Hayakve initiative has addressed the current situation surrounding the Armenian Electricity Networks (ENA) and its possible repercussions on the investment climate. The initiative claims that ENA has already announced its intent to take the case to an international arbitration court and is “almost certain to win.”
“The seizure of ENA from its rightful owner will destroy our investment environment:
- Clearly, when people see how a company is expropriated unlawfully, no one will want to invest in Armenia anymore. And those who already have will begin withdrawing their investments.
- No matter how much the government wants to take over ENA through a changed law, it will be very difficult because the company is protected by international agreements.
Moreover, ENA has stated it will go to arbitration and is almost certain to win.
In addition, the system was purchased for a substantial price—about $220 million—and another $680 million has been invested. Who is supposed to compensate this amount? If it’s the state, then it comes out of our pockets.
If no compensation is given, we will face serious arbitration proceedings that will worsen Armenia’s economic conditions,” reads a statement released via Hayakve’s Telegram channel.
The publication emphasizes that any state-level attempts to seize ENA could provoke serious international disputes and damage Armenia’s economic credibility. It also notes that if the state opts to compensate investment losses, the burden will fall on taxpayers. Otherwise, Armenia risks being drawn into lengthy legal battles that, according to Hayakve, threaten the country’s economic stability.
The National Assembly recently passed a bill to nationalize ENA, transferring its management to the state, with the ruling party’s majority support.
