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New York Federal Court rejects all objections of Mukhtar Ablyazov and Ilyas Khrapunov and imposes sanctions on them




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On 18 October 2021, United States District Judge Alison J. Nathan of the United States District Court for the Southern District of New York rejected various objections filed by Mukhtar Ablyazov and Ilyas Khrapunov and sanctioned them for their misconduct during the litigation filed by BTA Bank JSC and the City of Almaty.  Judge Nathan’s decision also affirmed various earlier orders by United States Magistrate Judge Katharine H. Parker (dated 3 July 2019, 15 July 2019, 7 February 2020, 19 May 2020, and 3 September 2020), which also sanctioned Ablyazov and Khrapunov.

Yesterday’s decision, along with the Court’s prior decisions, found that Ablyazov, Viktor Khrapunov, and Ilyas Khrapunov had obstructed BTA Bank and Almaty’s discovery of evidence “highly relevant” to their claims against Ablyazov, the Khrapunovs, and the shell company Triadou SPV S.A., for laundering tens of millions of dollars into the United States.  The Court found that the defendants had hidden evidence, intentionally destroyed evidence, testified untruthfully, violated court orders, and treated the litigation as “a game of cat and mouse.”

Among the specific misconduct cited in yesterday’s decision, the Court found:

  • Ablyazov “failed to comply with this Court’s orders” requiring him to produce evidence.
  • Ablyazov claimed that he had no such evidence, but that claim was “contrary to his own statements” under oath.
  • The Khrapunovs “failed to produce any financial records,” “all without any excuse whatsoever.”
  • Ilyas Khrapunov – who the Court described as “the primary abuser of discovery” – deleted “all” of his emails shortly before BTA Bank and Almaty’s lawsuit was filed, began using “hundreds” of encrypted email accounts instead, and then “incredibly” claimed that he could not access any of them.
  • Ilyas Khrapunov also refused to identify emails that he had himself sent to third parties, and “denied any memory of financial transactions that involved tens or hundreds of millions of dollars.”
  • “Ablyazov was less than forthcoming” when he testified that his net worth was in excess of USD $20 billion, but claimed that he could not name any person who helped him manage his money.

On the basis of these and similar findings of misconduct, the Court awarded judgment in BTA Bank and Almaty’s favor against Ablyazov of USD $140,115.16.  The Court will fix the amount of the sanction against Ilyas Khrapunov after receiving additional evidence from BTA Bank and Almaty about the costs incurred as a result of his behavior.


         The Court also found that “any appeal from [its] order would not be taken in good faith.”

The New York proceedings on behalf of co-claimants the Almaty and BTA Bank were initiated more than five years ago accusing Mukhtar Ablyazov and his criminal associates of laundering stolen money into the United States.  As courts throughout the world have already found, Ablyazov looted billions of dollars from BTA Bank through the issuance of sham loans – conduct for which he has already been convicted and sentenced in Kazakhstan, and found civilly liable in the United Kingdom courts.  In the U.S. proceedings, the claimants have gathered additional substantial evidence of Ablyazov’s crimes, along with securing the testimony of numerous witnesses to those crimes.  Trial is presently scheduled to begin before a U.S. jury in New York City in February 2022.


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EU and Kazakhstan leaders meet to discuss future cooperation



The prospects for ever closer cooperation between the EU and Kazakhstan will be high on the agenda of a top level meeting in Brussels otoday ( Friday 26th November). The President of Kazakhstan, Kassym-Jomart Tokayev, will continue his visit to Brussels with further meetings with EU leaders.

His visit coincides with 30 years of Kazakhstan independence and the two sides are keen to discuss the prospects for future EU-Kazakhstan cooperation.

Tokayev has recently spoken of Kazakhstan taking a leadership role in Central Asia. But he is also focused on increasing Kazakhstan’s economic ties within the  EU and he is likely to use the two-day trip to the Belgian capital to further support his goals of increased diplomacy and economic links.

On Thursday, President Tokayev met with EU leaders, including council president Charles Michel, and Belgian leadership.He is also due to meet with business representatives from EU countries.


The visit is timely as it is taking place during the year of the country’s 30’s anniversary of independence.

Since its independence on 16 December 1991, the country has benefited from significant economic and social developments as well as an expansion of its relationships with international partners such as the EU. Since the establishment of their bilateral relations in 1992, the EU-Kazakhstan partnership has evolved considerably, now including several formats of cooperation and dialogues across a range of topics such as the green economy, human rights, judicial reforms, trade, FDI, culture and education.

