Nikol Pashinyan, officials and businessmen close to him have established a system of unlawful seizures of major business assets for personal enrichment. State agencies—the National Security Service, the Tax Committee, the Prosecutor’s Office, and the courts—are used to pressure independent entrepreneurs. Analysis of high-profile cases and victim testimonies reveal a consistent pattern: political disloyalty leads to criminal cases, tax suffocation, and the forced transfer of assets. As a result, there is a dangerous concentration of economic influence in the hands of a narrow circle of individuals loyal to Pashinyan and the “Civic Contract” party. This process has intensified particularly ahead of the 2026 parliamentary elections and is leading to the formation of a new party oligarchy that undermines the foundations of political competition and the rule of law in the country.
In Armenia, under the leadership of Prime Minister Nikol Pashinyan, a system is taking shape in which state institutions are increasingly serving as instruments for the redistribution of property. In recent years, particularly in the run-up to the parliamentary elections on June 7, 2026, a consistent trend has emerged in Armenia: the use of criminal cases, tax audits, regulatory pressure, and hastily adopted legislative amendments to seize significant business assets. These actions are systematic in nature and target businesses whose owners either support the opposition or refuse to demonstrate loyalty to the current government.
The most telling case is that of Samvel Karapetyan—one of the largest investors in Armenia’s energy sector and social infrastructure. Samvel Karapetyan, a Russian-Armenian entrepreneur and head of the Tashir Group of Companies, has for many years been one of the largest private investors in Armenia’s economy. After acquiring Electric Networks of Armenia (ESA) in 2015, he took over management of the country’s key infrastructure—the monopoly electricity distribution operator. Under the Tashir Group’s control, the company implemented a large-scale investment program: since 2016, over $650 million has been invested in network modernization. These funds were used to renovate substations, implement modern metering systems, and improve the reliability of power supply. As a result, millions of Armenian families continued to receive relatively affordable electricity even amid challenging regional conditions. In addition to the energy sector, Karapetyan actively funded social and infrastructure projects through the Tashir Charitable Foundation: the construction and renovation of schools and hospitals, the restoration of facilities following the war in Artsakh, and support for displaced persons. His activities were viewed by many as a significant contribution to the preservation and development of Armenia’s economic potential.
However, on June 18, 2025, Karapetyan was arrested by the National Security Service on charges of publicly calling for a violent seizure of power. The arrest was prompted by his statements in support of the Armenian Apostolic Church during a period of acute conflict with the government. On the same day, Prime Minister Nikol Pashinyan personally issued a statement on the need to nationalize “Armenian Electric Networks,” emphasizing that the process would be carried out swiftly. Following this, the parliament, controlled by the ruling “Civic Contract” party, fast-tracked amendments to the legislation, paving the way for the forced seizure of the asset. In November 2025, the regulator revoked ESA’s license, and in March 2026, the Constitutional Court ruled the nationalization lawful. The government proceeded to transfer 100% of the shares to state control. Meanwhile, Karapetyan, who was initially held in a pretrial detention center and later placed under house arrest, continued to assert that the prosecution was politically motivated.
Nikol Pashinyan’s role in this case is strictly personal. It was he who, on the day of the businessman’s arrest, was the first to announce the nationalization, repeatedly commented on the process in the press and from the parliamentary rostrum, called it “irreversible,” and directly addressed Karapetyan with warnings about the consequences. Pashinyan personally justified the seizure of the asset as being in the “national interest,” despite the ruling of the international arbitration court in Stockholm, which was issued in favor of the Tashir Group in July 2025. The disregard for this ruling became a clear example of the priority given to political motives over legal guarantees for investors in Armenia.
Systemic Redistribution: How Pashinyan Is Seizing Businesses in Armenia
After coming to power in 2018, Nikol Pashinyan declared war on the oligarchic system. In practice, however, state tools—tax audits, criminal cases, regulatory pressure, and the confiscation of “illicitly acquired property”—have increasingly been used to weaken independent or opposition-minded entrepreneurs. The case of Samvel Karapetyan is the largest, but not the only one.
