The SCC Arbitration Institute, by a decision dated 16 June 2026, granted Armenia’s request to bifurcate the proceedings in the arbitration case of Liormand Holdings Limited and the Karapetyans v. Armenia, according to a press release issued by the Government of Armenia.

Armenia submitted objections to jurisdiction, arguing that the arbitral tribunal lacks jurisdiction over the dispute. The tribunal found sufficient grounds to treat Armenia’s jurisdictional objections as a separate preliminary phase of the proceedings.

One of Armenia’s key arguments is that the Karapetyans do not meet the definition of “investors” under the applicable international investment agreement and that they also allegedly breached Article 9(2) of that agreement.

This decision allows the SCC arbitral tribunal to address jurisdictional issues at an early stage of the proceedings and, if the objections are upheld, to dismiss all claims against Armenia in their entirety without proceeding to the merits phase.