other government critics countered that Pashinian is simply keen to punish Karapetian. They warned that ENA’s nationalization would be illegal and deal a serious blow to Armenia’s business reputation.
The Armenian parliament controlled by the ruling Civil Contract party hastily approved on July 2 a government bill empowering the authorities to “temporarily” take over ENA’s management before forcing the company’s owner to sell it within three months. Such action will have to be approved by the Public Services Regulatory Commission (PSRC), the country’s energy regulator headed by a political ally of Pashinian.
In their appeal to the Constitutional Court announced on Monday, the two opposition groups represented in the National Assembly demanded that the bill be declared unconstitutional. They said, in particular, that it enables the government to seize ENA in a way that is not allowed Armenia’s constitution and Civil Code. They also objected to a provision allowing the PSRC to strip ENA of its operating license without a court ruling.
“We also noted a number of violations of international law, including Armenia's international obligations,” said Artsvik Minasian, a senior lawmaker from the opposition Hayastan alliance. “This struggle is not just about property rights but also about building a democratic state in Armenia based on the rule of law.”
In Minasian’s words, the parliamentary opposition also asked the Constitutional Court to suspend the law pending its ruling on the appeal. Under Armenian law, the court has to decide by August 3 whether to consider the appeal or reject it out of hand.
Seven of its eight judges have been handpicked and installed by Pashinian’s political team. Minasian said the likelihood of a court ruling sought by the opposition is therefore “not high.”
Karapetian and his family warned on June 30 that they will file an international lawsuit against the government if it does “expropriate” ENA. They said they would seek “full compensation” for the loss of the tycoon’s biggest asset in Armenia.
Pashinian’s government is already facing massive lawsuits by a number of foreign investors who have done business in Armenia.