Oligarchs - The Times Of Central Asia

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Swiss Bank Implicated in Corruption Scheme Linked to Islam Karimov’s Daughter

Swiss bank Banque Lombard Odier & Cie SA faces allegations of violating anti-money laundering regulations concerning funds linked to Gulnara Karimova, the controversial daughter of Uzbekistan’s first president, Islam Karimov. The Swiss Attorney General's Office revealed that the bank managed nine suspicious accounts tied to Karimova’s organization, the "Office," despite clear violations of external regulations and internal policies. A former bank manager was also charged with facilitating the scheme between 2005 and 2012. According to investigators, the "Office" functioned solely as a front to launder funds derived from corruption in Uzbekistan’s telecommunications sector. It reportedly had no legitimate business operations and employed no staff. The investigation found that the banker deliberately provided false information to obscure Karimova’s role as the ultimate beneficiary of the accounts. The individual is also accused of destroying or concealing documents that could have exposed the illegal origins of the funds. From 2011 to 2012, the banker allegedly allowed unauthorized access to a safe linked to the “Office,” enabling the removal of critical evidence supporting fraudulent transactions. Gulnara Karimova was once a prominent figure in her father’s administration, known for her roles as a singer, fashion designer, socialite, businesswoman, and diplomat. At one point, she was even considered a potential successor to Islam Karimov. However, by late 2013, her relationship with her father deteriorated, resulting in her political downfall. By 2014, her residence was raided, and she was implicated in a corruption case involving Swedish telecom giant TeliaSonera. Her legal troubles escalated, with convictions in 2015 for embezzlement, public fund misappropriation, and tax evasion, leading to a five-year sentence. This was extended in 2017, placing her under house arrest alongside her daughter. In 2019, Karimova was moved to a penal colony for violating house arrest conditions. In 2020, she was sentenced to an additional 13 years for crimes including creating a criminal association, extortion, and embezzlement. In September 2023, the Swiss General Prosecutor's Office filed an indictment against Karimova in the Federal Court. Prosecutors allege that foreign companies seeking entry into Uzbekistan’s telecommunications market were coerced into paying bribes through entities within the “Office” structure.' Karimova’s legal troubles extend beyond Uzbekistan. British courts have confiscated properties linked to her, valued at over £20 million. The ongoing investigation into her global operations has drawn attention to her role in one of the largest corruption cases in Uzbekistan’s history. This latest scandal has deepened scrutiny of Karimova’s dealings and raised questions about the accountability of financial institutions enabling such schemes.

Court Cases Rule of law Corruption Crime Government Justice Oligarchs officials Anti-Corruption

Out With the Old and in With the New: From Politicians to Felons – Part Two

The end of the first president of Kazakhstan, Nursultan Nazarbayev’s era coincided with a wave of mass protests across the country. The widely-accepted cause was the death of five children in a fire in a dilapidated annex to a private house, the like of which there are many in the suburbs of Astana. This tragedy occurred on the night of February 4, 2019, when the girls, with ages ranging from a baby to twelve years old, were left home alone. The event sparked furious complaints from mothers of children across the country, and on March 19 of the same year, Nazarbayev resigned, handing power to the next in the constitutional hierarchy, Kassym-Jomart Tokayev, the speaker of the Senate (Kazakhstan's upper house of parliament). High-profile cases of the transition period From that moment until the events of January 2022, the country went through a transitional period, which is often spoken of as having been a time of dual power. By analogy with the “Kremlin Towers” (a popular theory about clans in Vladimir Putin's Russia being engaged in an irreconcilable struggle for resources and influence), the new president's entourage began to be called “Akorda” - after the head of state's residence in Astana. Supporters of Nazarbayev and the idea of his return to the presidency, meanwhile, were known as the “Library” – a reference to the Library of the First President. It was believed that the officials Tokayev inherited from his predecessor were more likely to run reports to the Library than to the Akorda. This division serves to explain how the new president was bound in his ability to implement changes. Tokayev initially announced a course of political, economic and social reforms, but only the latter were implemented, while the rest were sabotaged. Even support from the general public, which Tokayev managed to garner in the National Council of Public Trust, did not help matters.Even under such constraints, however, it was possible to begin a purge of the establishment. For example, in 2020, the country was shaken by the first high-profile criminal case under Tokayev, when Bulat Bakauov, akim of the Pavlodar region and a bellwether of high-profile scandals under Nazarbayev, was accused of abusing his authority and arrested. However, the influence of Nazarbayev's entourage remained strong, so the sentence handed down to the former Akim turned out to be a meagre restriction of freedom for 3.5 years. The court obliged Bakauov to refrain from leaving his residence and regularly report to the probation service. In addition, Bakauov was obliged to engage in a hundred hours of public labor, ordered to return $10,000, and banned from holding public office. In the same year, there was a glimmer of hope that the former Akim of Almaty, Bauyrzhan Baibek - who was elevated to the height of political power by his father's childhood friendship with Nursultan Nazarbayev – would be held to account. Urban legends still circulate about the illegal earnings of Baibek and his team from the reconstruction of the center of...

