Lawyer comments on ENA arbitration order

In response to the emergency ruling issued by the Arbitration Institute of the Stockholm Chamber of Commerce concerning the Electric Networks of Armenia (ENA), constitutional law expert Gohar Meloyan, co-founder of the International Center on Development of Parliamentarianism, has called for the immediate suspension of ongoing legal and administrative actions related to the utility until a final award is rendered.

“When an international arbitration tribunal grants interim relief, it constitutes an early victory for the claimant,” Meloyan said in an interview with Panorama.am on Thursday. She emphasized that, under the tribunal's decision, the Karapetyan family, who own ENA, are currently considered the prevailing party, while the Armenian government is obliged to refrain from further measures that were challenged in the arbitration proceedings.

Meloyan criticized recent developments in the ENA nationalization process. “Laws were adopted in procedural violations, the company's director was dismissed unlawfully and a temporary replacement was appointed on the basis of controversial legislative amendments,” she said.

According to Meloyan, all such actions must now be suspended in accordance with the tribunal's order. She argued that former Deputy CEO David Ghazinyan should be reinstated and any enacted legislation lacking clear constitutional legitimacy should be suspended until the arbitration process concludes.

Speaking about the enforceability of international arbitration decisions, Meloyan noted that unlike domestic judicial systems, international arbitration lacks direct enforcement mechanisms. She explained that arbitration orders are effective because states voluntarily ratify conventions, join international bodies and sign treaties that lay out procedural obligations.

"When a state refuses to comply with a ruling, it risks international sanctions, reputational damage and erosion of investor confidence," the lawyer stressed.

She drew parallels with other international legal cases, including the blockade of Artsakh (Nagorno-Karabakh), where binding rulings against Azerbaijan were not enforced due to geopolitical biases and selective application of international norms. 

“Armenia’s failure to comply with such decisions would harm its own international standing, its citizens and long-standing efforts to build a favorable investment climate," the lawyer warned.

Describing the ENA arbitration as “highly politicized,” Meloyan expressed confidence in the Karapetyan family’s legal position. “They are handling the process professionally and have a strong legal foundation. Victory for the Karapetyans seems inevitable,” she stated.

Her remarks came after ENA owner Samvel Karapetyan, a prominent businessman and philanthropist currently held in pre-trial detention, secured a favorable interim measure in the arbitration case against the Armenian government.

"While respecting the security measures applied by foreign arbitration decisions, at the same time everyone is also obliged to adhere to Armenian law and international treaties that define the rules and procedures for the recognition and implementation of arbitration decisions," the government said in response.