May 29 2025

ADWISE Consulting’s Partner Ara Khzmalyan Contributes to ICC Bulletin

We are proud to announce that our partner Ara Khzmalyan and Dr. Hayk Kupelyants have contributed an article to the ICC Bulletin, presenting the recent 2022–2023 reforms to Armenian arbitration law.

The article offers an overview of the legal amendments, which bring Armenia’s arbitration framework closer to international best practices.

Here are the key highlights of the reforms:

• Expanded Separability Principle

Previously, a narrow interpretation of the law allowed courts to assert exclusive jurisdiction over disputes concerning contract validity. As a result, a party could sidestep arbitration simply by alleging that the contract was invalid, bringing the matter before Armenian courts. The 2023 amendment marks a clear reversal of that position: contract validity disputes are now firmly within the jurisdiction of arbitral tribunals.

• Clarified Arbitrability of Commercial Disputes

The definition of “commercial” disputes under the law has been broadened to explicitly include disputes concerning the formation and validity of contracts, pre-empting objections based on non-arbitrability.

• Enhanced Impartiality Standards for Arbitrators

The law now sets out specific grounds for challenging arbitrators and establishes rules on conflicts of interest, thereby enhancing procedural fairness and transparency.

• Streamlined Enforcement of Small Claims

Arbitral awards may now be enforced directly—without court recognition (exequatur)—if:

• The arbitration is administered by a permanent arbitral institution;
  • The seat of arbitration is in Armenia;
  • All parties are Armenian citizens or entities registered in Armenia;
  • The award does not exceed AMD 5,000,000.

These reforms represent a significant milestone in strengthening Armenia’s arbitration landscape—minimizing procedural delays, ensuring legal certainty, and boosting confidence in arbitration as an effective dispute resolution tool.