Our People > Yevgeny Rakhimzhanov

Yevgeny Rakhimzhanov

Journalist

Yevgeny Rakhimzhanov is a journalist from Kazakhstan who lives in Almaty. He has worked in leading national media and headed several national media projects. His articles have appeared in a plethora of publications both at home and abroad.

Articles

Kazakhstan's Parliament

Kazakhstan’s Kurultai Has Begun Work, but the Intrigue Remains

Kazakhstan’s new unicameral parliament, the Kurultai, has held its first session and elected President Kassym-Jomart Tokayev’s nominee, Aibek Dadebay, as speaker. The choice of Dadebay, chairman of the recently created Adilet party, had been widely expected. Nevertheless, the arrangement differs markedly from the way political authority was organized under Kazakhstan’s first president, Nursultan Nazarbayev. Under Nazarbayev, the ruling party – first Otan and later Nur Otan – was headed by the president himself, while its day-to-day work was managed by a first deputy chairman. The party’s parliamentary leadership was separate, while the Senate speaker was formally elected from a candidate nominated by the president. Under Tokayev, the model changed. Tokayev left the ruling party in 2022, shortly after Nur Otan was renamed Amanat, and the Constitution was amended to bar the president from party membership. Amanat later merged into the newly created Adilet party in June 2026. That Tokayev-era model has now carried over into the Kurultai: the chairman of the ruling party entered the new parliament and was elected speaker. The arrangement places responsibility for the party and its parliamentary majority more clearly in the same hands. Tokayev also spoke about the legislative responsibilities of deputies at the opening of the first session. “Laws must be fair, understandable to people, and progressive – that is, aligned with modern requirements. Since laws affect the fate and lives of citizens, every norm and every clause must be carefully considered and comprehensively discussed,” he said. Tokayev added that artificial intelligence could be used “to improve the quality of legislative activity and minimize corruption risks,” while stressing that “advanced technologies cannot replace professional legal expertise.” Yerlan Karin, first deputy head of the Presidential Administration, noted that 24 deputies have previous parliamentary experience, arguing that this would help preserve “institutional memory” in the new legislature. Karin himself is among the senior officials whose next role remains uncertain. Tokayev must still submit nominees for vice president and prime minister to the Kurultai. The current government relinquished its powers before the new parliament, in accordance with the Constitution, and the president will appoint members of the government after consultations with deputies. He will also make an appointment to the new position of deputy chairman of the Security Council. According to political analyst Talgat Kaliyev, political observers are discussing several possible candidates for vice president. One scenario cited by Kaliyev would see current Prime Minister Olzhas Bektenov take the role, with Astana akim Zhenis Kassymbek replacing him as prime minister. “Others say that the current prime minister will retain his position, while Yerlan Karin will take the post of vice president,” Kaliyev said, arguing that Karin’s close involvement in Kazakhstan’s political reforms strengthens his case. Kaliyev said other possible candidates could include former Senate speaker Maulen Ashimbayev or former Mazhilis head Yerlan Koshanov, who is “also being tipped for the post of chairman of Kazakhstan Halyk Kenesi.” The appointments are expected to follow before Tokayev delivers his traditional annual Address, which he said would take place after...