Court Cases Oligarchs criminal Crime Germany

Germany Closes Money Laundering Case Against Uzbek-Russian Billionaire Usmanov

The Frankfurt Prosecutor’s Office has completed its money laundering investigation against Uzbek-Russian businessman Alisher Usmanov. The case was settled on October 11, 2024, when Usmanov agreed to pay 1.5 million euros to non-profit organizations and 2.5 million euros to the German treasury. When these payments are completed, the case will be completely closed. Prosecutors say the alleged actions in question occurred long ago and did not cause financial damage in Germany. This decision was made under section 153a of the German Criminal Procedure Code, which allows cases to be dropped if the crime is minor and prosecution isn’t in the public interest. Usmanov’s lawyers praised the result, calling it a step towards restoring his reputation. They noted that the investigation found no evidence to support money laundering charges. Usmanov has now decided not to file a counter lawsuit against prosecutors or demand damages. In 2022, a Frankfurt court deemed the searches of properties linked to Usmanov in Germany illegal, and all seized items were ordered to be returned. However, in 2023, the German Constitutional Court declined Usmanov’s complaint over the searches, stating that he had not exhausted all legal options before filing the complaint. Previously, The Times of Central Asia reported that the news from the Hamburg court about Usmanov as broadcast by the German TV channel ARD was found to be unreliable. ARD accused Usmanov of creating a system of bribing International Fencing Federation (FIE) judges. According to the report, the court found the information published by the ARD channel unreliable and banned its distribution as “inappropriate news based on suspicion.” If the court order is violated, the party found to be in violation can be fined up to 250,000 euros per episode or face imprisonment.

Finance Economy Investment International investment Oligarchs

Warren Buffett’s Companies Expand Investment in Uzbekistan

Uz500, a wealth advisory and private sector development organization focused on Uzbekistan, Eurasia, and the wider Global South, is to analyse direct foreign investments in Uzbekistan, starting with billionaire Warren Buffett. Since 1965, Buffett has transformed Berkshire Hathaway into a trillion-dollar company, primarily investing in American businesses. Currently, Berkshire owns stakes in eight non-US companies, including five major Japanese firms and China's BYD. Notably, half of these companies have expanded their presence in Uzbekistan, launching major energy, infrastructure, and manufacturing projects. Last month, the Sumitomo Corporation announced its agreement to acquire a 49% stake in several renewable energy assets in Uzbekistan from ACWA Power, a company listed in Saudi Arabia. Through this ACWA-Sumitomo partnership, they aim to develop 2.5 GW of renewable energy (solar and wind) and 968 MW of battery storage capacity in Uzbekistan, with a total investment of $4.2 billion. In August 2024, an international consortium of TAQA Water Solutions, Marubeni, and SUEZ signed a $1 billion joint development agreement with the Government of Uzbekistan to build the CIS region’s largest wastewater treatment facility in Tashkent. Meanwhile, Mitsubishi’s advanced power equipment is responsible for 90% of Uzbekistan’s large-scale gas-fired generation, including Navoi 1, 2, and 3 and the $2.5 billion Sirdarya 1 and 2 combined-cycle gas turbine (CCGT) power projects. The first EVs were produced at the BYD Uzbekistan JV plant in June 2024. While the world’s largest EV maker announced or started building its plants in Thailand, Brazil, Turkey, and Hungary, BYD Uzbekistan became BYD’s first operational overseas plant. Uz500 predicts that Japanese companies Itochu and Mitsui, part of Berkshire Hathaway’s portfolio, will follow their peers and invest in Uzbekistan, the region's fastest-growing economy. Their investments could include acquiring renewable energy or infrastructure assets from ACWA Power or Masdar or forming joint ventures to develop uranium and mineral resources. Mitsubishi, Sumitomo, and Marubeni are also expected to increase their investments through more projects and acquisitions. As a result, Berkshire’s indirect investment in Uzbekistan (already worth several hundred million dollars) is likely to grow significantly in the coming years.

