Oligarchs - The Times Of Central Asia

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Economy Judiciary Legislation Security BTA Banking Khrapunov Ablyazov Oligarchs

Fugitive Oligarchs Ablyazov and Khrapunov Ordered to Return $32 Million to Kazakhstan by U.S. Court

Kazakhstan has secured a victory in the United States against Felix Sater and his companies, which were involved in investing money stolen by Mukhtar Ablyazov from BTA Bank. The jury in the U.S. District Court for the Southern District of New York awarded over $32 million in favor of BTA and the city of Almaty. In addition, the Kazakh oligarch and former Mayor of Almaty and Minister of Emergency Situations, Viktor Khrapunov, was reported by BTA's press service to have caused multi-billion-dollar damages through his actions. After a three-week trial, the jury recognized BTA Bank and the city of Almaty as victims of Sater's unlawful activities, which included the misappropriation of property, unjust enrichment, and obtaining money fraudulently. The compensation awarded exceeded the requested amount, totaling more than $32 million including interest. The trial, which began on June 10, 2024, demonstrated that Mukhtar Ablyazov abused his position at BTA Bank by issuing fictitious loans worth billions of dollars, leading to the bank’s collapse. At the time, BTA was the third-largest bank in Kazakhstan. Ablyazov also privatized state land and sold it at undervalued prices to companies he controlled. In addition, the Khrapunov's fraudulent actions, meanwhile, caused over $300 million in damages to Almaty, leaving significant urban land undeveloped, whilst other assets were sold to the Khrapunovs shell companies for significantly less than their market value through fictitious tenders. Evidence presented in court showed that Ablyazov and Khrapunov combined their stolen funds, with Ilyas Khrapunov, Viktor’s son and Ablyazov’s son-in-law, accused of laundering a substantial part of these funds. In September 2018, a UK court fined Ilyas Khrapunov $500 million for helping Ablyazov breach an asset freezing order. The Bayrock Group, Inc., Global Habitat Solutions (both owned by Sater), and MeM Energy Partners LLC (owned by Mendel Mochkin) were found to have facilitated the laundering of the stolen money into the U.S. financial system. The jury determined that Sater and Mochkin knowingly laundered the funds stolen by Ablyazov and Khrapunov. Additionally, the jury, having been presented with comprehensive evidence of Ablyazov's fraud against BTA Bank, returned a unanimous verdict against his co-conspirators. For the first time, a U.S. jury also unanimously ruled in favor of the city of Almaty concerning fraud committed by Viktor Khrapunov. Sater was not the only defendant in the asset laundering case. Daniel Ridloff and RRMI-DR LLC were also ordered to return assets to BTA and the Almaty Akimat. Ferrari Holdings LLC, another defendant, is in default, but Almaty Akimat and the bank plan to seek a judgment against it. In Kazakhstan, in 2018 Mukhtar Ablyazov was sentenced in absentia to life imprisonment for organizing a murder and embezzling funds from depositors of BTA Bank. In the same year, Viktor Khrapunov and his wife, Leila Khrapunova, were also sentenced in absentia to 17 and 14 years in prison, respectively. Back in December 2022, the Southern District Court in New York ruled against Ablyazov and his associates in the amount of $218 million. In total, Ablyazov stands accused of...

Oligarchs Greek Fire OCCRP

Kazakh Tourists Who Left Greece Face Charges in Island Fire

The Greek authorities have charged eight Kazakh citizens with complicity in arson after a forest fire that was allegedly caused by fireworks on the tourist island of Hydra, according to Greek media. Some of the tourists are believed to be wealthy, prominent figures in Kazakhstan and the case has stirred anger in Greece, which has experienced high temperatures and wildfires in recent weeks. The Kazakh tourists were on a luxury boat near Hydra around the time of the fire on the night of June 21, but are unlikely to appear in a Greek court soon because they left Greece by plane on the morning after the blaze. Media reports say a number of minors with the Kazakh group have not been charged. Greek outlet tovima.com said the charge was a misdemeanor. The captain and 12 crew-members of the vessel Persephone were charged with the felony of arson and authorities are investigating how the boat passengers from Kazakhstan were able to leave the country before they could be questioned. The charges against the Kazakh tourists came after investigators found the remains of firecrackers on a Hydra beach and concluded that the passengers were on the beach at the time. Initial reports said fireworks were fired from the boat but have since been discounted. Greek authorities have asked their Kazakh counterparts for help in the case, reported Kathimerini, a Greek newspaper. Another media outlet, Proto Thema, said “the only possibility” that the suspects could be brought to court is if they return voluntarily to Greece, though it also said they could theoretically be subject to arrest and transfer to Greece if they are found in another European country. Citing a “manifest obtained by journalists,” the OCCRP, an investigative reporting group, listed the names of some of the Kazakh passengers who were on the Persephone. The names are now circulating in Greek media, with some reports referring to them as “oligarchs.”

