If the Electric Networks of Armenia are Nationalized, Samvel Karapetyan Will Receive Compensation: Galyan

If the Electric Networks of Armenia (ENA) are nationalized or taken over by the state, Samvel Karapetyan will undoubtedly receive compensation. This was stated by Justice Minister Surbhi Galyan during an interview with Civilnet.

She emphasized that such processes can only be carried out legally through compensation. “If it comes to nationalization or transfer of ownership rights of any property on the grounds of public interest, it will certainly require compensation,” said Galyan.

According to her, even during the most acute political statements in Armenia, it has never been questioned that compensation would not be provided. “Not once, even in cases of sharp political statements, has it been said that compensation would not be given,” she noted.

Samvel Karapetyan has been managing the Electric Networks of Armenia since 2015, when his company, the Tashir Group, acquired it from the Russian Inter RAO.

The minister pointed out that the essence of investment disputes boils down to whether the state can cause harm to owners. However, according to her, the state’s aim is not to cause damage. “The state does not have the desire to inflict damage; on the contrary, the state wishes to mitigate losses, manage risks, prevent possible collapse, and avert sabotage. There should be no intention to harm the owner,” the minister added.

She mentioned that a decision made in an emergency arbitration case concerning ENA in favor of Samvel Karapetyan is not subject to mandatory enforcement if it contradicts public order. “Yes, the decisions made by arbitration are enforceable. This is the main regulation that should apply. But there is also the New York Convention, to which the Republic of Armenia is a party, which distinguishes emergency regime decisions as a means to secure claims from those that essentially resolve the arbitration case,” she said.

On July 22, the Stockholm Arbitration Court made an emergency ruling in favor of Samvel Karapetyan, who had filed a suit against the Armenian government. The emergency arbitration mandated the Armenian government to refrain from the implementation of specific provisions established by the recently adopted laws on “Energy” and “Public Services Regulation” concerning the Electric Networks of Armenia, as well as further steps toward confiscating ENA.

Galyan clarified that the New York Convention allows domestic courts to refuse enforcement of such decisions if they “contradict public order.” “We are dealing with the application of the law. What is that law about? Essentially, it ensures public order or at least derives from the principle of ensuring public order, and this may provide grounds for the decision not being enforceable,” she said.

According to the minister, the government cannot pre-determine whether domestic courts will recognize this decision as enforceable, but the legal procedure is clear: “In the case of voluntary non-compliance, the party may appeal to domestic courts to force the execution of that decision. And there are grounds, in terms of the convention, for that decision to also not be executed.”

Galyan emphasized that the current regulations do not concern the nationalization of the Electric Networks of Armenia.