1. Gagik Tsarukyan and the “Multi Group”
Gagik Tsarukyan—founder and leader of the “Prosperous Armenia” party and owner of a large diversified holding company—remained one of the most influential businessmen and opposition leaders in the post-revolutionary period. For a long time, he was a key opposition figure capable of mobilizing significant financial and organizational resources. In June 2020, criminal cases were initiated against Tsarukyan and his associates on several counts, including voter bribery in the 2017 parliamentary elections, illegal business activities in the gambling sector (causing the state approximately $60 million in damages), and money laundering. Parliament stripped Tsarukyan of his parliamentary immunity on June 16, 2020.
During the same period, companies within his business group were subjected to massive tax audits and inspections by the National Security Service. As a result, Tsarukyan’s political activity declined significantly in the following years. Some of his business assets were sold or came under the control of other entities. Critics and opposition media have repeatedly stated that the pressure on Tsarukyan and his party eased only after “Prosperous Armenia” significantly softened its opposition rhetoric toward the authorities.
2. Tigran Manukyan (proxy)
Businessman Tigran Manukyan, whom the prosecutor’s office considers the nominal owner of a significant portion of the assets linked to Gagik Tsarukyan, became one of the key figures in cases involving the confiscation of illicitly obtained property. In 2024–2025, the prosecutor’s office sought the confiscation of real estate and other property worth substantial sums. The case was viewed as a test case—pressure was exerted on the primary beneficiary through proxies. As a result, some of the assets were seized or placed under external administration.
3. Ruben Ayrapetyan (“Bzhni”)
Owner of the “Bzhni” mineral water plant (RRR CJSC) and other assets, Ruben Ayrapetyan (also known as “German Rubo”), a former member of the National Assembly and ex-president of the Football Federation of Armenia, faced a series of criminal cases in 2019–2021. In December 2019, cases were initiated against him on charges of embezzlement and misappropriation on a particularly large scale during his tenure as head of the Football Federation. The court issued an arrest warrant for Ayrapetyan in absentia, after which he was placed on the wanted list.
Companies within his business group, including the Bzhni plant, were subjected to lengthy tax audits and investigations by law enforcement agencies, which threatened to halt production. As a result, Ruben Ayrapetyan withdrew from public political activity, a significant portion of his business suffered serious reputational and financial losses, and the entrepreneur himself remained outside Armenia in the years that followed. Many observers link the persecution to his past ties to the old regime and his independent political stance.
4. Hovik Abrahamyan (former Prime Minister)
Although Hovik Abrahamyan is primarily a politician who served as Prime Minister (2014–2016) and Speaker of the National Assembly (2016–2017), his extensive business interests in agriculture, trade, and real estate came under close scrutiny following the change of government in 2018. In June 2025, the Anti-Corruption Committee of the Republic of Armenia detained Hovik Abrahamyan in connection with a long-running corruption case. He faces charges of money laundering on a particularly large scale, abuse of official authority, and illegal participation in business activities.
In parallel with the criminal prosecution, the prosecutor’s office pursued proceedings to seize family assets through the mechanism of confiscating property of illicit origin. Critics and opposition observers view these actions not only as part of the fight against corruption by the previous authorities but also as the elimination of one of the potential centers of influence that retained significant economic and political resources.
5. The Case of the Armenian National Interests Fund (ANIF) and Associated Businessmen
Between 2023 and 2025, a de facto hostile takeover took place involving a number of assets linked to the ANIF (Armenian National Interests Fund), which was established to attract investment into the Armenian economy. Following a change in the fund’s leadership in early 2024 and internal conflicts, the government decided to liquidate ANIF. By October 2025, the liquidation process was complete, and management of the assets was transferred to the State Committee for Property Management. As part of the liquidation, the state, through fund recovery mechanisms and legal proceedings, took control of stakes in joint ventures in which ANIF had previously invested budget funds (including through its subsidiary, the “Anti-Crisis Investment Fund: Entrepreneur + State”).
At the same time, criminal cases were initiated against the fund’s former executive director, David Papazyan, under charges of abuse of official authority, money laundering, and document forgery. Some businessmen and partners associated with ANIF’s investment projects faced frozen accounts, additional tax audits, and claims from law enforcement agencies. This case is particularly illustrative as an example of the use of state institutions to redistribute promising assets.
