Armenia declares overriding public interest in 100% of Electric Networks of Armenia shares
Armenia’s government decided at its October 15 meeting to declare an overriding public interest in 100% of the shares of Electric Networks of Armenia CJSC (ENA). According to Prime Minister Nikol Pashinyan, the company is to become state property and its management will be handed over to a world top company or group of companies.
Presenting the issue, Minister of Territorial Administration and Infrastructure Davit Khudatyan said: “By decision of the Public Services Regulatory Commission (PSRC), the activity of ENA CJSC’s electricity distribution licence has already been terminated. After that, the ministry sent a letter to ENA’s shareholders offering to transfer 100 percent of the shares to the ownership of the Republic of Armenia. No reply was received within the period set by law, which is the same as ENA’s owners rejecting the government’s offer. After that, the procedure for recognising an overriding public interest began in the manner set out in Article 60 of the Constitution of Armenia. Public hearings have been held, and all actions have been taken in the manner prescribed by law.”
According to the draft decision, ENA’s 246.4 thousand shares have a total nominal value of AMD 20.7 billion (about $57.2 million at the average exchange rate for the first half of 2026), or AMD 83.9 thousand per share. Tashir Capital CJSC owns 70% of the shares, with the voting rights on them frozen, and Cyprus-based Liormand Holdings Limited owns 30%. The government made its offer to acquire the shares by agreement on February 17, 2026. ENA serves more than 1 million consumers.
According to the justification for the decision, Tashir Capital challenged the PSRC decision in the Administrative Court, but its claim was rejected on March 27, 2026. On April 18, the court upheld another claim by the company, giving Tashir Capital until May 25 to sell its 70% stake by agreement with the government, but it did not use this right within the three-month period. The court refused to accept a further claim by the company. In a ruling of March 12, 2026, the Constitutional Court found that temporary management under the law On Energy is a temporary restriction of property rights that does not undermine their essence. The justification states that temporary management is not a final solution for the long-term management of the system, and that the state budget may provide for spending on the compensation required by law for the expropriated shares.
Pashinyan said the decision was expected and predictable, as the process had been announced. “Although we expect the relevant Armenian bodies to also examine, in parallel, the privatisation of ENA and its legality. We also do not link the processes to each other, because one does not hinder or exclude the other. We will follow this path. We have reached our next milestone,” the prime minister said.
He asked about pricing: how and how much the owners should be paid. According to the minister, a valuation is carried out: “A notice on the resulting price is sent to ENA’s owners, who have the right to accept the proposed price or commission their own valuation. If ENA’s owners do not agree with the government’s offer and do not carry out a valuation themselves, the amount set by the first valuation is placed on deposit, and the transaction is completed.”
Under the draft, the expropriation process must begin by May 1, 2027, and implementation must start by July 1 and be completed by October 1, 2027. Within two months of the decision taking effect, the Ministry of Territorial Administration and Infrastructure must draw up an inventory of the property (the deadline may be extended once by up to two months), and then arrange a market valuation of the shares within three months. The valuation will also take into account liabilities and risks not reflected in the company’s financial statements. Within the same period, the owners may submit their own report by an independent appraiser resident in Armenia. The decision takes effect on the tenth day after its official publication.
Pashinyan said: “Our plan A is for it to become state property, and we hand over its management to a world top company or group of companies, meaning we have no intention of privatising it. However, if it turns out that we cannot implement this plan, we will then move on to discussing other plans. In the near future, this will be one of our most important topics.”
Half-year results and the preceding process
ENA’s profit in the first half of 2026 was AMD 9.56 billion (about $26.5 million), down 27.3% from the same period a year earlier (AMD 13.16 billion). The figures are from the company’s unaudited financial statements published by the Armenia Stock Exchange (AMX). Revenue rose 1.1% to AMD 98.8 billion, but electricity transmission service charges increased 13% to AMD 63.3 billion, while other income fell from AMD 8.1 billion to AMD 1.5 billion. Operating profit dropped 36% to AMD 11.5 billion. No dividends were paid in the half-year, compared with AMD 11.6 billion a year earlier.
The PSRC approved ENA’s 2026 investment budget of AMD 46.7 billion. It is part of an AMD 305.4 billion investment programme for 2024–2034.
On July 3, 2025, the National Assembly amended the laws On Energy and On the Public Services Regulatory Body concerning ENA. In September 2025, Moody’s downgraded the company from Ba2 to Ba3 with a negative outlook. On November 17, the PSRC stripped ENA of its electricity distribution licence. The decision cited, among other things, deletion of meter data for 2018–2024, falsification of readings, violations of investment programmes and risky loan guarantees in favour of related companies.