21 hours ago

fuel shortages

Kazakh Refinery Plans Fuel Exports to Russia Amid Petrol Shortages

A small refinery in western Kazakhstan is preparing to process Russian crude and send most of the resulting petrol and diesel back to Russia as Moscow struggles with fuel shortages. The arrangement was confirmed on August 25, the same day that separate incidents occurred at two of Kazakhstan’s three major refineries. On August 19, Russian Deputy Prime Minister Alexander Novak said that, given the situation on the fuel market, the government was “keeping its finger on the pulse” and monitoring supplies daily with companies and regional authorities. According to Novak, Russia had already imposed export restrictions and begun importing petroleum products. Several refineries were also expected to return from repairs, increasing domestic supplies. Russia’s Fuel Shortage The pressure on Russia’s fuel market is illustrated by data published by the industry portal InfoTEK. According to its August 24 snapshot, AI-95 petrol, the widely used 95-octane grade, was available at only 5,620 of Russia’s 26,098 operating filling stations, or 22%. Even in Moscow, it could be found at 161 of 786 operating stations, about 20%. Russia has also temporarily relaxed restrictions on lower environmental grades of fuel, including Euro 4, Euro 3 and Euro 2, known in the Russian classification as K4, K3 and K2. Since 2016, only fuel meeting at least the Euro 5 standard had generally been permitted. Russian economist Boris Grozovsky estimates that, given the refining capacity knocked out by Ukrainian strikes and the number of plants undergoing repairs, Russia is currently short of roughly one-third of the petrol needed at peak demand. August is traditionally a high-demand month because of summer travel and agricultural work. “If it were November now, the situation would be a little easier for the Russian government. Russia is trying to bring in petrol from India, Morocco, Turkey, Kazakhstan and Azerbaijan, but imports also have limitations. The petrol brought in from India turned out to be too expensive,” Grozovsky said. Kazakh Refinery Steps In Speaking at a government briefing on August 25, Kazakhstan’s Energy Minister Yerlan Akkenzhenov said that the small Condensat refinery in Aksai, West Kazakhstan Region, would process Russian crude, with around 70% of the petrol and diesel it produces sent to Russia. Up to 30% will remain on the Kazakh market, while the refinery also retains the right to export products outside the Eurasian Economic Union. “Under the agreement we currently have, up to 30% of the petroleum products in demand, petrol and diesel, will remain in Kazakhstan, while the rest will be shipped to the Russian Federation,” the minister told reporters. Akkenzhenov said the arrangement reflected Condensat’s location close to the Russian border. The refinery is not connected by pipeline to either country’s main oil network, meaning both crude deliveries and fuel exports depend on rail capacity. Akkenzhenov also stressed that the refinery’s owner is not under sanctions and said the Energy Ministry did not see sanctions risks for the project. He said the arrangement would also bring investment and preserve jobs at a refinery that has struggled financially. Condensat’s Financial Troubles Condensat was established in...

3 days ago

Kurultai Election

Reform and Moderate Conservatism: Reading Kazakhstan’s Kurultai Vote

Preliminary results have been announced in Kazakhstan’s election to its new unicameral parliament, the Kurultai. Notably, they differ little from the first exit poll released the previous day. The outcome itself was largely predictable: the newly created ruling Adilet party won by a wide margin, while two parties failed to clear the threshold for representation in the Kurultai. In recent years, Kazakhstan has gone through a series of major electoral campaigns that have, quite literally, revived voters’ interest in exercising their basic civic rights. Along the way, the campaigns have developed a tradition of sorts, combining Soviet-era methods of drawing people to polling stations with elements of the political spectacle more characteristic of Western countries, particularly the United States. [caption id="attachment_54573" align="aligncenter" width="1600"] Image: TCA[/caption] In Soviet times, voters were enticed to polling stations with scarce goods, from candy to sausage. On election day, food fairs appeared near polling stations in Almaty: people could cast their ballots and then eat traditional Kazakh dishes, drink hot tea with milk, and listen to music. Since elections in Kazakhstan are increasingly promoted as family occasions, where parents can pass an important civic experience on to the younger generation, activities were also organized for children near polling stations. Among other things, they could play asyq, a traditional game familiar to generations of Kazakhstanis. [caption id="attachment_54574" align="aligncenter" width="1600"] Image: TCA[/caption] As for the show-like elements, some voters arrived dressed as various characters, from Kazakh batyrs, or traditional warriors, to the American superhero Spider-Man. [caption id="attachment_54568" align="alignnone" width="300"] @Regional Communications Service[/caption] [caption id="attachment_54569" align="alignnone" width="300"] @Regional Communications Service[/caption] [caption id="attachment_54570" align="alignnone" width="300"] @Regional Communications Service[/caption] Public transportation was free for city residents that day, and during the first half of the day it was easy to tell which passengers had already voted and which had not: the latter persistently tried to pay their fares, while the former stopped them from doing so. All of this coincided with an unusually high turnout in Almaty – more than 43%. According to preliminary regional figures announced after polling stations closed, turnout in the city reached 43.23%, the lowest among Kazakhstan’s regions and cities of national significance but unusually high by Almaty standards. Political analyst Andrey Chebotarev noted that turnout at this level had not been recorded in Almaty since 2012, when Kazakhstan was still reeling from the bloody events in Zhanaozen. Chebotarev said the factors behind the current level of voter participation in Almaty would require further study. “Most likely, Almaty residents who are loyal to the authorities were primarily encouraged to vote by the political changes that began with the adoption of Kazakhstan’s new Constitution. Protest-minded residents apparently did not stay away either, expressing their dissatisfaction by voting ‘against all.’ But both groups were united by strong interest in the election campaign that has just ended,” the political analyst suggested. The author of this article exercised his civic right at 11 a.m., when the ballot box at his polling station was already almost one-third full. Election commission members...

