Jonathan Fryer

Writer, Lecturer, Broadcaster and Liberal Democrat Politician

Posts Tagged ‘BTA Bank’

Wanted Man: Mukhtar Ablyazov

Posted by jonathanfryer on Sunday, 4th August, 2019

Mukhtar AblyazovWhen I first went to Kazakhstan in 1994, the fledgling nation was struggling to get on its feet. As the train I was travelling on trundled across the steppe from the then capital of Almaty to the frontier of Uzbekistan, old women wrapped up against the cold stood by the side of the track selling whatever they had managed to get their hands on. With US dollars, a visitor could live like a king for a pittance. But while the bulk of Kazakhstan’s population was having difficulties making ends meet, a smart but not necessarily honest minority were cannily seizing the opportunities offered by the disintegration of the Soviet Union to make fortunes for themselves. One such was Mukhtar Ablyazov, a Kazakh theoretical physics graduate from Moscow’s Engineering Physics Institute. In 1992 he started supplying different areas of the newly independent country with basic commodities such as salt, sugar, tea, chocolate and medicines, establishing a multi-sector private holding company, Astana Holding, He then moved into the energy sector, being appointed head of the state-owned Kazakhstan Electricity Grid Operating Company in 1997. After turning that into a profitable operation, in a rapid rise he was appointed Minister for Energy, Industry and Trade. For a while, at least, he enjoyed the favour of the then all-powerful President, Nursultan Nazarbayev. But that was not to last.

Mukhtar Ablyazov bookFast forward to 2005, by which time Mukhtar Ablyazov was Chairman of BTA Bank, which within three years had become the largest financial institution in the country. Blessed with colossal natural resources, from hydrocarbons to precious metals, Kazakhstan’s economy was starting to take off dramatically and oligarchs with the right connections were making huge fortunes. But all was not well with BTA. Auditors from Pricewaterhouse Coopers discovered a $10 billion shortfall in the bank’s accounts — and Mr Ablyazov was subsequently accused of embezzling a substantial chunk of that. He had meanwhile accumulated an impressive property portfolio on both sides of the Atlantic — including a mansion on Hampstead’s Bishop’s Avenue, “Billionaires Row”, and an estate in Surrey. BTA launched legal proceedings against their former Chairman in the British High Court; the judgment went against Ablyazov, but he managed to slip out of the country — using a false identity and a cheap bus to France, according to Gary Cartwright, a Brussels-based journalist and author of the slim volume Wanted Man: The Story of Mukhtar Ablyazov (Cambridge International Press, £9.95). In France, Ablyazov found himself the subject of an extradition order to Russia and spent some time in a French jail. Yet various human rights organisations as well as several members of the European Parliament campaigned to have that situation reversed on the grounds that he was the victim of political persecution and had a valid claim to asylum. He had indeed set up a putative opposition party and maybe even aspired to replace Nazarbayev one day in a fully democratic Kazakhstan.

BTA BankBut as Cartwright’s book outlines, the Ablyazov affair has murky tendrils that stretch into many countries, tax havens such as Luxembourg and networks of criminals and intelligence agencies. Ablyazov even stands accused of ordering the murder of his predecessor as Chairman of BTA bank, who was “accidentally” shot by a rifle when the car he was travelling in on a hunting expedition went over a bump in the road. The story is indeed worthy of popular fiction or a high-drama film and maybe one day that will happen. In the meantime, Ablyazov is assumed to be lying low in France, playing his guitar and hanging out with a close network of family and friends. Gary Cartwright’s book only skates over the surface of this extremely complex and intriguing affair, and it is very much the case for the prosecution (supported by some documentary evidence). As such, it whets the appetite rather than providing a definitive account. Presumably one day that will be written by someone, but for the present one is left with unsettling insights into the unseemly underbelly of not just Kazakhstan but of so much of the post-Soviet world, as well as elements of the support systems that dodgy oligarchs have been able to rely on across the EU, ranging from lawyers to false NGOs and sometimes gullible politicians. And in a world in which false news and alternative facts increasingly rule it may prove to be the  evil of a task to find out the whole truth.

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