Oligarchs Court Cases Crime Rule of law European Union

Alisher Usmanov Wins Court Case Against German TV Channel ARD

The Hamburg court news about Uzbek-born billionaire Alisher Usmanov was broadcast by the German TV channel ARD as unreliable. ARD accused Alisher Usmanov of creating a system of bribing International Fencing Federation (FIE) judges. According to the report, the court found the information published by the ARD channel unreliable and banned its distribution as “inappropriate news based on suspicion.” If the court order is violated, the violator will be fined up to 250,000 euros per episode or imprisoned. Alisher Usmanov’s press service highlighted that between 2022 and 2024, several European media outlets, particularly in Germany, acknowledged their inability to substantiate accusations against the businessman and signed written agreements to cease their unlawful dissemination of information. To date, approximately 30 such declarations have been made in favor of Usmanov. As a result of legal proceedings, the businessman’s legal team obtained numerous orders preventing the spread of false information by European media. “One of the most significant was the court decision issued in January 2024 to ban the statements made about Usmanov by the American magazine Forbes, which became one of the key elements in justifying the introduction of EU sanctions against him. Earlier, Usmanov also won a lawsuit against the Austrian newspaper Kurier,” the press service emphasized. The court appeal was triggered by two articles and a video report about fencing at the Paris Olympic Games, aired by Germany’s ARD channel in August 2024. In them, journalist Hans-Joachim Seppelt accused Alisher Usmanov, who stepped down as FIE president in early 2022 due to EU sanctions, of creating a system to “bribe referees.” The FIE management officially denied these accusations. According to the press service, the German Internet publication Sport1.de and the Austrian newspaper Krone.at, which republished ARD's false statements, corrected their materials at the request of Usmanov’s lawyers. However, the ARD TV channel refused to fix the inaccurate information voluntarily. “There is no evidence other than gossip spread by dubious witnesses, invented insinuations, speculation, and rumors. Respect for truth, human dignity, and the dissemination of reliable information are the foundations of the German code of journalistic ethics, which was grossly violated by the state broadcaster,” summarized lawyer Joachim Steinhöfel, representing Usmanov in court. As of August 15, 2024, Russian billionaire Alisher Usmanov is the 132nd richest person in the world, with a wealth of estimated $15.4 billion.

Oligarchs Hydra Fire

Top Kazakh Businessman Denies Allegations about Greek Island Fire

One of Kazakhstan’s wealthiest business executives has denied any wrongdoing in connection with a forest fire that was allegedly caused by fireworks on the Greek tourist island of Hydra. Daniyar Abulgazin, who has shares in multiple Kazakh energy and other companies, said he had rented the luxury boat named Persefoni I that has been linked by Greek prosecutors to the fire on June 21. However, he said he and his group left Greece as previously scheduled on June 22 after speaking with “representatives of the Greek authorities,” who made no claims against them in connection with the fire. Some of his guests had already left Greece on the morning of June 21, according to Abulgazin. “It came as a complete surprise to us to learn of the allegations that followed in the press upon our return, and I categorically deny any wrongdoing,” Abulgazin, who had returned to Kazakhstan, said in a statement that was released by DRD Partnership, a London-based communications firm. Greek prosecutors have charged the captain and 12 crewmembers of the boat with arson and eight Kazakh passengers who were on the vessel face charges of complicity in arson, according to Greek media reports. Several reports said Greek investigators found the remains of firecrackers on a Hydra beach and concluded that passengers from the Persefoni I were on the beach around the time of the fire, which burned an estimated 300 acres. The case has stirred anger in Greece, which is enduring high summer temperatures and a string of forest fires. Some commentators questioned how the Kazakh tourists were able to leave Greece before an investigation of the fire had barely begun. Some Greek media outlets said prosecutors were investigating the initial handling of the matter by Greek authorities. They have also mentioned Abulgazin and the names of some of the other Kazakh passengers on the boat in their reports, posting photos of them on broadcasts and websites. Abulgazin referred to “incorrect and misleading” media reports, expressed regret about the fire and promising to cooperate with the Greek investigation. “Neither I nor my guests performed any actions that could lead to a fire. We strictly followed the fire safety rules established on the yacht. Neither I nor my guests asked the crew of the yacht or other third parties to take any actions that could lead to a fire,” he said. Abulgazin has shares in Qazaq Oil, SinoOil and Gas Energy gas station networks as well as other operations and his worth is estimated at $380 million, according to Forbes Kazakhstan. His wife, Aidan Suleimenova, has interests in fashion companies and shopping centers in Kazakhstan. DRD Partnership, the firm that released Abulgazin’s statement about the fire, says it focuses on “building value for our clients and protecting their reputations at moments of challenge and change.”