5 days ago

Middle East Crisis

Trump’s New Threat Against Iran Collides With Central Asia’s Economic Interests

U.S. President Donald Trump has threatened economic consequences for any country that continues to provide support to Iran, promising Tehran “Economic Warfare and Isolation on an unprecedented scale.” Washington has not yet announced specific new measures. For Central Asia, the warning comes as economic and transport links with Iran are developing. Kazakhstan is building its own terminal at Iran’s largest port, Tajikistan is discussing fuel purchases and new transport routes, Uzbekistan is trying to protect trade that passes through Iran, and Turkmenistan is expanding transport and energy cooperation with Tehran. Each country has its own reasons for developing these ties, but they share one concern: for landlocked Central Asia, Iran provides one of the few overland routes to the Persian Gulf and the Indian Ocean. Washington’s attempt to tighten Iran’s economic isolation therefore affects not only the region’s relations with Tehran, but also its own plans to diversify trade and transit. None of this means that Central Asian governments are prepared to disregard U.S. sanctions or enter into a political confrontation with Washington on Tehran’s behalf. The threat of secondary restrictions could cause banks, carriers, and private companies to withdraw from individual transactions even without formal decisions by their governments. Trump has not yet explained exactly what instruments he intends to use to enforce the isolation he announced. Kazakhstan Looks to the Persian Gulf Iran intensified its work with Central Asia well before Trump’s latest threat. In mid-June, the Iranian Minister of Roads and Urban Development Farzaneh Sadegh visited Astana. In talks with Kazakhstan’s Deputy Prime Minister Serik Zhumangarin, the two sides noted that bilateral trade had increased by 26.4% in 2025 to $430.2 million. Astana and Tehran now want to raise it to $3 billion, using, among other things, the free trade agreement between Iran and the Eurasian Economic Union, of which Kazakhstan is a member. The plans go beyond trade. Freight traffic along the International North-South Transport Corridor, which links Russia and Central Asia with Iran and Persian Gulf ports, rose by 12% in 2025 to 3.5 million metric tons. Rail freight between Kazakhstan and Iran also increased by 69%. Astana’s main interest lies even farther south. Iran has allowed Kazakhstan to establish its own transport and logistics terminal at Shahid Rajaee in Bandar Abbas, the country’s largest commercial port. On June 28, the two sides signed a Build-Operate-Transfer agreement. It runs for 27 years, with two years allocated for construction and another 25 for operation. Commercial operations are scheduled to begin in the project’s third year. For Kazakhstan, this is more than simply an overseas terminal. Its Foreign Ministry explicitly links the project to opening access for Kazakh cargo to markets in the Persian Gulf, South and Southeast Asia, and East Africa. In July, Foreign Minister Yermek Kosherbayev again reaffirmed Astana’s interest in the project during a visit to Iran. The ministry also cited a 26.4% increase in bilateral trade in 2025 to $430.2 million. Astana is also considering another Iranian port, Chabahar, on the Indian Ocean....

