Court Cases - The Times Of Central Asia

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Gulnara Karimova

Swiss Court Suspends Karimova Case as Asset Questions Remain

A Swiss court has suspended part of a money laundering case involving Gulnara Karimova after she failed to appear at trial. Judges at the Federal Criminal Court in Bellinzona said they had taken all possible steps to secure Karimova’s participation in the proceedings. This included a visit to Uzbekistan in August 2024, when court representatives met with the country’s Supreme Court to discuss options for her involvement. However, those efforts did not succeed, and in January 2026, Uzbekistan’s authorities formally declined the request. As a result, the court ruled that proceedings against Karimova could not continue in her absence. The same decision was applied to her co-defendant, described by prosecutors as a close associate. In this case, judges identified a separate legal obstacle preventing the trial from moving forward. Karimova’s lawyer, Grégoire Mangeat, described the dismissal more strongly, telling Reuters that the decision “amounts to an acquittal under Swiss law.” The court’s reasoning, however, was procedural: judges found a lasting obstacle to continuing the case because Karimova cannot attend, and no judgment is likely before the statute of limitations expires. According to the court, the co-defendant—an Uzbek national believed to be living in exile in Russia—cannot travel to Switzerland due to outstanding international arrest warrants. While it would theoretically be possible for him to travel from Russia, the absence of direct flights between the two countries since 2022 and the risk of detention in a third country make his participation unlikely. Judges also noted that the statute of limitations for the charges against him is set to expire in June 2027, making it effectively impossible for him to attend court before that deadline. This was described as a “permanent obstacle” to continuing proceedings against him. Despite these developments, the overall case remains open. The court confirmed that the main proceedings will continue against a former asset manager at Lombard Odier, as well as against the bank itself. Judges said there were no barriers to continuing this part of the trial and moved forward with preliminary hearings. The case, which has been under investigation for more than a decade, centers on allegations of money laundering and financial misconduct linked to a broader corruption network. While parts of the proceedings have now been suspended, key questions remain unresolved. Among them is the issue of assets allegedly connected to Karimova. The court stated that the possible confiscation of these funds will still be examined as part of the ongoing trial. The unresolved asset question is tied to a fall that has stretched across more than a decade. Once a high-profile public figure, Karimova built a vast business empire, pursued a career in fashion, and even dabbled in pop music under the name “Googoosha.” A former UN envoy and self-styled “Princess of Uzbekistan,” Karimova projected an image of glamour and influence that later collapsed under the weight of corruption cases in Uzbekistan and abroad. A leaked U.S. diplomatic cable offered a much darker portrait, describing her as “a robber baron” and “the single most...

Court Cases

Minister Sydykov on the Bakai Bank Verdict and Kyrgyzstan’s Economic Path Forward

