Armenia could nationalise electric networks by October 2027

The Armenian government has moved forward with plans to nationalise electric networks by October 2027 by taking over 100% of the shares in Electric Networks of Armenia (ENA), Armenpress reports.

The report said the Ministry of Territorial Administration and Infrastructure drafted legislation to declare an overriding public interest in the company and acquire its shares with prior and adequate compensation.

In 2025, the Armenian government introduced emergency legislation to assume control of ENA, which is owned by Samvel Karapetyan's Tashir Group, accusing the electricity distributor of mismanagement. It subsequently announced plans to nationalise the company through eminent domain.

The draft government decision, prepared by the Ministry of Territorial Administration and Infrastructure, was published on September 9 on the Unified Website for Publication of Draft Legal Acts. Public consultations will remain open until September 24, after which the proposal will be submitted for consideration at a Cabinet meeting.

Under the draft, the Republic of Armenia would acquire the shares, while the Ministry of Territorial Administration and Infrastructure would serve as the authorised state body overseeing and coordinating the takeover.

The deadline for launching the property acquisition process has been set for May 1, 2027. The process must begin by July 1 and be completed by October 1, 2027.

The proposed takeover is intended to protect state and public security, safeguard consumers' rights and legitimate interests, ensure an uninterrupted electricity supply, maintain the normal operation of social and strategically important facilities, and provide affordable, predictable and equal access to energy.

According to the draft, the measure would guarantee a reliable and uninterrupted electricity supply for more than one million consumers across Armenia. It would also enable the state to exercise effective oversight of strategically important energy infrastructure.

The document describes ENA's current temporary administration as a preventive and interim measure that cannot serve as a substitute for stable, long-term control of the company's energy infrastructure. The proposed takeover is therefore intended to move ENA from temporary management to a permanent arrangement.

The draft states that the takeover would not cause unjustified losses to the company's owners because the shares would be acquired with prior and adequate compensation under the procedure established by Armenia's Law “On Expropriation of Property for the Purpose of Ensuring Overriding Public Interests.”

Once the decision takes effect, the Ministry of Territorial Administration and Infrastructure will have two months to prepare a record detailing the property subject to acquisition. The deadline may be extended once, for up to an additional two months.

Within three months of the record being approved, an assessment of the market value of the shares must be carried out.

Shareholders will also be entitled to submit, within the established timeframe, a valuation report prepared by an independent appraiser that is a legal entity registered in Armenia.

The record must contain details of the shares, including their type, associated rights and obligations, existing encumbrances, liabilities, guarantors and related risks. It must also cover ENA's accounting inventory, assumed rights and obligations, previous reorganisations and the history of ownership of the shares dating back to the company's privatisation.

Shareholders and beneficial owners of the shares will be able to participate in discussions concerning the record. Shareholders and individuals or entities holding registered property rights over the shares may challenge the record before the Ministry or in court within one month of receiving it.

Electric Networks of Armenia has 246,423 ordinary registered shares, each with a nominal value of 83,900 drams. The total nominal value of the shares is 20 billion 674 million 889 thousand 700 drams.

Tashir Capital CJSC holds 172,496 shares, equivalent to approximately 70% of the company, while Liormand Holdings Limited owns 73,927 shares, representing around 30%.

By Bakhtiyar Abbasov