All these are up for discussion during the president’s visit this week.


Trade will be a key issue with the EU now being Kazakhstan’s largest economic partner, representing 41% of its external trade and 30% of its total trade in goods.

A Commission source said the EU has “welcomed” the progress made in Kazakhstan’s development while “seeking to continuously exchange ideas and values for further socioeconomic enhancement.”

This comes, said the source, under the framework of the EU’s Strategy for Central Asia and the EU-Kazakhstan Enhanced Partnership and Cooperation Agreement (EPCA) which entered into force in 2020.

The two sides hope the talks in Brussels will allow the scope of cooperation and dialogue to deepen and widen over the next couple of years. While post-pandemic recovery will be at the forefront of their relations between, trade and investment opportunities, climate change, energy, connectivity, and digitalisation will also be prominent in the discussions, which conclude later on Friday.

Topics being discussed in the course of the President’s visit include current Kazakhstan-Belgian and Kazakhstan-EU relations, as well as cooperation at regional and international levels

The commission source said, “The various sides will also explore how to further deepen their partnership in a range of fields, including trade and investments, climate, green developments and environment, transport and energy and digitilisation.”

Meetings with business representatives will focus on “optimizing existing business relationships and commercial agreements and identifying new opportunities.”

 Human rights is also on the agenda and Tokayev has been credited with implementing several human rights reforms,

The EU has backed economic development in Kazakhstan in the past and the EU is expected to continue to be a partner, provided it gets assurances on human rights.

Brussels has acknowledged Kazakhstan’s progress in implementing political reforms in the sphere of democracy and protection of human rights and, to promote civil society engagement, Kazakhstan recently hosted the EU-Central Asia Civil Society Forum in Almaty which gathered nearly 300 representatives from civil society and governments and focused on promoting efforts towards a sustainable post-COVID recovery in the Central Asia region.

Business and trade are also high on the agenda of the president’s packed programmed this week.

The EU is Kazakhstan’s main trade and investment partner, accounting for more than 40% of its external trade. Around 50% of foreign direct investment (FDI) in Kazakhstan has been attracted from the EU, including €85.4 billion from the Netherlands, €14.8 billion from France, €7.6 billion from Belgium, €6 billion from Italy and €4.4 billion from Germany.

Both Kazakhstan and the EU have previously expressed their commitment to the fight against climate change – another key issue for the leaders in their talks -  and to increasing the efforts towards the effective implementation of the Paris Climate Agreement.

President Tokayev made a commitment to achieve full decarbonisation of Kazakhstan’s economy by 2060 and to boost the share of renewable energy sources in the country’s energy mix to 15% by 2030.

He will also discuss transport and energy issues with the EU before ending his visit to Brussels.

Kazakhstan is a major energy supplier to the EU and contributes to the diversification of supply sources for the EU market. 70% of Kazakhstan’s oil exports go to the EU (6% of the EU’s oil demand).Kazakhstan is also the single largest supplier to the EU nuclear energy industry.

Education and culture have also featured in the discussions and a Kazakhstan source pointed out that Kazakh students are already studying at European universities and European students are studying at Kazakh universities, including in cloud computing, chemical nano-engineering, innovative medicine, and other fields.

“Over the years, Kazakhstan and the EU have continuously developed and strengthened their relationship,” he said.

As it marks its 30th anniversary of its independence in 2021, it is worth noting that Kazakhstan has achieved significant economic progress, internal stability, and has demonstrated its commitment to the rules-based international order.

Based on mutually beneficial cooperation, Kazakhstan has consolidated its position as a key partner to the EU in Central Asia.

A source at the European Institute for Asian Studies, based in Brussels, said, “A milestone in Kazakhstan-EU relations was reached when the parties signed the Enhanced Partnership and Cooperation Agreement (EPCA) in 2015, which entered into force in March 2020.

“The EPCA is the first EU agreement of its kind with a Central Asian country. This agreement sets the legal framework for cooperation in a variety of areas, ranging from promoting mutual trade, investment and infrastructure to security, culture, fighting climate change, and cooperating in the fields of education and research.”

The hope now is that the high level meeting in Brussels this week will inject fresh impetus into an already thriving partnership.

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Kazakhstan has a vested interest in Afghanistan’s stability



According to Kazakh media reports, Kazakhstan’s ambassador to Kabul, Alimkhan Esengeldiev, met with the acting foreign minister in the Taliban government of Afghanistan, Amir Khan Muttaqi, on 26 November, 2021, writes Akhas Tazhutov, a political analyst with Eurasia Review.

