Armenia has adopted a decision to allocate $3.25 million to US law firm Arnold & Porter to represent Armenia at the Stockholm Arbitration Court in its legal battle against detained tycoon Samvel Karapetyan over the Electric Networks of Armenia (ENA).
The decision was adopted on Thursday, during a government meeting
In its coverage, Armenian state-run media Armenpress cited the government’s decision, which praised the firm’s track record with arbitration cases. The government also noted that its success rate amounts to about 93% in cases related to the protection of state interests, ‘particularly within the framework of investment arbitration proceedings’.
The allocated funds would solely cover payment for the firm’s services, and would not include taxes, expert fees, arbitration proceedings costs, or translation and printing expenses, Armenpress reported.
The allocation of the funds sparked outrage online, with many on social media criticising Prime Minister Nikol Pashinyan’s government handling of the ENA case.
The arbitration case against Armenia was launched on 11 August, by Karapetyan’s family.
Karapetyan is currently in detention on charges of making calls to overthrow the government. His Tashir Group manages the ENA, which Pashinyan vowed to ‘swiftly’ nationalise following Karapetyan’s arrest in June.
Weeks later, on 3 July, the Armenian Parliament adopted legislative amendments virtually allowing the state to take over the electricity company. Later that month, the Chair of the Public Services Regulatory Commission (PSRC), Mesrop Mesropyan appointed Romanos Petrosyan, a prominent member of the ruling Civil Contract party’s board, as temporary manager of the ENA.
On 12 August, Karapetyan’s lawyers noted in their statement that the initiated arbitration against Armenia was over the ‘expropriation’ of the ENA, demanding compensation for caused and expected damages estimated at $500 million.
The case was launched following two urgent arbitration rulings since July regarding the ENA.
Karapetyan’s defence team has called the Armenian government’s actions against Karapetyan and its takeover of the ENA a ‘harassment campaign’ against the tycoon and his ‘business interests in Armenia’.
Arshaluys Barseghyan
