Russian-Armenian entrepreneur Samvel Karapetyan has initiated international arbitration proceedings against Armenia's government, seeking $500mn (£396mn) in damages over the alleged expropriation of his electricity distribution company, TASS reported on August 12.

Karapetyan and his family officially launched the case on August 11 under the investment protection agreement signed between Armenia and Cyprus in 1995, according to a businessman's defence council statement.

The dispute centres on Armenia's takeover of Electric Networks of Armenia, one of the Karapetyan family's largest assets in the country, following the entrepreneur's public defence of the Armenian Apostolic Church.

Prime Minister Nikol Pashinyan's government launched what Karapetyan's representatives describe as repressive measures, including police raids on his home, his arrest on charges of inciting power seizure, and the state takeover of his electricity company.

An emergency arbitrator appointed by the Stockholm Chamber of Commerce Arbitration Institute ordered Armenia on July 22 to refrain from any actions aimed at confiscating the company. The arbitrator reaffirmed on August 4 that Armenia must immediately comply with this decision.

According to the statement, Armenian authorities publicly rejected the decision's mandatory nature and continued actions against Electric Networks of Armenia despite the binding arbitration ruling.

"Armenia has failed to protect the interests of the Karapetyan family and their investments," the defence council said, noting that key managers and other staff were dismissed as part of what they term an illegal expropriation.

The family initially proposed negotiations, but Yerevan deliberately refused despite its international obligations, forcing the resort to international arbitration.

Karapetyan heads the Tashir Group of companies and has been a prominent investor in Armenia's energy sector. Armenia's Criminal Court of Appeal recently ruled his detention was unlawful.

The case highlights growing tensions between the Armenian government and business figures who have publicly opposed certain government policies, particularly regarding religious institutions.