During the meeting, the two parties stressed the importance of developing trade between the two countries and stated willingness to expand the bilateral trade co-operation. Alimkhan Esengeldiev expressed his satisfaction with the security situation in the Afghan capital and urged the international community to provide humanitarian aid to Afghanistan.

Amir Khan Muttaqi reiterated the new Afghan authorities’ commitment to establish peaceful relations with all countries, primarily with neighboring states in the region. He also expressed the new government’s determination to prevent the emergence of any security threat from the territory of Afghanistan.

A month and a half after Kabul fell to insurgents, there comes a time when the problems of daily subsistence are coming to the fore once again. Over the last couple of months, marked by the withdrawal of Western military forces and the Taliban takeover, Afghanistan has been facing severe financial constraints due to blocking of the foreign aid flow to the country. The Afghan population suffers a shortage of food supplies. The resumption of food delivery to Afghanistan is, therefore, very important for normalizing the situation in the country. The way things are, Kazakhstan seems to have the highest stake in the restoration of economic stability in Afghanistan.


That’s quite understandable: “For Afghanistan, where power (political control) has recently changed hands, Kazakhstan is the main, if not the only supplier of grain. And the former Soviet republic is, in its turn, heavily dependent on this country. Afghanistan accounts for half of all its grain exports. According to Yevgeny Karabanov, a representative of Kazakhstan’s Grain Union (KGU), approximately 3-3.5 million tons of Kazakh grain have usually been to that country. In addition, Afghan importers have bought flour from Uzbekistan, which is made of Kazakh wheat” (“Kazakhstan would lose buyers which account for 50 per cent of its grain exports” –

The dramatic power shift after the Taliban takeover in Afghanistan and subsequent moves meant to freeze Afghan central bank reserves left Kazakh grain exporters with the need to find new buyers for approximately 3 million tons of wheat. Yet this was a very difficult task, of course. It is therefore not surprising that Nur-Sultan eventually decided there is no sense walking away from the Afghan market. Kazakhstan’s Agriculture Minister Yerbol Karashukeyev said on September 21 that his country would continue exporting wheat and flour to Afghanistan.

The exporting process has recently restarted, the country’s Agriculture Ministry reports. As at September 29, approximately 200,000 tonnes of flour and 33,000 tonnes of grain have been delivered from Kazakhstan to Afghanistan through Uzbekistan.


As Azat Sultanov, director of the department for production and processing of crop products at the Ministry of Agriculture, said at a briefing, “currently there are no shipment problems”. He described Afghanistan as “a major grain and wheat flour market for Kazakhstan and our strategic partner”.

From the point of view of the Kazakh interests, Afghanistan’s being of a strategic nature is not just a matter of bilateral trade relations. And there’s something else that needs to be taken into account when analyzing Kazakhstan’s attitude and policies toward Afghanistan. These are issues related to the tasks of ensuring the country’s security and promoting access for its products to global markets. 

The opinion, expressed by Dauren Abayev, who’s currently the First Deputy Head of the Presidential Administration of Kazakhstan, over two years ago in relation to the first issue, remains of utmost relevance today. At that time speaking in the course of the Open Dialogue television program aired by the Khabar TV, he made a comment regarding the discontent of some Kazakhstanis with the situation in which the state was supposedly providing significant humanitarian support to Afghanistan instead of helping its own citizens in need.

In particular he said the following:“Kazakhstan is not the only country rendering assistance to Afghanistan. Today the whole world is seriously concerned about the problems of this country. There is an explanation for it. The international community must assist in providing the necessary environment for the return of normalcy to Afghanistan after decades of armed conflict. Unless that happens, unless the normal life is restored in that war-torn country, the risk of incursions and attacks by extremist forces, the threat of drug trafficking and radicalism will always invisibly hang over us all”.

Dauren Abayev said that in May 2019. A lot has changed in Afghanistan over the last two years. Especially noteworthy are the recent developments in the country. But now the Afghan people, even more than before, needs help “in providing the necessary environment for the return of normalcy”. The awareness of this has led the Kazakh authorities to come up with a proposal for establishing a United Nations logistics hub for delivery of humanitarian aid to Afghanistan in Almaty. 

With regard to the issue of ensuring access for the Kazakh products to global markets via Afghanistan, the following can be said. Kazakhstan is a country located mainly in north of Central Asia and partly in Eastern Europe. This area of Eurasia is a region that is almost furthest away from the world’s oceans and seas. As long as international trade is based essentially on ocean freight, Central Asia will remain on the periphery of the international economic system.

