International law expert Siranush Sahakyan stated that Armenia is not authorized to nullify an arbitral decision through domestic judicial processes.
Commenting on the ongoing developments surrounding the Electric Networks of Armenia company, she emphasized that arbitration tribunals are legitimate and effective platforms for dispute resolution, internationally recognized and comparable to national courts, according to Sputnik Armenia.
On July 23, the legal team of businessman Samvel Karapetyan announced that his family had won an urgent arbitration case against the Armenian government. In response, the government stressed the importance of adherence to both national law and international treaties regulating the recognition and enforcement of arbitration decisions.
“There are many cases where states intervene in the jurisdiction of arbitral tribunals, leading to human rights violations. The acceptance of arbitration authority is governed by international agreements, making it difficult to dismiss such rulings,” Sahakyan explained.
She also responded to Justice Minister Srbuhi Galyan’s claim that Karapetyan’s family could seek enforcement of the arbitration decision through Armenian courts, suggesting this approach hides a covert agenda.
“The state, unwilling to comply, is attempting to invalidate the arbitral decision through domestic court action, which is unacceptable and would violate international obligations,” she said.
Citing the rules of the Stockholm Chamber of Commerce, Sahakyan noted that parties agreeing to arbitrate under its rules are bound by all decisions, including urgent ones. Article 9.1 specifically mandates immediate compliance with such rulings. Domestic legal mechanisms concerning recognition of foreign arbitration awards do not exempt the state from this duty.
Sahakyan further warned that noncompliance could lead to new compensation claims and even asset freezes abroad. She pointed out that such cases have precedents at the European Court of Human Rights. Though the Stockholm ruling is interim, she stressed, it is binding.
“At this stage, the court has addressed urgent matters to prevent irreversible consequences. Ignoring the urgent arbitral award could undermine trust in the process and negatively affect the outcome,” she said.
She added that both decisions and awards may be issued under provisional measures, depending on format and content. In this case, the urgent arbitrator issued a ruling in the form of an award.
On July 3, the Armenian National Assembly passed amendments to laws on the Public Services Regulatory Commission and on energy, paving the way for the nationalization of the Electric Networks of Armenia (ENA).
Earlier, on June 18, just hours before Karapetyan’s arrest, Prime Minister Nikol Pashinyan announced the government’s intent to nationalize ENA and warned that employees not cooperating with the state would be dismissed. On June 24, he confirmed the nationalization plan was ready.
On July 18, the Public Services Regulatory Commission launched proceedings against ENA and appointed Romanos Petrosyan, former head of the State Oversight Service, as interim manager. Karapetyan had acquired the company in 2016 at the encouragement of the previous administration, investing hundreds of millions of dollars to modernize the system.