On April 13 in Washington, D.C., The Times of Central Asia’s Javier M. Piedra spoke with Kyrgyzstan’s Minister of Economy and Commerce, Bakyt Tolomushevich Sydykov, regarding the April 7 verdict in the “Bakai Bank vs. Open Dialogue Foundation” case before the Enterprise Court of Brussels - an important legal win for Kyrgyzstan and its stance in international financial markets. In a verdict with international implications for Kyrgyzstan and the region, the Enterprise Court of Brussels sided with Bakai Bank, a Kyrgyz financial institution, in connection with a high-profile defamation case between Bakai Bank and Open Dialogue Foundation (ODF) – finding that ODF published allegations about the bank’s financial conduct without sufficient evidence. The judgment marks a significant development in a cross-border reputational and financial dispute, setting a visible bar for accountability and offering a more balanced snapshot of Kyrgyz efforts to cultivate transparency and compliance in its banking sector. Kyrgyz government officials responded to the ruling with a practical and positive outlook, acknowledging that the country has prioritized policy, monitoring, and enforcement steps to bolster integrity and trust in its institutions. This ruling is expected to reinforce public confidence and strengthen the long-term resilience of Kyrgyzstan’s governance framework. In Washington D.C. this week, Sydykov told TCA that, “We welcome this decision not just as an affirmation of Bakai Bank, but also for our broader financial system. It helps to convey our message to policymakers, diplomats, investors, and partners that Kyrgyzstan is open for business – and a ready contributor to regional and international trade. Our financial institutions operate in line with international standards, compliance expectations, and responsible governance. We are glad to move forward with strengthening our banking system and growing Kyrgyzstan’s economy for the benefit of its citizens.” Case background The proceedings were brought before the French-speaking Enterprise Court of Brussels (Tribunal de l’entreprise francophone de Bruxelles) after Bakai Bank challenged a series of publications issued by the Open Dialogue Foundation in 2023. The NGO had alleged that Bakai Bank was involved in facilitating financial transactions linked to sanctions circumvention and networks connected to Russian capital flows following the expansion of Western sanctions in early 2022. Bakai Bank rejected these allegations as unsubstantiated and damaging to its international reputation and access to financial markets. It subsequently filed a civil action in Belgium, where the ODF is active and publishes much of its advocacy material. Court proceedings and findings In its judgment, the Brussels court examined whether the Open Dialogue Foundation had sufficient factual grounds to support its published claims. The court found that the NGO’s statements were presented as factually assertive allegations rather than opinion or conjecture, thereby requiring a higher evidentiary threshold. The court concluded that the ODF had failed to provide adequate supporting evidence for its assertions regarding Bakai Bank’s alleged involvement in illicit financial activity. As a result, the court determined that the publications were unlawful in their form and impact, particularly in relation to reputational harm inflicted on the bank. The ruling ordered the ODF...

Corruption

Kazakhstan vs. Eni: Who Is the Key Figure in the Swiss Lawsuit?

Kazakhstan’s $166 billion legal campaign against the oil majors, Shell, ExxonMobil, TotalEnergies, and Eni has expanded to Switzerland. According to Bloomberg, PSA LLP, representing Kazakhstan’s Ministry of Energy, has launched proceedings aimed at strengthening the country’s position in ongoing international arbitration. Astana is seeking roughly $15 million plus interest from several companies and individuals accused of corruption in projects managed by subsidiaries of Italy’s Eni. The Swiss case centers on evidence already presented in courts in the U.S. and Italy, which Kazakhstan aims to use to prove allegations of bribery in arbitration hearings. Documents submitted by Kazakhstan to a U.S. court claim that contractors providing services to Eni implemented an “illegal scheme” to secure inflated contracts. One such contract was allegedly amended eleven times, with its value rising from $88 million to more than $490 million. While several contractors were convicted by an Italian court in 2017, no Eni employees were found guilty. Kazakh journalist Oleg Chervinsky, known for his coverage of the oil and gas sector, has highlighted that Kazakhstan is requesting the Swiss court to look into Maksat Idenov, a former first vice president of KazMunayGas, who led negotiations with Kashagan project partners between 2007 and 2008. Chervinsky recalls a dramatic episode in 2010, when Idenov resigned from KazMunayGas via a letter sent from abroad using DHL. He subsequently took a senior role at Eni. A U.S. court has approved his questioning for use in the Swiss proceedings, and his representative says he has already testified. “New revelations await us!” Chervinsky asserted. That confidence may be justified. A glance at Idenov’s career reveals his central role in Kazakhstan’s energy sector since 1992, when he began as chief legal counsel at the state holding MunaiGas. In 1993, he became assistant to the Minister of Oil and Gas Industry, and by 1995, he was serving as deputy head of the Energy Department for Europe and Central Asia at the International Bank for Reconstruction in Washington, D.C. He returned to Kazakhstan in 1999 as an advisor to then-President Nursultan Nazarbayev on Caspian energy and oil and gas export pipelines. In that role, he worked on the legal status of the Caspian Sea and other strategic projects. Idenov joined Shell in 2004 as regional vice president for strategic and commercial development in the Middle East, South Asia, and the Caspian region. In 2007, he became the first vice president of KazMunayGas. Three years later, in July 2010, he was appointed senior vice president for strategic planning at Eni. During his time at KazMunayGas, Idenov appeared in U.S. embassy cables later released by WikiLeaks. In one, he reportedly told the U.S. ambassador during a private dinner that the four most influential figures around President Nazarbayev were the Presidential Chief of Staff, Sarybay Kalmurzaev, Head of the Presidential Administration, Aslan Musin, State Secretary and Foreign Minister, Kanat Saudabayev, and the tandem of Prime Minister Karim Massimov and Nazarbayev’s son-in-law, billionaire Timur Kulibayev. Another cable described the rationale for Idenov’s appointment as lead negotiator on...

