The arbitration proceedings regarding the expropriation of the HEC shall be exclusively procedural

The lawyer team of “Liormand Holdings Limited” company, a shareholder of HETC, issued a statement.

“Arbitration proceedings regarding the alienation of “Electrical Networks of Armenia” proceed to the consideration of Armenia’s jurisdictional objections

On June 16, 2026, the arbitration panel examining the investment dispute regarding the expropriation of HEC made a procedural decision to divide the proceedings into two separate stages.

In the first stage, the arbitration will examine the jurisdictional objections submitted by the Armenian government. After this stage, the arbitration will proceed to the discussion of the merits of the dispute, including the legality of the state’s actions and the responsibility for the expropriation of the investments.

Dividing proceedings into stages is a common phenomenon in international investment disputes that raise a large number of disputed issues. At the same time, the adopted decision is exclusively procedural in nature and does not indicate that the arbitration recognized Armenia’s arguments as justified or subject to satisfaction.

On the contrary, in its decision dated June 16, 2026, the arbitrators expressly stated that, for the purposes of this award, the arbitral panel was not required to rule on the merits of said objections, moreover, if it did so, the arbitral panel would be subject to reasonable criticism for allegedly proceeding with an unfair and premature assessment of the merits of those objections.
Thus, the question of the validity of the objections of the Armenian government regarding jurisdiction remains open and will be a subject of separate discussion. The decision to divide the proceedings does not predetermine the outcome of the given stage and cannot be considered as confirmation of the state’s legal position.

Moreover, the division of proceedings initiated at the request of the Government of Armenia may lead to a significant increase in the duration and cost of the arbitration proceedings. In the event that the arbitration rejects all jurisdictional objections and essentially satisfies the investor’s claims, the additional costs due to the two-stage discussion of the case may be imposed on Armenia.

Investors continue to pursue full protection of their rights in international arbitration and are confident in the validity of the claims made in connection with their confiscated/dispossessed investments.

The security measures established in July of last year and prohibiting any actions aimed at the alienation of the HEC to Armenia continue to be in force. Accordingly, any new illegal action by the Armenian government against HEC and its shareholders, including the nationalization of the company, will violate these measures and trigger Armenia’s international legal responsibility.

HETC shareholder of “Liormand Holdings Limited” company
legal team”

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