How Armenia lost the ENA (video)
In 2002 the Electric Networks of Armenia closed joint-stock company providing about US$350 million annually was sold for just US$37 million. But everything wasn’t so smooth. In 2001 western energy companies, which had several tens of billions of dollars annual turnover, laid claim to the ENA. No Russian company. Lawmaker Arshak Sadoyan personally headed the wave of protests, by which, in fact, the Armenian society prevented the privatization of the ENA for a year. In 2002 the Government privatized it to the only participant in the tender- “Midland Resources” unknown company registered in an offshore and engaged only in metallurgy, which annual turnover was just US$132 million. No protest followed this deal, which was actually made with a Russian company. At that time Armenia, in the person of Serzh Sargsyan signed “Property for Debt” program, according to which among other enterprises Hrazdan Thermoelectric Plant passed to Russians. At the same time Sevan-Hrazdan Cascade passed to Russia for the debt of nuclear power plant’s fuel. It meant, Armenia’s energy assets were going to the North. In 2005, June 30 the news published in one of the Armenian newspapers that the Russian “RAO UES” company had obtained 100% shares of the ENA took the Armenian consumers by surprise. During 10 years the electricity price in Armenia nearly equaled to the price in Europe. Starting from 2009 until now the ENA has applied to the Public Services Regulatory Commission for four times and increased the price. The last three times- in the last three years. And only after this year’s June 17 price hike it turns out that something is wrong in the ENA. They have been too wasteful in their pleasures and the management is simply at a tragic level. The wave of protest, which had started after the recent price hike, made Russians think what is happening in the ENA. Bibin personally announces that the losses reach AMD37 billion. “Inter RAO UES” announces that the reason is Armenia’s management system. Before that in order to prevent the expansion of the wave of protest Serzh Sargsyan had announced the necessity of holding audit in the ENA. Russians welcome this idea. The Armenian society hasn’t calmed down yet- it has only one demand- cancellation. Still the political forces not at full strength are speaking of the necessity of nationalization of the ENA.