Crocus City Hall

Lawyers for Crocus City Hall Victims Seek Agalarov Asset Seizure

Lawyers representing victims of the March 2024 terrorist attack at Crocus City Hall near Moscow have petitioned Russia’s Investigative Committee to freeze the assets of businessmen Araz and Emin Agalarov. Attorney Igor Trunov, who represents several victims, told RBC, a major Russian business news outlet, that the request targets companies under the Agalarovs’ Crocus Group: JSC Crocus, the private security firm Crocus Profi, and JSC Crocus International. According to Trunov, JSC Crocus was responsible for the fire suppression system and evacuation mechanisms at the venue. Crocus Group organized cultural events at Crocus City Hall, while Crocus Profi provided security services. Lawyers argue that these companies failed to ensure adequate safety and should bear partial responsibility for the attack’s human toll. “We are requesting data from the Unified State Register of Rights to identify remaining assets, as properties are being sold and funds moved abroad,” Trunov said. He added that the petition forms part of the broader criminal investigation, which includes two separate proceedings: one targeting the perpetrators of the attack, now in court, and another examining the actions of those responsible for managing the building. The Crocus City Hall attack occurred on March 22, 2024, when armed assailants stormed the concert venue during a performance and set fire to parts of the building. The attack killed 146 people and injured hundreds more, making it one of the deadliest terrorist incidents in modern Russian history. In addition to the terrorism charges, a parallel case was opened in March under Article 238 of Russia’s Criminal Code, which covers the provision of services that fail to meet safety standards when such violations result in deaths. Investigators concluded that the fire suppression system did not activate, allowing the blaze to spread rapidly. The use of highly flammable construction materials during renovation further intensified the disaster. According to Trunov, at least 45 people died directly from extreme heat and toxic smoke inhalation, deaths that might have been prevented had safety systems functioned properly. The Agalarov family, long prominent in Russia’s business and entertainment spheres, has also faced scrutiny in Central Asia. In Uzbekistan, Araz Agalarov’s plans to develop the Sea Breeze Charvak resort complex near Tashkent sparked intense public backlash earlier this year. Environmental activists raised concerns about the potential destabilization of fragile clay soil along the Charvak reservoir and broader ecological risks. Despite widespread opposition, the Uzbek government approved the project, fueling national debates on transparency, environmental governance, and the role of foreign developers in the tourism sector. RBC reported that it had requested comment from representatives of the Agalarovs regarding the asset seizure petition, but no official response has been issued. For the victims’ legal teams, the central question is whether accountability for the Crocus City Hall massacre will be confined to the attackers themselves or extended to those responsible for ensuring the safety of one of Russia’s most prominent cultural venues.

