Kazakhstan Justice - The Times Of Central Asia

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Healthcare Regulation

Kazakhstan Moves to Regulate Chinese Medicine Clinics

Amanzhol Altai, a deputy of the Mazhilis, has submitted a formal request to the Ministry of Health proposing tighter oversight of centers operating under labels such as “Eastern medicine,” “Chinese medicine,” “acupuncture,” and “manual therapy.” The central proposal is the creation of an open digital register of such institutions, particularly those involving foreign specialists. According to the deputy, he regularly receives complaints from citizens about the provision of medical services without proper licenses or verified qualifications, the performance of invasive procedures in violation of sanitary standards, the use of unregistered medicines, and misleading advertising that promises to “cure” serious illnesses. Altai also said that some centers operate for only short periods before changing their names or addresses in order to evade oversight. Of particular concern, he noted, are cases in which foreign nationals without confirmed medical education present themselves as doctors. “We are talking about citizens of the People's Republic of China who present themselves as qualified specialists, see patients for several months, and then close the center and leave the country,” the deputy said. In his view, such practices pose a direct threat to patients’ life and health and undermine trust in the healthcare system. At the same time, some services offered under the branding of “traditional Chinese medicine” are classified as medical activities under Kazakh law and therefore require licensing, certified qualifications, and compliance with established regulatory standards. In this context, Altai proposes not only establishing a digital register of these organizations but also issuing official legal clarifications on the status of such services, strengthening interagency control over the circulation of unregistered medicines, and tightening oversight of online advertising for these centers. The Times of Central Asia previously reported on the risks of drug shortages in Kazakhstan amid proposed changes to tax policy.

Karachaganak

Why Kazakhstan Is Not Celebrating Its Multi-Billion-Dollar Win in the Karachaganak Oil Arbitration Just Yet

In late January 2026, international media reported that Kazakhstan had won a significant arbitration case against the shareholders of the Karachaganak oil field, with compensation estimated between $2 billion and $4 billion. The Ministry of Energy has not commented on the substance of the ruling, citing confidentiality, though experts say it strengthens Kazakhstan’s position in ongoing legal proceedings related to the Kashagan oil field. According to Bloomberg and Reuters, the Kazakh government initiated legal action in 2023 over what it described as unjustified cost deductions. Originally filed for $3.5 billion, the claim later expanded to include additional allegations, such as inflated expenses tied to corruption. In 2025, the shareholders of Karachaganak Petroleum Operating proposed settling the dispute by financing a domestic gas processing plant in Kazakhstan. The government rejected the proposal, however, and arbitration continued, resulting in a ruling in favor of Kazakhstan. Sources familiar with the proceedings said the consortium, led by Eni and Shell, has been ordered to pay compensation of up to $4 billion. The tribunal has yet to finalize the exact amount. As the arbitration process remains confidential, sources requested anonymity, noting that the Karachaganak consortium still has the option to appeal. While the ruling represents a partial victory, Kazakhstan had originally sought a significantly higher sum; the tribunal accepted the government's core argument: under the production sharing agreement (PSA), the consortium charged the state for unapproved and non-reimbursable expenses. Kazakhstan’s external legal advisers estimate the final payment will range between $2 billion and $4 billion. According to sources familiar with the proceedings, the recovery mechanism will likely involve revisions to the oil distribution formula within the PSA. In its written decision, the tribunal referenced Kazakhstan’s own admission that it had tolerated “corruption and kleptocracy” until 2022. A source familiar with the ruling said Kazakh officials had accepted bribes to approve inflated costs at Karachaganak, expenses that were then inappropriately reimbursed by the state. During the arbitration, Kazakhstan’s legal team presented documents from criminal proceedings in Italy. These revealed that, in 2017, several Italian contractors pleaded guilty to bribing Kazakh officials to secure contracts at both Karachaganak and the Kashagan offshore field. Oil and gas analyst Olzhas Baidildinov said the ruling gives Kazakhstan a stronger position in the Kashagan case. He asserted that Kazakhstan can now “firmly defend its rights in major oil and gas projects,” and that the "decades of privileged status enjoyed by foreign oil and gas majors in Kazakhstan's oil industry are over.” Baidildinov added that the operating models at Karachaganak and Kashagan are likely to be restructured and possibly “de-Italianized”. He also criticized the national oil company, KazMunayGas, for its silence on the Tengizchevroil (TCO) expansion project, whose capital expenditure has surged from $12 billion to $48.5 billion. Drawing comparisons to Uzbekistan, Baidildinov noted that former Uzbekneftegaz head Bahodir Sidikov was dismissed in December 2025 and later detained on corruption charges. In the same month, presidential energy adviser Alisher Sultanov was also removed. “I’m astonished that, while regional Kazakh officials are being...