1 week ago

Silk Road Treasures

Laughter Amidst Ruins: Rediscovering Tajikistan’s Resilience Through Comedy and Cultural Exchange

The UN General Assembly's Human Rights Council recently condemned the government of Tajikistan for its failure to implement the recommendations of a 2019 study by UN representatives. The study focused on the unreconciled atrocities and societal wounds caused by the civil war that swept through the republic after the collapse of the Soviet Union. More than 60,000 people died in this war, and more than 250,000 fled the republic. Reading this news, I was reminded of and reflected on post-war Tajikistan, which I visited in the late summer of 2000. At that time, the country had been in a state of fragile peace for two years, and you could still feel the tension in the air. Since my visit to the country in 2000, the Tajik Civil War has been reflected on by many people in the arts. In the same year that UN researchers were raking up the old tragedy, the film Kazbat was released in Kazakhstan. This movie is a military drama about the real deaths of 17 soldiers of the Internal Troops of the Ministry of Internal Affairs of the Republic of Kazakhstan (now the National Guard), who fell into an ambush in Tajikistan on April 7, 1995. A little earlier, in 2017, Russian writer Vladimir Medvedev released the novel Zakhok, which talks about the horrors of that six-year war through the struggles of a single family, where the mother is Russian, and the children are half Tajik. My visit to this war-torn country was for a reason most wouldn’t have expected - a comedy festival. The group that I traveled with consisted of my teammates, Almaty residents, as well as people from other Kazakh, Uzbek, and Kyrgyz cities. Despite coming from all over Central Asia, we ended up in Tajikistan for the first international СVN festival (СVN - Club of the Funny and Inventive) in Central Asia. СVN is an improv and sketch comedy competition involving students that originated in Soviet times, the point of which is to satirize the surrounding reality through theatrical skits and question-based improv. Due to its satirical nature, СVN was banned for two decades during the Soviet-era. It was later revived during Perestroika, and, in the shortest possible time, became a phenomenon in all universities in Russia and across almost all of post-Soviet space. In Kazakhstan, СVN was developed immediately after the collapse of the USSR. Alma-Ata, which was the capital city back then, organized its own league, which included teams from the leading national universities of that time - Kazakh State University, Narkhoz, Almaty Institute of Transport Engineers, and Almaty State Medical Institute. I belong to the second generation of СVN players. Our task was to popularize this game throughout the republic and attract not only universities but also colleges and schools. Later, the new СVN league went beyond Kazakhstan, starting with friendly meetings with universities from Bishkek, Tashkent, and other Central Asian cities. Then, the International League of СVN, which was created and headed by Alexander Maslyakov, who passed...

2 years ago

Referendum

Empowering Kazakhstan’s Future: Navigating Diplomatic, Energy, and Geopolitical Challenges in the Nuclear Power Referendum

Never short of diplomatic acumen, on September 2, President Kassym-Jomart Tokayev signed a decree on holding a referendum on the construction of a nuclear power plant (NPP) in Kazakhstan. Tokayev’s goal is to ensure that arguments for nuclear energy are compelling and to involve citizens, scientists, and government officials in the decision-making process. However, it's crucial that the public are fully informed about these plans as Kazakhstan finalizes the first stage of its new nuclear development. With demand for electricity soaring, it can be argued that the case for the NPP is compelling. Officials forecast that electricity deficits are set to worsen, leading to a reliance on imports, such as was the case in the 1990s. In the first three months of 2024 alone, tariffs rose by 26%. Electricity in Kazakhstan is currently generated by 222 power plants under various forms of ownership, with 84% coming from fossil fuels, hydropower accounting for 12%, and less than 2% coming from solar and wind installations as of 2019. Renewables had expanded to 5.92% by 2023, but the deficit continues to grow. Old-Timers and Newcomers On October 6 of this year, the Kazakhstani people will give the final answer in a referendum on whether nuclear power will become a component of their everyday lives or whether nuclear-phobia, connecting both the memory of atomic testing at Semipalatinsk and persistent distrust in the ability of officials to build something grandiose without embezzlement, will prevail. The example of the LRT (the project for elevated light-rail transportation in Astana, which was to be implemented back in 2013) stands as a stark monument to corruption which has even penetrated the cultural code of today's youth. One of the first episodes of a then-popular show hosted by politician and businessman, Bulat Abilov, was devoted to nuclear energy and the need to build nuclear power plants. Abilov's inspiration for this topic was Mukhtar Dzhakishev. The former Head of Kazatomprom and Deputy Minister of Energy and Mineral Resources, on November 10, 2009, Dzhakishev was charged with the theft of Kazatomprom property and the receipt of bribes, and was sentenced to fourteen years imprisonment. Subsequently found guilty on separate charges related to embezzlement, fraud, involvement in organized crime and the abuse of power, he was sentenced to a further ten years to run concurrent to his prior sentence. Dzhakishev was released in March 2020, but this episode has led neither man to change their position - nuclear power plants are the best thing for Kazakhstan in light of coming energy shortfalls. Agitators for the NPP, who also include the General Director of Kazakhstan Nuclear Power Plants JSC, Timur Zhantikin, and specialists from the Institute of Nuclear Physics of the Ministry of Energy, have, however, encountered vociferous opposition. Some still oppose the NPP, such as ecologist Mels Yeleusizov. The arguments among those resistant to construction of the NPP have long remained unchanged, with seismic hazards, radiophobia, and corruption at the forefront. The pressure on emotions has also remained unwavering, with slogans such...