Yet that may change owing a deal that Uzbekistan signed with Pakistan in February 2021 to construct a 573-kilometer railway section that would run through Afghanistan and link Termez, the southernmost Uzbek city, with Peshawar, the capital of the Pakistani province of Khyber Pakhtunkhwa.

It would connect the region of Central Asia to ports on the Arabian Sea. It also would signify the implementation of the long-standing idea of linking Central Asia with South Asia. The efforts undertaken by the US last year added new impetus to its implementation.

The New Delhi Times, in an article by Himanshu Sharma entitled “US to link South & Central Asia” (July 20, 2020), said: “The United States and five Central Asian countries pledged to “build economic and trade ties that would connect Central Asia to markets in South Asia and Europe”. Their joint statement in Washington in mid-July called for peaceful resolution of the Afghan situation for greater economic integration of the South and Central Asian regions.

In a trilateral forum in late May, the United States, Afghanistan, and Uzbekistan had reviewed projects to link South and Central Asia for regional prosperity. The joint statement unveiled plans to build railway links between Central Asia and Pakistan and a gas pipeline to India via Pakistan.

Pakistan may have to choose from the two parallel trade routes even though China would definitely expect it to join its economic pact with Iran while the Americans would like Islamabad stay connected to South and Central Asia.

Washington has created a group called C5+1 including the United States, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. Another working group will develop the transit potential of Afghanistan, including funding from international financial institutions of large projects”.

In addition to the above, the following comment should be made. On June 30, 2020, the US Secretary of State and the Ministers of Foreign Affairs of the Republic of Kazakhstan, the Kyrgyz Republic, the Republic of Tajikistan, Turkmenistan, and the Republic of Uzbekistan met in the C5+1 format. Participants in the 6-party forum, as indicated in the joint press statement at the conclusion of the talks, “had a wide-ranging discussion on mutual efforts to build economic resilience and further strengthen security and stability in Central Asia and the region. The participants expressed strong support for efforts to peacefully resolve the situation in Afghanistan and to build economic and trade ties that would connect Central Asia to markets in South Asia and Europe”.

To put it bluntly, this is about the translation into reality of the idea of forming a ‘Greater Central Asia’ through the inclusion of Afghanistan in the group of post-Soviet Central Asian republics. As for specific projects, there are two of them: the building railway links between Central Asia and Pakistan and the laying of a gas pipeline across Afghanistan and Pakistan from Turkmenistan to India.

There is nothing new in such plans. The first of them—the construction of a railway line between Central and South Asia—had initially been proposed back in 1993 at a meeting of the leaders of ECO (the Economic Cooperation Organization) member states by then Pakistani Prime Minister Nawaz Sharif.

He said: “The liberation of Afghanistan and the emergence of 6 sovereign states from the former Soviet Union who share common bonds with us provide for a basis of a new relationship which could be a catalyst for reshaping the economic life of our region. With an area of 7 million square kilometers and a population of 300 million, E.C.O. is the second largest economic grouping after the E.E.C. It has thus the potential to be a key regional economic grouping and it already has plans to establish multi faceted cooperation under its auspices. A good beginning has already been made with the development of road, rail and air links.

In fact, Pakistan sees its own network of road links eventually linking up for trade with the E.C.O. countries, a linkage which will be important in Pakistan’s quest to enter the 21st century as a modern, progressive and forward-looking country. I have no doubt that the E.C.O. is likely to fulfill its potential as a dynamic and vibrant organization whose people’s skills and considerable potential will help in improving the quality of life of the 300 million people who share a common future and a common destiny based on a better tomorrow. Our purpose here today is to build on existing ties and to create institutions which will facilitate technical, commercial and cultural interaction between the member countries”.

His proposal to construct a railway line between Central and South Asia through Afghanistan had failed to gain real support in relevant countries and been shelved. By now, not many people know who first offered such a project. The construction of a railway line between Uzbekistan and Pakistan would provide access for Kazakhstan’s exporting products to the Port of Karachi and the nearby Port Qasim. That’s why the country is very much interested in implementation of this project.

