Armenian Prime Minister Nikol Pashinyan expressed serious concerns over procurement practices at the Electric Networks of Armenia (ENA) during a working meeting on November 25 with the company’s temporary manager, Romanos Petrosyan. Pashinyan said that previous discussions had already highlighted systemic problems, including indications from the Ministry of Economy that procurement tenders were being dominated by interconnected companies linked to ENA’s ownership or management.

According to the PM, this pattern — where entities affiliated with ENA’s leadership reportedly create or control companies that consistently win tenders — undermines economic development and fair competition in Armenia. “The group of owners or the management group of ENA creates companies, either personally or through persons associated with them, which participate in and win the procurement process,” Pashinyan said, adding that such a system distorts the competitive environment.

Petrosyan echoed these concerns, saying the practice grants “privileged and monopolistic positions,” violating both Armenian law and the procedures of the Public Services Regulatory Commission (PSRC). He presented several examples of irregular procurement patterns.

Pashinyan characterized the alleged practices in stark legal terms. “These are very concrete facts, and lawyers call such phenomena ‘money laundering.’ What you are describing, if substantiated, is, in essence, difficult to call by any other name,” he said.

Beyond procurement issues, Pashinyan stressed that the core question facing ENA is its future strategic direction. He presented two options under consideration: full state ownership followed by the appointment of a professional external manager under government oversight, or attracting a new investor through transparent procedures if the financial burden of nationalization is too high.

“The best, preferred option for me is the first one — the nationalization of ENA,” he said, acknowledging the financial challenges associated with acquiring the company. He argued that long-term nationalization could reduce strategic risks, noting that difficulties with a concessionaire are easier to manage when the asset remains state property.

Pashinyan said the government must assess ENA’s objective market value — effectively the price for divestment — while considering all relevant factors. He noted that ENA’s past conduct, including actions that resulted in the justified revocation of its operating license, significantly affects the company’s valuation. “The license itself is a very significant part of that value,” he said.

The PM said the government will take time to analyze the information provided, consult with the PSRC and relevant ministries, and determine the most strategic course of action.