Khrapunov

Ilyas Khrapunov Found in Contempt by U.S. Federal Court

The U.S. District Court for the Southern District of New York has ruled in favor of the city of Almaty and BTA Bank, finding Ilyas Khrapunov guilty of contempt of court. New Verdict in Ongoing Legal Battle Federal Judge John G. Koeltl ruled that Khrapunov had violated a prior court order requiring him to report regularly on his assets. He had previously been ordered to pay $221,285.31 in sanctions. “After an independent review, the Court adopts the Magistrate Judge’s findings, which are well-founded and support a finding of civil contempt,” the judge’s statement reads. “Although Khrapunov has demonstrated an inability to pay the $221,285.31 judgment against him at this time, Khrapunov has failed to comply with the clear and unambiguous court order to submit quarterly declarations regarding his financial status.” The latest ruling reaffirms Khrapunov's obligation to fully disclose assets and make efforts to satisfy court judgments. It also includes provisions for further financial penalties in the event of non-compliance. Additionally, Khrapunov has been ordered to reimburse Almaty and BTA Bank for legal costs arising from his misconduct. A Central Figure in Corruption Scandals Ilyas Khrapunov is the son of former Almaty mayor Viktor Khrapunov and the son-in-law of fugitive banker Mukhtar Ablyazov, figures long entangled in corruption investigations. The Kazakh authorities have accused members of both families of large-scale embezzlement and money laundering. Viktor Khrapunov fled Kazakhstan in 2008 and has resided in Switzerland ever since. He was sentenced in absentia in 2018 to 17 years in prison for corruption-related offenses, a judgment he disputes. Ilyas Khrapunov also left Kazakhstan shortly beforehand. Almaty and BTA Bank continue to pursue legal action in U.S. and European courts, alleging that Ablyazov and his associates siphoned billions of dollars through offshore entities. Investigators assert that Khrapunov Jr. played a direct role in the schemes. Pattern of Legal Violations In December 2022, the Southern District Court in New York ruled against Ablyazov and his associates in the amount of $218 million. In June 2024, the U.S. District Court for the Southern District of New York awarded over $32 million in damages to BTA Bank and the City of Almaty, following a jury verdict against Khrapunov and Ablyazov’s associates, Felix Sater, Bayrock Group Inc., Global Habitat Solutions, and MeM Energy Partners LLC. The jury found the defendants liable for misappropriation of property, unjust enrichment, and money had and received, affirming fraud and money laundering schemes impacting Kazakh institutions. The plaintiffs estimated the total damage caused by Viktor Khrapunov and his wife, Leila, at over $300 million, including stalled development of city land and the "alienation of properties." In a related case, in September 2018, a UK court fined Ilyas Khrapunov $500 million for violating an asset freeze order in connection with Ablyazov’s fraudulent activities.

Environment

NCOC Wins Temporary Reprieve in Environmental Case in Kazakhstan

An Astana court has overturned a multi-billion-dollar environmental fine imposed on the North Caspian Operating Company (NCOC), the consortium developing the Kashagan oil field in Kazakhstan’s sector of the Caspian Sea. The ruling was based on procedural violations by Kazakhstan’s environmental authorities. However, the court made clear that the decision does not prevent the re-filing of claims once the procedural flaws are addressed. The NCOC consortium comprises KMG Kashagan B.V. (16.877%), Shell Kazakhstan Development B.V. (16.807%), Total EP Kazakhstan (16.807%), Agip Caspian Sea B.V. (16.807%), ExxonMobil Kazakhstan Inc. (16.807%), CNPC Kazakhstan B.V. (8.333%), and Inpex North Caspian Sea Ltd. (7.563%). In March 2023, the Ministry of Ecology and Natural Resources filed a $4.2 billion lawsuit against NCOC, based on a complaint from the Atyrau Region Department of Ecology. The agency alleged that more than 1.7 million tons of sulfur were being stored at the Kashagan site, far exceeding the 2022 legal limit of 730,000 tons. NCOC denied the allegations, stating that its sulfur production and storage practices fully complied with Kazakh legislation and international standards. In March 2025, an arbitration court ruled in favor of NCOC. The case then proceeded to the appellate level, where the Administrative Chamber of the Astana Court annulled the initial enforcement order due to violations of the Administrative Procedure Code by the environmental authorities. “It has been established that the authorized body committed violations of the Administrative Procedure Code of the Republic of Kazakhstan when issuing the order, which was the basis for overturning the contested order,” the court’s press service stated. The court emphasized that its ruling was procedural and did not address the substance of the environmental claims. “The court did not assess the validity of the conclusions of the Department of Ecology on the merits. Thus, the decision does not affect the substance of the violations identified and does not prevent the authorized body from taking further action after the procedural errors have been corrected,” the statement continued. As previously reported by The Times of Central Asia, this is not Kazakhstan’s only legal dispute with NCOC. An international arbitration case remains ongoing, in which the government is seeking $150 billion in lost profits, citing delays in the Kashagan field’s launch and the failure to meet oil delivery commitments.