The second one—the routing of a gas pipeline to India via Pakistan—had been accepted for implementation by Bridas Corporation, an independent oil and gas holding company based in Argentina, in 1995. Yet no progress was subsequently made in realizing the project. The Taliban rise to power in Afghanistan. And everything became stalled. Later on, several countries in the region made repeated attempts to give new momentum to this initiative. Nobody seems to mind. Yet there has been little progress so far. This effort is known as the $7.6 billion, 1,814km Turkmenista-Afghanistan-Pakistan-India transnational gas pipeline (TAPI). It would run from Galkynysh, the largest gas field in Turkmenistan, through Afghanistan’s Herat and Kandahar, then Chaman, Quetta and Multan in Pakistan before terminating at Fazilka, India, near the border with Pakistan.

The idea of TAPI goes back a quarter century. In 1995, Turkmenistan and Pakistan concluded a memorandum of understanding. The Turkmen government began construction twenty years later in December 2015. At that time Ashgabat announced that the project would be completed in December 2019. Yet it proved to be nothing more than a good intention.

The effective implementation is lagging behind the Turkmen government’s promises due to financial problems. At the same time it should be mentioned that outside observers have very little concrete information about the progress of TAPI. The project is, as of now, expected to come on stream in 2023. The Taliban regime is now in place and its spokespersons in Afghanistan have spoken favorably on the TAPI pipeline. 

While speaking at the third Summit of Gas Exporting Countries Forum (GECF) held on November 23, 2015 in Tehran, the then Kazakh Foreign Minister Erlan Idrissov stressed Kazakhstan is interested in the main TAPI gas pipeline from Turkmenistan to Afghanistan, Pakistan and India whenever it is built. “Discussions are currently taking place with the Indian side about the possibility of increasing the capacity of the pipeline, taking into account the potential gas supplies from Kazakhstan. Our country is ready to transport up to 3 billion cubic meters annually through this pipeline”, he said. Such a perspective continues to remain quite relevant.

It was reassuring to see that the Americans were trying to give a new impetus to the implementation of old projects. The question that remains is whether they can be implemented at last. There is still no answer to it. But one thing is certain. Pursuing those projects first of all requires efforts to guarantee that there is political stability in Afghanistan.

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Kazakhstan implements political reforms



Lack of public confidence in political leadership around the world has many causes. But perhaps none is more important than the widespread belief – fairly or unfairly – of citizens that they are being ignored or taken for granted by those they have put in power.

It is a charge that Kazakhstan’s President Kassym-Jomart Tokayev has shown in his first months in office that he is determined to avoid. Since his election last year, he has made his main priority reforming state and government so they are more responsive to the needs and ambitions of its citizens.

Tokayev outlined more than 30 initiatives to address current social and economic issues.

All initiatives are aimed at further political and socio-economic transformations in the country, reported Erlan Karin, an advisor to the President, on his Telegram channel.  


His remarks focused on six main sections. It included a focus on the improvement of the electoral institution of rural akims (heads of local districts), solution of issues pertaining to education, implementation of digital technologies, improvement of the collateral policy of banks and regulation of appraisal activities, improving the efficiency of budgetary policy, and further strengthening of the human rights protection system.

Tokayev said that the 30th anniversary of independence is an important milestone in the history of the country. “We are a strong state and a united nation. Political modernization, economic restructuring, and social sector development must continue. More than 90 normative legal acts were adopted based on the initiatives and proposals of the National Council of Public Trust,” he said. 

The direct elections of akims of rural districts have become a significant step towards democratization. This year, more than 800 rural akims were elected.


The head of state supported the proposal to consolidate the norm that allows people with secondary specialized education to be nominated for the position of akim in villages. This will increase the competitiveness of elections at the local level. 

The President also spoke about human rights issues. He said that the abolition of the death penalty should be adopted. “Earlier, our country joined the Second Optional Protocol to the International Covenant on Civil and Political Rights aimed at abolishing the death penalty. In a recent address, I instructed [the government] to harmonize the norms of the Criminal Code with its provisions and to adopt a law,” he said. 

Crime prevention as well as family violence will also be comprehensively investigated. Tokayev said that it is necessary to crack down on domestic violence. 

Creating special working conditions for single parents was also a key focus. The President set forward the task to provide the right to remote work and a reduced employment regime for single parents. 

The transformations in the country should contribute to strengthening of democratic principles, increasing the welfare of people and the implementation of the concept of a “listening state”, noted Tokayev. “As a rule, the right decision can be found through discussion… We must be open to pluralism and be free from radicalism. This is the main principle of our policy,” said the President.

Tokayev proposed to develop standardized requirements for security systems in educational institutions. The decision is especially important due to the increasing frequency of security breaches in schools, colleges and universities abroad.

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