Karachaganak

Shell and Eni Face Up to $4 Billion Payout to Kazakhstan After Arbitration Ruling

Oil and gas majors Shell and Eni, key stakeholders in Kazakhstan’s Karachaganak field, have lost a key stage in an international arbitration case in London and may be required to pay the Kazakh government between $2 billion and $4 billion in compensation. The decision was first reported by Bloomberg. According to the ruling, the arbitration panel upheld Kazakhstan’s argument that the project operators had charged the state under a production sharing agreement (PSA) for unapproved cost overruns and other ineligible expenses. The tribunal found that a significant share of the disputed costs should not have been recovered from the state, siding with Kazakhstan on the central legal question. The arbitration proceedings were conducted behind closed doors, in line with standard practice for PSA disputes. The final compensation amount has yet to be determined, and the ruling remains subject to appeal. However, Bloomberg reported that the tribunal concluded the consortium must return a substantial portion of the contested funds, a decision that could require changes to the PSA’s oil and gas distribution formula. Karachaganak is one of Kazakhstan’s largest oil and gas projects and a cornerstone of the country’s energy sector. The field is operated by the Karachaganak Petroleum Operating consortium, which includes Shell, Eni, Chevron, Kazakhstan’s national oil and gas company KazMunayGas, and Russia’s Lukoil. The Kazakh government initially sought more than $6 billion in compensation, arguing that improper cost recovery had reduced state revenues over several years. The dispute was formally launched in 2023 and followed a broader effort by Kazakhstan to assert stricter oversight over major hydrocarbon projects governed by PSAs. In 2024, international partners reportedly proposed resolving the dispute by constructing a long-delayed gas processing plant at Karachaganak to supply the domestic market, an offer seen as an attempt to reach a negotiated settlement. The plant has long been a point of contention, with Kazakhstan pushing for increased gas processing capacity inside the country rather than exporting raw gas. Kazakhstan’s Ministry of Energy has declined to provide further details on the arbitration, citing confidentiality provisions. In response to an inquiry from BAQ.KZ, the ministry said: “All arbitration materials are subject to the confidentiality of the production sharing agreement and the arbitration agreement between the parties. Until the restrictions are lifted, it is not possible to provide any information.” The ruling marks one of the most significant recent legal setbacks for foreign oil companies operating in Kazakhstan in recent years and could have broader implications for how costs are approved and recovered under PSAs across the country’s energy sector.

Criminal Investigation

Olympic Boxing Champion Serik Sapiyev Assaulted by Deputy

A criminal case has been opened in Kazakhstan following the assault of Olympic boxing champion Serik Sapiyev by his deputy, Dauren Esimkhanov, in the Karaganda region’s Department of Physical Culture and Sports. The incident has triggered public outcry and intensified scrutiny of internal dynamics within the regional sports administration. Sapiyev, who currently heads the department, stated that the altercation was work-related. While the regional administration urged the public and media not to draw premature conclusions, it acknowledged that Esimkhanov had committed an offense and must be held accountable. A native of Karaganda, Sapiyev rose to prominence after winning gold in the 69 kg weight category at the 2012 London Olympics, where he was also awarded the Val Barker Trophy for most technical boxer. A two-time world amateur champion and two-time Asian champion, Sapiyev retired from professional boxing in 2012. He launched a political career the following year, becoming a UNESCO Goodwill Ambassador in 2013 and later serving as a deputy in the Mazhilis, Kazakhstan’s lower house of parliament, in 2017. In 2018, Sapiyev stepped down from parliament to lead the Committee on Sports and Physical Culture under the Ministry of Culture and Sports. He left the ministry in 2021 and, in late 2024, assumed his current position in Karaganda. The altercation reportedly took place on January 21 at a sports complex in Karaganda and was confirmed by local police. The Karaganda Region Police Department announced a criminal case based on a statement from the 42-year-old Sapiyev, citing grounds of assault. Esimkhanov, a sambo champion with accolades at both the Asian and world levels, has not denied involvement. Sapiyev addressed the incident on Instagram, asserting that the conflict stemmed from attempts to interfere with staffing decisions in the region's sports institutions without his knowledge. “I want to clarify: what happened was not a personal or domestic conflict, but rather resistance from certain individuals who have unofficial influence in the region,” Sapiyev wrote. “Without my knowledge, an attempt was made to illegally rotate the heads of sports organizations in the region. When I discovered this, I tried to stop it peacefully. I want to openly state that no provocations will shake my determination to implement systemic reforms in Kazakhstani sports, which the head of state has repeatedly spoken about.” In response, Esimkhanov claimed on social media that misinformation was being spread. “Currently, information that does not reflect the objective reality is being circulated. I ask you not to succumb to provocations and attempts to destabilize the situation by unscrupulous individuals,” he wrote. Ermaganbet Bulekpaev, the Akim of the Karaganda region, whose office oversees the department, called for caution and restraint while the investigation is underway. He confirmed that the Department for Civil Service Affairs will conduct a full inquiry, including a comprehensive audit of the department’s operations. “There has been a violation, and responsibility must be taken for it,” Bulekpaev stated during a staff meeting. “An investigation is underway, and each action will be given a legal assessment.” The scandal comes on...