Judiciary Oligarchs Kulibayev Nazarbayev Legislation Rule of law Security Oil & Gas

Nazarbayev In-Law, Askar Kulibayev’s Oil Terminal Seized

Representatives of the General Prosecutor's Office of Kazakhstan have reported that an oil terminal in the port of Aktau belonging to Askar Kulibayev has been returned to the state. The 134-hectare property is valued at $66 million. “It was established that in 2011, the oil terminal was alienated into the ownership of Kulibayev's company. On February 26th, 2024, by the decision of the Specialized Inter-district Economic Court of Mangistau region, the claim of the Almaty city prosecutor was satisfied, and the oil terminal was returned to the state's ownership," said the supervisory body. The Almaty prosecutor's office stated that the claim was filed to compensate for the damage caused by the unlawful seizure of a foreign investor's property. However, the official message does not name the affected company. Now 87-years-old, Askar Kulibayev served as First Secretary of the Guryev (now Atyrau) Regional Committee of the Communist Party of Kazakhstan and as the Minister of Construction in independent Kazakhstan. He is the matchmaker of former President Nursultan Nazarbayev's daughter, and the father of Kazakhstan's richest man, Timur Kulibayev. In 2024, Timur Kulibayev and his wife Dinara Kulibayeva, still sit atop the list of the richest Kazakhs. The combined fortune of the Nazarbayev family is estimated at almost $10 billion.

Anti-Corruption Samruk-Kazyna National Wealth Fund Oligarchs

Cleaning up the Samruk-Kazyna National Welfare Fund

In his efforts to transition Kazakhstan from previous president Nazarbayev’s era, President Kassym-Jomart Tokayev has centered his policy agenda on strengthening justice and eradicating kleptocracy in Kazakhstan. His presidential platform, known as “Just and Fair Kazakhstan,” remains a focal point in his addresses, which often emphasize dismantling systems that have facilitated kleptocracy in the country. Tokayev's anti-corruption efforts aim to enhance transparency and combat corruption through retrieving stolen assets, implementing digital monitoring of public expenditures, mandating financial disclosures from officials, and reallocating confiscated funds to infrastructure projects. In its 2023 consultations, the IMF recognized these positive steps. These initiatives, combined with a notable increase in the public’s trust in the anti-corruption agency from 30% in 2022 to 43% in 2023, reflect tangible progress in Kazakhstan's fight against corruption. A 2024 report by Transparency International asserts that “President Tokayev has initiated a series of anti-corruption reforms, and Kazakhstan is currently in the process of implementing recommendations made by the Council of Europe’s Group of States against Corruption (GRECO) in its 2022 evaluation report.” Critics claim, however, that the country’s administration has not gone far enough in combatting corruption and that the government still lacks transparency when it comes to the management of state assets. Recently, Eurasianet commented that “Kazakhstan shows improvement on graft, but [is] still struggling.” Radio Free Europe has further reported that high-profile Kazakhs were escaping prosecution. Tokayev has been visibly distraught with the government’s progress to date on tackling corruption and has even made major leadership changes, including in the office of the General Prosecutor in 2023. Also in 2023, the former Minister of Justice came under investigation for corruption. In February 2024, the Cabinet resigned to make way for a new government under Olzhas Bektenov, a former head of an anti-corruption watchdog. This move was widely recognized as the latest effort to clean out a bureaucracy compromised by its ties to business elites, particularly those linked with the “Old Kazakhstan” under former president Nazarbayev, who have undermined the state’s capacity to ensure a fair business environment, as well as to effectively investigate and prosecute corruption charges. New steps to combat corruption and kleptocracy In a presidential decree signed last week “On measures to liberalize the economy” that introduced several initiatives aimed at “ensuring freedom of entrepreneurship by developing competition, reducing state participation in the economy, and reducing business costs”, the President took aim at Samruk-Kazyna National Welfare Fund, i.e., the country’s Sovereign Wealth Fund, which has almost $70 billion under its’ management. The fund has been highly scrutinized for being an instrument of kleptocracy. It has provided unreasonable support to banks, written-off major loans, given exorbitantly favorable loan terms, and in one case, caused a bank to fail and be taken over by a rival months later. As in other post-Soviet republics, banks have been vehicles for oligarchs ascendancy by way of using government funds to build massive business empires. Tokayev has publicly stated that the government needed to “immediately stop this orgy of leaking state...