2 years ago

Nuclear Energy

Who Will Benefit if Kazakhstan Refuses To Build Nuclear Power Plants?

Kazakhstan is facing a growing energy deficit while having large reserves of uranium which would allow the country to develop its nuclear power industry. However, so far, uranium mined in the country is used solely for export, and every year difficulties with supply chains only increase. All these problems can be solved in one elegant way, but this solution is what a part of the Kazakhstani public actively opposes. Difficulties with production and supplies Kazakhstan ranks second in the world in terms of proven reserves of natural uranium. About 14% of the world's proven reserves are concentrated in the country's subsoil. According to estimates, the country's explored reserves contain more than 700,000 tons of uranium. In 2009, Kazakhstan became the world's largest uranium producer and continues to maintain its leading position in the global market, producing approximately 40% of the world's uranium. In 2021, uranium production in Kazakhstan amounted to 21,800 tons, but by 2023 this had decreased to 21,112 tons. Moreover, due to difficulties related to the availability of sulfuric acid, the national company Kazatomprom reduced production plans for 2024. According to the initial plan, between 25,000 and 25,500 tons were to be produced; now, the plan is to produce 21,000 to 22,500 tons. Kazatomprom has also stated that if limited access to sulfuric acid continues through 2024 and the company fails to reduce the construction backlog at new sites, it could have a negative impact on production plans for 2025. Uranium mining in Kazakhstan is carried out solely by in-situ leaching, the most environmentally safe and lowest-cost method available. The Russia-Ukraine conflict could not help but affect this area of Kazakhstan's exports. This year, it became known that Kazakhstan is working on diversifying its uranium export routes, bypassing Russia. This is stated in the report on implementing the concept of development of Kazakhstan's fuel and energy complex for 2023. As part of this, Kazatomprom is working on an agreement with the Chinese companies CNUS, CNEIC, and CNNC to provide uranium transit services through China. Kazakhstan currently transports uranium products to customers in North America and Europe through the port of St. Petersburg. An alternative way is to use the Trans-Caspian international transportation route, with shipments through the ports of Aktau (Kazakhstan), Alyat (Azerbaijan), and Poti (Georgia). Nuclear deadlock Obviously, some of the concerns of Kazakhstan's leadership and Kazatomprom regarding the sale of uranium products could be alleviated by developing the country's own nuclear industry, meaning that uranium mined in the country would feed its own nuclear power plants. Talks about the need to build nuclear plants in the country have regularly been raised since the beginning of the 2000s. Kazakhstani nuclear physicists and nuclear specialists, with the persistence of a Don Quixote have periodically rush to attack the windmills of Kazakhstani radio-phobia, which, however, did not arise without reason. The Semipalatinsk Nuclear Test Site (SNTS) and the Chernobyl disaster are two significant elements of this phobia. In the early 1990s, when the SNTP was closed, the...

2 years ago

Aviation

Will Direct Flights from Kazakhstan to the U.S. Become a Reality?

