YEREVAN — The Armenian government has drafted a decision declaring 100 percent of the shares of Electric Networks of Armenia (ENA) to be subject to acquisition in the overriding public interest, paving the way for the company’s nationalization. The proposal follows the termination of ENA’s license and the shareholders’ failure to respond to a government offer to acquire the company’s shares. The draft decision was published on September 9 on Armenia’s unified portal for draft legal acts.
According to the explanatory note, the Public Services Regulatory Commission terminated ENA’s electricity distribution license on November 17, 2025. On February 17, 2026, the government submitted an offer to the shareholders to transfer their shares through an agreed procedure, but no response was received within the established deadline.
Under the proposal, the Republic of Armenia would acquire the shares, while the Ministry of Territorial Administration and Infrastructure would oversee the process. The deadline for initiating the acquisition procedure would be May 1, 2027, with the actual transfer of ownership planned between July 1 and October 1, 2027.
The government says the measure is necessary to protect national security, ensure uninterrupted electricity supplies to more than one million consumers, and establish stable state control over strategic infrastructure. According to the justification, the temporary management mechanism currently in place cannot substitute for long-term ownership and control.
The acquisition would be carried out with prior and equivalent compensation. Within two months of the decision taking effect, the ministry would prepare an official inventory of the property. A market valuation of the shares would then be conducted within three months. Shareholders would also have the right to submit an independent valuation report or challenge the inventory through the courts.
According to the list attached to the proposal, ENA has 246,423 ordinary registered shares with a total nominal value of 20.675 billion drams. Tashir Capital owns 69.99 percent, or 172,496 shares, whose voting rights are listed as suspended, while Cyprus-registered Liormand Holdings Limited owns the remaining 30 percent, or 73,927 shares.
