YEREVAN — Armenia may not comply with a decision by the Stockholm arbitration tribunal that blocks the Armenian government from proceeding with the nationalization of a major electricity provider owned by Russian-Armenian businessman Samvel Karapetyan, Justice Minister Srbuhi Galyan said on Thursday.
According to the minister, in disputes related to ENA, the bilateral investment treaty applies, and there is a clear procedure for recognizing arbitration decisions under this agreement.
“The party has the full right and legal opportunity to appeal to the Armenian national courts to have the arbitration decision recognized, and only then can it become subject to mandatory enforcement. Under domestic legislation, there is a possibility to reject enforcement of such a decision if it contradicts public order,” Galyan stated.
The minister noted that the appointment of a temporary administrator to ENA served a different purpose than what is described in the opposing party’s claim.
“The aim was to prevent a potential crisis that genuinely posed a threat to us,” the minister explained.
On Tuesday, the SCC ruled that Armenia must halt any efforts to implement the new legislation or confiscate the company, warning that such actions would impair the family’s ability to recover damages if they ultimately lose control of ENA. The ruling is legally binding on the Armenian government.