Kazakhstan and Uzbekistan spent the first thirty years of independence embroiled in rivalries rooted in the Soviet-era. However, the two countries have since moved towards cooperation, and both Tashkent and Astana have tasted success. One area in which Uzbekistan has far surpassed Kazakhstan in direct air routes to key countries. From Tashkent, one can even fly to New York, which is still a dream for Kazakhstanis who want to reach the U.S. via direct flights. As previously reported by TCA, however, at the end of July, the authorities in Kazakhstan stated that the first B787 “Dreamliner” will be delivered in late 2025, bringing Astana’s long-held goal of direct flights to the United States by the end of 2025 a step closer. But will this dream become a reality? In January 2022, the Parliament of Kazakhstan adopted the draft law "On ratification of the agreement between the Government of the Republic of Kazakhstan and the Government of the United States of America on Air Transport". The agreement itself was signed back on December 30, 2019, when it referenced the flight route Nur-Sultan - New York. Then Minister of Industry and Infrastructure Development (MIID), Kairbek Uskenbayev said that a joint commission of representatives of American airlines had reviewed the airports of the capital and Almaty, and concluded that they met international standards. Earlier, the MIID had specified that under the "Open Skies" regime, the fifth freedom of the air would allow Kazakhstan's airlines to bring passengers to the United States, then pick up passengers there and transport them to a third country, that is, to fly in transit through the United States. Concerning cargo, the agreement provided a seventh degree of freedom, which also allows a Kazakh airline to transport cargo from the U.S. to Canada or the United Kingdom without additional authorization. U.S. companies in Kazakhstan would have similar rights. At a meeting held in 2022, which was attended by the Director General of the Aviation Administration, Catalin Radu, and the Minister of Industry and Infrastructural Development of Kazakhstan, Kairbek Uskenbayev, it was stated that work has been underway since the beginning of 2022 to increase technical capacity in preparation for the upcoming FAA International Aviation Safety Assessment (IASA) into launching direct flights between Kazakhstan and the United States. According to Talgat Lastayev, the Civil Aviation Committee Chairman, Kazakhstan had raised its flight safety assurance level to 84%, 15% above the global average. Plans for the capital's airport changed, however. On the sidelines of a government event in May 2023, when asked by journalists when flights to New York was expected to commence, Peter Foster, head of Air Astana, Kazakhstan's largest airline, responded stating, "Flights are planned to begin by 2025. There is a small correction to be made; the flights will be from Almaty. The Almaty - New York route will at the initial stage be three times a week, with a further increase to 5 flights a week, and if there is good performance, daily flights. There will be no...

2 years ago

New rail routes Transport Railway

Steel Highways: The State of Central Asia’s Railways

Railways in Central Asia have always played an important political and economic role, but amid the current geopolitical turbulence, they have become a crucial means of transporting goods from China to Europe and the Middle East, bypassing sanctioned Russia. But what is the state of Central Asia's railway industry, and is it up to the new challenges? The history of rail transport in Central Asia dates back to the end of the 19th century. In 1874, a special commission of the Russian Empire recognized the need to construct a line from Orenburg to Tashkent. Later, however, strategic considerations forced a change of plan and to ensure a stable connection between the Turkestan and Caucasus regions, the first steel highway in Central Asia would be built to connect Tashkent with the eastern coast of the Caspian Sea. This was an active period of the so-called Great Game, when Russia and Great Britain competed in Central Asia. Since then, the geopolitical importance of railways in the region, which lacks access to oceans, has not decreased whatsoever. Indeed, amid armed conflicts in the Middle East and between Russia and Ukraine, railways have become even more important given their role in ensuring the movement of goods along the Trans-Caspian International Transport Route (TITR) and the International North-South Transport Corridor (INSTC). Against this backdrop, Kazakhstan's President Kassym-Jomart Tokayev has tasked the national railway company Kazakhstan Temir Zholy (KTZ) with leading the transformation of the country into a transport and logistics hub. Kazakhstan: A story of steady development The length of Kazakhstan's mainline rail network is over 16,000 km, with over 800 stations and crossing points. The freight car fleet exceeds 120,000 units, while locomotives number more than 1,700. Kazakhstan’s railways account for 70% of freight traffic, and 60% of passenger traffic in the country. Just under 1% of the country’s population is employed in the rail industry. According to the KTZ's annual report in 2023, container transit rose 14% year-over-year to 1.282 million TEU (twenty-foot equivalent units), which drove a 30.6% year-on-year rise in operating income to KZT1.934 trillion, while net profit came in at KZT136.8 billion ($286.8 million). The volume of freight transported between Kazakhstan and China was also up 22% to 28 million tons. In addition, KTZ reported the completion of large-scale track repairs in 2023, with 1,443 km of railway track repaired, double the figure achieved in 2022. The start of large infrastructure projects was also noted. In particular, construction was launched of the Darbaza–Maktaaral and Bakhty–Ayagoz lines (with a third border crossing with China set to be opened in 2027), while construction of the bypass line around Almaty also commenced. Over 300 km of the second track was laid on the Dostyk-Moyynty railway section. Finally, a Kazakh transport and logistics terminal was opened in the Chinese dry port of Xi'an. Uzbekistan: First high-speed rail in Central Asia O’zbekiston Temir Yo’llari (UTY), Uzbekistan's national rail carrier, was founded on November 7, 1994, taking over the lines of the Soviet-era Middle...

