Stockholm Arbitration Confirms Mandatory Nature of Decision Against HEC Seizure

On August 4, 2025, the urgent arbitration ruled that there was no need to consider the necessity of supplementing its earlier decision, once again stating that the decision made on July 22 is already subject to mandatory and immediate enforcement by the Government of the Republic of Armenia.

On July 22, 2025, the urgent arbitration appointed by the Arbitration Institute of the Stockholm Chamber of Commerce mandated the Government of Armenia to refrain from implementing provisions stipulated by the recently adopted laws on “Energy” and “Regulation of Public Services” in relation to the Closed Joint Stock Company “Armenian Electric Networks”, as well as from any further actions aimed at the seizure of “Armenian Electric Networks” CJSC.

After the publication of the arbitration decision, Armenian state bodies made several statements indicating that the decisions of the urgent arbitration may not be executed by the government and that they must first be recognized by the courts of the Republic of Armenia for execution within the territory.

Moreover, the Republic of Armenia continued its actions towards the seizure of HEC. Specifically, the temporary administrator of HEC has been dismissing and continues to dismiss key employees and branch directors of the company, violating the decision of the urgent arbitration.

In this regard, on July 29, 2025, Samvel Karapetyan and his family again appealed to the urgent arbitration, requesting a clarification of the decision made on July 22 and additional clarification to the Government of Armenia that it is obliged to comply with the arbitration decision and restore the status quo that existed as of the date of the initial request of the investors, as well as to provide a report on the measures taken to implement the decision.

It is noteworthy that the emergency arbitrator had rejected the new demands from HEC shareholders.