Businessman and philanthropist Samvel Karapetyan, along with members of his family, has formally notified Armenian authorities of an impending investment dispute. The notification, according to a statement from the Tashir Group, is based on the 1995 bilateral agreement between Armenia and Cyprus on the promotion and protection of investments.

The treaty provides investors the right to seek international arbitration in cases where state actions violate their rights—moves that can negatively affect a country’s investment appeal.

According to the Karapetyan family, the dispute arose following actions taken by Prime Minister Nikol Pashinyan targeting Karapetyan and his businesses.

Earlier in June 2025, Pashinyan accused the Catholicos of All Armenians of moral misconduct and demanded his resignation. A longtime supporter of the Armenian Apostolic Church, Karapetyan publicly defended the Church in an interview.

In response, Pashinyan issued several public threats against Karapetyan via Facebook. On June 17, police raided Karapetyan’s residence, arresting him and charging him with publicly inciting the seizure of power. On June 18, a Yerevan court ordered his two-month pretrial detention.

That same day, Pashinyan announced the nationalization of Electric Networks of Armenia (ENA), owned through Cyprus-based Liormand Holdings Limited—a company tied to the Karapetyans.

Following the announcement, the government swiftly moved to assert control over ENA. New draft laws enabling state seizure of ENA were introduced in Parliament, and an emergency session was scheduled for July 1, 2025, at Pashinyan’s request.

The investment dispute notification, issued as a warning, alleges that Armenian officials’ actions are arbitrary, discriminatory, and politically motivated—aimed at stripping the Karapetyans of ENA ownership. The family claims this violates several obligations under the Armenia-Cyprus treaty.

First, the state failed to ensure fair treatment and full protection of the family’s investments. Second, Armenian authorities are attempting to assert control over ENA in violation of the treaty, amounting to unlawful expropriation.

If these violations continue, Armenia may face international arbitration and be required to provide full compensation.

Currently, Armenia is already facing arbitration claims from investors in Cyprus, the U.S., Canada, and Lebanon, due to alleged illegal actions that undermine foreign investors’ legal rights, the statement added.

Constitutional expert Gohar Meloyan wrote on Facebook that the draft law enabling ENA’s nationalization contradicts Article 60 of Armenia’s Constitution.

An emergency session of Parliament is set for July 1, where the government plans to pass the nationalization law.

The legislation would allow the appointment of a temporary manager to replace ENA’s director and strip its shareholders and board of their powers—an act Meloyan says amounts to expropriation without constitutional safeguards.

“If adopted, it would mean a single state official appoints a manager who assumes all powers of a private company’s executive, sidelining its board and shareholders,” Meloyan wrote. “This is a direct violation of constitutional protections against unlawful seizure of property.”

Prime Minister Pashinyan insists the plan is ready. He earlier claimed ENA’s soon-to-be former owners used the Church as cover and accused the company of nearly triggering an energy crisis.

On June 18, the Public Services Regulatory Commission fined ENA 10 million drams.