United States law firm receives $3 million funding from Armenia to manage their legal disputes with Karapetyan

The Armenian government has taken a significant step in its legal battle against detained tycoon Samvel Karapetyan over the Electric Networks of Armenia (ENA). On Thursday, during a government meeting, an allocation of funds was made to US law firm Arnold & Porter to represent Armenia at the Stockholm Arbitration Court. The amount allocated is $3.25 million.

The decision to allocate funds for the law firm's services has sparked outrage online, with many criticizing Prime Minister Nikol Pashinyan's government handling of the ENA case. The allocation of funds, however, will only cover payment for the firm's services and will not include taxes, expert fees, arbitration proceedings costs, or translation and printing expenses.

The legal battle between the Armenian government and Karapetyan stems from two urgent arbitration rulings since July. The case was launched on 11 August by Karapetyan's family, who initiated the arbitration against Armenia over the 'expropriation' of the ENA, demanding compensation for caused and expected damages estimated at $500 million.

Karapetyan, a prominent businessman, is currently in detention on charges of making calls to overthrow the government. His defence team has called the Armenian government's actions against him and its takeover of the ENA a 'harassment campaign' against the tycoon and his 'business interests in Armenia'.

The Armenian Parliament adopted legislative amendments virtually allowing the state to take over the ENA on 3 July. Later that month, the Chair of the Public Services Regulatory Commission (PSRC), Mesrop Mesropyan appointed Romanos Petrosyan as temporary manager of the ENA.

The government praised Arnold & Porter's track record with arbitration cases, with a success rate of about 93% in cases related to the protection of state interests, particularly within the framework of investment arbitration proceedings. The law firm initiated by the Armenian government to represent Armenia in the legal dispute against tycoon Samvel Karapetyan regarding the Electric Networks of Armenia is "Weil, Gotshal & Manges LLP."

Prime Minister Pashinyan vowed to swiftly nationalize the ENA following Karapetyan's arrest in June. The Armenian state-run media Armenpress reported on the government's decision to allocate funds to Arnold & Porter. The Armenian government's actions have been met with mixed reactions, with some supporting the move to protect national interests, while others express concerns over the transparency and cost of the legal battle.