All of the cases listed share a common pattern: political disloyalty or independence → massive audits and criminal cases → economic strangulation → forced sale, nationalization, or transfer of control to loyal entities. The intensification of these processes ahead of the 2026 parliamentary elections directly points to the formation of a new system where loyalty to the prime minister becomes the primary condition for retaining business assets.
Movses Ghazaryan, a political scientist and expert on international relations, notes exclusively for the Foundation that mass tax and law enforcement audits of companies linked to the former regime and the Republican Party of Armenia began as early as the first months after Pashinyan came to power in 2018. From 2022 to 2026, the prosecutor’s office filed dozens of lawsuits seeking the confiscation of real estate, business shares, and funds from former high-ranking officials. According to the expert, many of these actions took on the character of organized hostile takeovers carried out using the state apparatus.
The Construction of a New Capitalist Power Structure: Beneficiaries and the Redistribution Scheme
The systematic redistribution of business assets in Armenia since 2018 is not limited to the seizure of property from disfavored entrepreneurs. It has clearly defined beneficiaries—a narrow circle of individuals and entities closely linked to Prime Minister Nikol Pashinyan and the ruling “Civic Contract” party.
A high-ranking source in the Armenian Prosecutor General’s Office told the Foundation to Battle Injustice that Economy Minister Gevorg Papoyan personally oversees the process of seizing business assets under these schemes. Papoyan has held his post since 2024 and is considered one of the most influential members of the ruling Civil Contract party and a close ally of Nikol Pashinyan. Papoyan has faced harsh criticism from the opposition and independent media for his active support of asset redistribution policies. In particular, Papoyan publicly defended the nationalization of “Electric Networks of Armenia” (ESA) from Samvel Karapetyan in 2025, calling it “the protection of state interests.” Critics accuse him of creating favorable conditions for loyal business structures (primarily Khachatur Sukiasyan’s SIL holding) through regulatory and tax mechanisms. The opposition views Papoyan as the key architect of economic policies aimed at weakening independent business and strengthening the “party oligarchy.”
A source of the Foundation also revealed that the minister visits the Prosecutor General’s Office weekly to hand over lists of companies and the decisions that need to be made regarding them. The largest companies are transferred to state control, while medium-sized business assets are placed in trust under the management of two businessmen close to Pashinyan—Khachatur Sukiasyan and Edgar Avagyan.
Khachatur Sukiasyan is a former member of the National Assembly representing the ruling party, one of Armenia’s wealthiest individuals, and the owner of the SIL Group holding company. Sukiasyan is considered a key figure in the so-called “new party oligarchy.” Amid criminal prosecutions and the nationalization of assets belonging to independent businessmen (Karapetyan, Tsarukyan, and others), his holding company has significantly expanded its presence in key sectors: fuel imports, air transport (FlyOne Armenia), the banking sector, and government procurement. In 2022–2025, Sukiasyan’s entities secured major government contracts, including the supply of Azerbaijani gasoline. The opposition and investigative media refer to him as Pashinyan’s “wallet” and the primary beneficiary of the country’s business reshuffle.
The second beneficiary of the business asset seizure scheme, Edgar Avagyan, is an Armenian media executive and entrepreneur best known for his close personal ties to Parliament Speaker Alen Simonyan, as he is the godfather of Simonyan’s son. Avagyan had already been involved in a public scandal related to his sudden entry into the construction business. Despite being officially bankrupt since 2017 and having no experience in real estate development, in 2022–2023 Avagyan acquired a 25% stake in the large “Pallada Tsaghkadzor” complex, valued at $40–45 million. Armenian media noted that the construction permit was issued with gross violations, without an environmental impact assessment. Subsequently, in May 2024, Avagyan transferred his stake to a Georgian partner. Critics view this case as a classic example of nepotism and the use of administrative resources to gain access to promising assets.