Cyber Security

Kazakhstan Considers Criminal Liability for Mass Leaks of Personal Data

Kazakhstan is considering tightening legal responsibility for violations related to personal data protection. The Ministry of Artificial Intelligence and Digital Development has proposed introducing criminal liability for mass leaks of citizens' personal data, along with a significant increase in administrative fines for failing to comply with information security requirements. The proposal was announced by Rostislav Konyashkin, First Deputy Minister of Artificial Intelligence and Digital Development, during a government meeting. According to Konyashkin, Kazakhstan is adopting a “zero tolerance” policy regarding the mishandling of personal digital data. “In implementing the constitutional rights of citizens to privacy and the protection of personal information, we are moving to a zero-tolerance policy in this area. Digital transformation should not undermine the security of citizens, and any irresponsible handling of personal data should be punished in accordance with the law,” he said. In addition to criminal penalties for mass data breaches, the ministry is proposing to significantly increase administrative liability for officials violating information security standards. The current maximum fine is approximately $17,000. The proposed new ceiling would be about $42,500. The initiative would apply to government agencies, the quasi-public sector, financial institutions, and private companies that handle large volumes of personal data. The day prior to the government meeting, President Kassym-Jomart Tokayev addressed the issue of digital security at the National Kurultai (Assembly). He emphasized that the right to personal data protection should be enshrined in the country's. “Our Constitution must keep pace with the times. In the 21st century, digitalization is developing at a rapid pace and has a direct impact on human rights and freedoms. Therefore, the Basic Law must clearly stipulate that the personal digital data of citizens is protected by law,” Tokayev said. The push for stricter regulation follows a series of large-scale data breaches. In spring 2024, the State Technical Service of the National Security Committee identified a leak affecting over 2 million clients of the microfinance organization zaimer.kz. In summer 2025, the government confirmed the largest data breach in Kazakhstan’s history, compromising the personal information of over 16 million people, more than three-quarters of the country’s population of just over 20 million. Experts say the proposed legal reforms mark Kazakhstan’s shift toward a stricter regulatory framework, aligning with standards seen in the European Union and some Asian jurisdictions, where personal data breaches carry both administrative and criminal consequences.

Fraud

Kazakhstan Blocked Nearly 85 Million Fraudulent Phone Calls in 2025

Kazakhstan’s law enforcement agencies blocked approximately 85 million fraudulent phone calls in 2025, according to Interior Minister Yerzhan Sadenov. The announcement was made during a meeting of the Ministry of Internal Affairs. “Systematic work continues to combat cybercrime and internet fraud,” Sadenov stated. “A total of 84.5 million fraudulent calls were blocked, helping to prevent significant financial losses and reduce citizen exposure to fraudulent schemes. Thirteen call centers were shut down, including some located abroad. Fifty-six criminal cases have been launched against individuals involved in so-called ‘dropperism,’ aiding internet fraudsters.” Sadenov also highlighted Kazakhstan’s signing of the United Nations Convention on Combating Cybercrime, which he said will strengthen international cooperation in addressing cross-border digital crimes. As part of its broader digital transformation, Kazakhstan introduced the Law and Order service last autumn, a new tool enabling citizens to interact with law enforcement agencies. Integrated into eGov Mobile, the government’s digital services platform, as well as the Kaspi.kz and Halyk Bank mobile apps, the service is accessible nationwide. In addition to reporting offenses, users can submit complaints against police officers and send text, voice, photo, and video messages. Every report submitted through the service is automatically registered in the Ministry’s information system, with users receiving real-time updates on the status of their submissions. To support these initiatives, the Ministry of Internal Affairs has established a Department of Digitalization and Artificial Intelligence. The department is tasked with integrating smart technologies into law enforcement. One of its flagship projects is the National Video Monitoring System, which uses video analytics to enhance street and public safety, including the ongoing development of the Safe City initiative. As previously reported by The Times of Central Asia, engineers in Karaganda unveiled three prototype unmanned aerial vehicles last year aimed at improving public safety across Kazakhstan.