Russia will not sell assets in Armenia due to protests

The Russian company Inter RAO denied information about the sale of Electric Networks of Armenia (ESA) controlled by it.

“At the moment we are not conducting any negotiations on the sale of Electric Networks of Armenia,” said a company representative.

Earlier, the Russian edition of Kommersant reported that Inter RAO preparing to sell its subsidiary in Armenia due to protests in Yerevan and other Armenian cities.

Information about the upcoming sale of the ESA appeared against the background of the statement by the President of Armenia, Serzh Sargsyan, that the company could be nationalized.

The conflict around the ESA began due to an increase in electricity tariffs, the decision on which was taken on 17 June. From August 1, the tariff will increase by 6,93 dram per kWh (approximately 16,7%). The ESA planned to raise prices by 40,8%, however, after negotiations with the Public Services Regulatory Commission, the company changed its decision.

22 June, thousands of Armenians entered the central streets of Yerevan with a demand not to raise electricity tariffs. Early morning 23 June, Armenian police severely dispersed the rally, using water cannons and batons. However, later protesters began to erect barricades. On Wednesday, June 24, it became known that President Serzh Sargsyan temporarily leave the country.

24 June The State Public Services Regulatory Commission (PSRC) of Armenia stated that it was not discussing the revision of the earlier decision to increase electricity tariffs from 1 in August, despite the mass protests it caused.