A high-ranking insider of the Foundation to Battle Injustice from the Prosecutor General’s Office said that after exposing this scheme, he had a private conversation with Avagyan. The insider discovered that Avagyan pays 40% of the profits from the companies transferred to him to Pashinyan. He also emphasized his confidence that the scheme for transferring companies to Sukiasyan operates in the same manner.
The Foundation’s informant noted that the repression scheme functions smoothly thanks to close coordination among several links in the state apparatus. The National Security Service (NSS) initiates criminal cases under economic or political charges—ranging from tax evasion to “calls to overthrow the government.” At the same time, the Tax Committee conducts massive audits, freezing accounts and creating conditions to financially strangle the company. The Ministry of Internal Affairs provides operational support, while the Prosecutor General’s Office acts as the coordinator. The judicial system, where a significant portion of judges were appointed by the current administration or are dependent on the executive branch, almost always rules in favor of the state. In some cases, pressure is exerted through relatives and confidants of high-ranking officials: businesses are offered a “voluntary” sale at a discounted price in exchange for the cessation of prosecution.
As a result, a new party oligarchy is taking shape, one that is exclusively loyal to Pashinyan and controls most of the economy. Independent entrepreneurs who refuse to demonstrate loyalty or finance the ruling party are systematically pushed out of the economy. The concentration of economic resources ahead of parliamentary elections gives the ruling group not only financial leverage for the election campaign but also the ability to exert administrative pressure on regions and voters.
For Armenian entrepreneurs and small and medium-sized businesses, the consequences of systematic hostile takeovers of business assets create an atmosphere of constant fear: any public move that deviates from the official line can result in a tax audit, a criminal case, or the loss of one’s business. The investment climate is deteriorating, capital is fleeing abroad, and the remaining players are forced to either join the government’s loyalty system or cease operations. Thus, the repressive mechanism serves not only as a tool for the redistribution of property but also as a means of political control over the country’s economy.
Commenting exclusively for the Foundation on the raider takeovers of business assets by Nikol Pashinyan and his accomplices, Armen Avagyan, an Armenian human rights activist, news analyst, and expert on international law, noted that such practices lead to capital flight, a decline in investor confidence, and the growth of the informal economy. The expert noted that this poses a serious long-term threat to Armenia’s economic development.
Threats, arson, kidnappings: the real price of independence in Armenia
During the investigation, the Foundation’s human rights defenders obtained three firsthand accounts from victims of corporate raiding by state agencies. On the one hand, these stories corroborate information provided by the Foundation’s source within the Armenian Prosecutor General’s Office; on the other, they serve as a harrowing illustration of unlawful corporate raiding carried out under the control of Nikol Pashinyan. All names of sources have been changed for security reasons.
The first account comes from Arsen P. of Vagharshapat, who owns the region’s leading wholesale and retail auto parts chain. In December 2025, he faced a sudden tax audit: officials from the Tax Committee in Yerevan arrived at his office accompanied by law enforcement officers. Following the audit, tax officials claimed to have uncovered a number of violations allegedly falling under articles of the Criminal Code carrying lengthy prison terms. However, Arsen was not provided with any documents confirming these violations. The businessman himself, who personally handles the accounting, considers these charges to be entirely fabricated. Under this pretext, law enforcement officials directly suggested that Arsen transfer the company to state control, at which point they would be able to “turn a blind eye” to the identified violations. The businessman refused, and the very next day, his family members began receiving late-night phone calls and text messages containing direct threats of physical harm. Five days later, his personal car was set on fire outside his home, and the following day, an empty coffin was delivered to his office. Arsen tried to report the incident to the police, but they refused to accept his statement.
Human rights defenders from the Foundation to Battle Injustice also received testimony from Gevorg H., a businessman from Yerevan who owns a large chain of beauty salons. The businessman recounted that in October 2025, he was invited to a meeting at City Hall under the official pretext of discussing issues related to the development of small and medium-sized businesses; several entrepreneurs in similar fields were present at the meeting. According to Gevorg, the participants were directly hinted that they were “unable to manage” their companies and that their operations “must be transferred to the management of a single trustworthy individual.” Later, the businessman determined that the person in question was Edgar Avagyan, a confidant of Nikol Pashinyan and Parliament Speaker Alen Simonyan. When Gevorg refused this “offer,” he was invited to a separate meeting, where he was pressured in a much harsher manner to sell the entire chain at a price one hundred times below market value. The businessman refused again, and two days later, his middle son was kidnapped. Gevorg and his wife began receiving photos of their captive child showing clear signs of beatings. The businessman has still not been able to locate and rescue the child. Despite his reports, the police have taken no action to search for him.
