EU energy diversification project unrelated to electric utility reforms, says PM

EU efforts to help Armenia diversify its energy sources are unrelated to the ongoing reforms in ENA, the Armenian electric utility, which is currently undergoing management changes, Prime Minister Nikol Pashinyan has said.

European Commissioner for Enlargement Marta Kos earlier said that the EU will invest 500 million euros to strengthen Armenia’s energy security and diversification.

She highlighted the 500-million-euro Caucasus Transmission Network project, signed in Uzbekistan, as a key initiative for enhancing energy security and diversification. 

“So, it is a 500 million investment to connect your power grid with the Georgian one and we are already working on the power grid of Armenia and Türkiye,” Kos said.

Speaking at a press conference on Thursday, Pashinyan was asked whether these are related processes.

He denied any link between the EU project and the developments around the management and ownership of the ENA.

According to the Prime Minister, the statement by the EU Commissioner specifically refers to a joint project with the European Union to build a transformation station that will regulate certain issues related to the export and import of electricity between Armenia and Georgia.

Electric Networks of Armenia (ENA), the country's electricity distributor, is owned by Tashir Group of Companies, which belongs to Samvel Karapetyan, the Russian-Armenian business magnate who is currently jailed on charges of calling for a coup, which he denies. 

The government had earlier appointed a temporary executive at ENA through emergency legislation, citing the company’s inability to fulfill its obligations and mismanagement.

ENA has denied the accusations.

A regulatory body recently revoked ENA’s license. The head of the regulatory body said that negotiations will be held over the next three months with the company’s board of directors regarding the transfer of ownership rights.

Pashinyan said the government is considering two options: first, bringing ENA into state ownership through established legal procedures, after which a professional manager in the sector would be invited to operate it; and second, attracting a new investor through a transparent procedure if the first option is deemed too expensive after the company’s value is calculated.