Full nationalization of Karapetyan's Electric Networks of Armenia is best option - Pashinyan
YEREVAN. Nov 25 (Interfax) - Armenian Prime Minister Nikol Pashinyan considers the best option for CJSC Electric Networks of Armenia (ENA), which has had its power distribution license revoked, to be its full nationalization.
ENA is owned by Tashir Capital, which belongs to Russian businessman of Armenian origin Samvel Karapetyan, the president of the Tashir group of companies, who is under arrest in Yerevan. The Armenian Public Services Regulatory Commission (PSRC) revoked ENA's license for distributing electricity on November 17.
"There are two options. The first is the full nationalization of ENA, after which we will invite a professional manager who will run the company under the government's supervision. The second option: if it transpires that for some reason full nationalization is unaffordable due to financial costs, and is not justified by state funds, since we'll have to pay for it, then we'll need to bring in a new investor," Pashinyan said at a meeting with ENA interim manager Romanos Petrosyan on Tuesday.
To be honest, for me, the best, preferable option is the first one, the nationalization of ENA, but there is a financial aspect to it," he said.
Former ENA Director Davit Ghazinyan said at the PSRC hearing on November 17 that the case to revoke the license was "politically motivated" and "intended to put pressure on Samvel Karapetyan."
PSRC Chairman Mesrop Mesropyan told reporters following the hearing that the government would begin negotiations within the next three months with the ENA board of directors regarding the transfer of ownership rights to the property.
On June 18, a Yerevan court ordered Karapetyan's arrest on charges of publicly calling for the seizure of power. The entrepreneur's defense has appealed the decision, after which the arrest was again extended.
On July 3, the Armenian Parliament adopted amendments to the Law on the Public Services Regulatory Authority and Law on Energy, allowing for the nationalization of the PSRC.
On July 18, the PSRC appointed Romanos Petrosyan, who was dismissed from his position as head of the State Control Service by decision of the Armenian prime minister on July 17.
In September, the international ratings agency Moody's downgraded ENA's long-term corporate rating (CFR) from "Ba2" to "Ba3" and its probability of default rating (PDR) from "Ba2-PD" to "Ba3-PD." The outlook was changed from "stable" to "negative."
Moody's previously said that the ratings were placed on Rating Watch Negative following reports of plans to nationalize the company and that ENA's owner, Karapetyan, had been arrested.