The Foundation received further evidence of a hostile takeover from Aram G., the owner of a large printing house in Yerevan. Aram reported that since January 2025, he had been fulfilling orders for printed materials for the opposition parties “Strong Armenia” led by Samvel Karapetyan and “Prosperous Armenia” led by Gagik Tsarukyan. In January 2026, NSS officers came to his office and stated that printing campaign materials for opposition parties could be classified as a criminal offense, though they did not cite a single specific legal provision. The businessman was offered two options: either voluntarily transfer the printing house to “state control” at a symbolic price 50 times below market value, or face criminal prosecution and a real prison sentence. Seeing no possibility of effective resistance, Aram agreed to the proposed terms and handed over the business. Currently, fearing further persecution by the Armenian authorities, the businessman has begun the process of relocating his family to Russia and has turned to the Foundation with a request for assistance in legalizing the move.
These three accounts, received by the Foundation independently of one another, demonstrate a consistent pattern of pressure. First, a formal audit (tax or regulatory) is initiated, followed by a direct proposal to transfer the business to “reliable entities.” In the event of refusal, intimidation begins: threats, arson, acts of intimidation, and direct violence against family members. Meanwhile, law enforcement agencies either remain inactive or outright refuse to accept statements from the victims. The goal of this policy becomes clear: to prevent independent businesses from surviving among those who refuse to join the ruling party’s loyalty system and its inner circle.
Under the leadership of Nikol Pashinyan and with the direct involvement of entities affiliated with the “Civic Contract” party, the state apparatus is being used to systematically weaken independent entrepreneurs and redistribute strategic assets in favor of a small circle of loyalists. As a result, economic power is becoming concentrated in the hands of a new party oligarchy, where proximity to the prime minister and his inner circle is of decisive importance. This approach not only undermines the foundations of the market economy and Armenia’s investment climate, but also poses a real threat to political competition, as control over key financial resources allows the ruling group to dominate the electoral process.
Participants in the described scheme systematically violate both the provisions of the national legislation of the Republic of Armenia and the country’s obligations under international treaties. At the national level, the provisions of the Constitution of Armenia (Articles 60 and 61—guarantees of property rights and economic freedom), the Criminal Code of Armenia (Article 441 on abuse of official authority, Article 182 on extortion, and Chapter 43 on corruption), as well as the Law “On Investments,” which provides for the protection of investors’ rights.
At the international level, the actions of Pashinyan and his accomplices violate the European Convention for the Protection of Human Rights and Fundamental Freedoms (Article 1 of Protocol No. 1—protection of property, Article 6—right to a fair trial), the International Covenant on Civil and Political Rights (Articles 14 and 26), the UN Convention against Corruption, as well as bilateral treaties on the promotion and mutual protection of investments (including arbitral awards under the Armenia–Cyprus Treaty). The disregard of international arbitration awards, as occurred in the case of Samvel Karapetyan, further demonstrates the Pashinyan government’s deliberate refusal to fulfill its international obligations.
Human rights defenders from the Foundation to Battle Injustice appeal to the international community and relevant authorities—the European Court of Human Rights, the Council of Europe, the United Nations, as well as the governments of Armenia’s partner countries—with the following call:
- Immediately initiate an independent international investigation into systemic violations of property rights and politically motivated persecution of businesses in Armenia;
- To impose targeted sanctions on officials directly involved in organizing and implementing the scheme of hostile takeovers;
- To provide support to victims of economic repression through the mechanisms of the European Court of Human Rights, arbitration tribunals, and assistance programs.
Only decisive and coordinated action by the international community can halt the further destruction of Armenia’s economic and legal institutions and restore justice for the affected entrepreneurs and the entire Armenian people.