2 years ago

International investment Legal Dispute

Kazakhstan Resolves Dispute with Stati Amid Allegations of Litigation Profiteering

Kazakhstan’s government and representatives of the Stati family have reached an agreement to cease all legal proceedings regarding the case (Republic of Kazakhstan v. Ascom Group SA) with approval from major creditors, including an offshore investment vehicle of the Stati parties called Tristan Oil Ltd. The Stati side includes the family, as well as investors in Argentem Creek Partners (the investment manager of funds that lent money to Tristan Oil), and other possible shareholders. While the agreement comes after a fourteen-year dispute over oil and gas assets in Kazakhstan, its precise details remain confidential. Daniel Chapman, CEO of Argentem Creek Partners, was quoted in the Ministry of Justice statement as saying: “We support the framework agreement and commend President Tokayev’s decision to create a Fair Kazakhstan as part of his admirable reforms. With the settlement of this dispute, Kazakhstan is honoring international treaty obligations and, thereby, opening its doors to increased investment and heightening its economic growth potential. We welcome this new era for Kazakhstan.” Kazakhstan’s Minister of Justice, Azamat Yeskarayev said the agreement “was made in view of the public interest and does not involve the spending of budgetary funds,” and added: “We believe that this move will have a positive effect on attracting new investments in our country and on the growth of the economy.” A brief history of the dispute In 1999, Tristan Oil Ltd., an offshore company, was granted exploration and production rights at the Borankol oil field and the Tolkyn gas field located in the Mangistau region of Kazakhstan through the acquisition of Kazpolmunai LLP and Tolkynneftegaz LLP in the same year. Additionally, Tristan Oil Ltd. made investments towards the construction of a modern liquefied gas processing plant to become operational by the end of the 2000s. In 2010, assets of the Stati family were nationalized with the authorities citing their unlicensed activities, and were transferred to the trust management of KazMunayGas JSC structures. Moldovan businessmen decried the seizure as violating provisions of the Energy Charter Treaty, filed lawsuits claiming illegal seizure of their property, and began a legal battle in international jurisdictions that lasted for fourteen years. This event became a core component of the Republic of Kazakhstan v. Ascom Group SA case involving Tristan Oil Ltd. Kazakhstan’s representatives claimed that Stati’s creditor, Argentem Creek Partners, had conspired to enforce a tainted award. However, the lawsuit was dismissed by the Supreme Court of Sweden in a final June 2023 decision awarding $497.6 million to Stati parties. The court's decision mandated the Kazakhstan Government to disburse the initial instalment of approximately $76 million to the Stati family, along with accrued interest based on six-month U.S. Government bond rates, starting from April 2009. Additionally, the ruling included an allocation of $1.5 million to cover legal expenses. Despite the final and binding decision in Sweden, the legal battle showed no signs of abating, with cases continuing in England, the U.S., the Netherlands, Luxembourg, Belgium and Italy. The Ministry of Justice of Kazakhstan appeared intent on prolonging...

2 years ago

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