Political weight of Mukhtar Ablyazov’s money

by Askar Amirov

“Governments play minor role comparatively to you, who really make business at the place”, — said Georgian president Mikhail Saakashvili when awarded Mukhtar Ablyazov and Erkin Tatishav with order of Honor and honorary citizenship of his country in January, 2006. Large investment projects, huge capital investments at the territory of other states put the basis for political influence; and may be it was not just by a chance that president of Georgia so vigorously moved governments aside. Famous words of fabulist only confirm the current situation: the trouble, since the cobbler will bake pastry, and the pastry-cook will stitch boots. The background of Ablyazov’s business in Georgia and Ukraine is not clear yet, but his financial affairs have already threatened by tensions in the Russo-Kazakh relations.

As Kazakh presidential aide, Yermukhamet Yertysbayev, has said: we should not ignore the fact that, having such huge financial resources, with many overseas partners, ex-banker is able to influence policy even now. The words are confirmed by several outside attempts to stand up for disgraced businessman – many experts consider as interference in the internal affairs of our country, what is quite dangerous in any case. In 2006 year newspapers’ pages presented invasion into Georgia and sponsorship Saakashvili regime de facto as definite success of Kazakhstani economy. However, was it about the success of whole country? Hardly, if you remember about “minor role” of the government and about accidents which took place in Georgia in summer of 2008 year. Well, was Kazakhstan interested, — as well as all the structures and the population of the CIS, advocating a peaceful solution of conflicts, — in the financial injections into the Georgian uncompetitive sanatoriums and the local mineral water Borjomi? More over, Saakashvili promised return investments into Kazakhstani economics, but the question is: where is it?

According to the information of previous BTA Bank management, it was expected to invest about 200 million of US dollars only into infrastructure of Adzharia; in general, the plans were truly fantastic. Russian experts, who began to look for «Kazakh footprint» in the war after the events of August 2008, say that the amount of investment reached 500 million of US dollars, and it was planned to pour as much again. In March of 2006 year partners announced on the construction beginning of new main Tbilisi hotel Radisson Iveria invested by BTA. There were other projects on the way, more serious. The negotiations on petroleum refinery construction were held in Georgia, as well as other energetic objects with participation of Kazakhstani business. Mukhtar Ablyazov stated, — the group of Kazakhstani investors is holding negotiations with Georgian government on an opportunity of investment into hydropower engineering. It is the network of hydropower plants with 300-500-1000 megawatt capacity, — explained he.

The draft of oil refinery construction in Rustavi city also was studied. BTA Board of Directors’ Chairman was proud that "this will be a new plant”, and the volume of financing will be «approximately 350 million US dollars».

Mikhail Saakashvili said, — Adzharia government is in the process of contract signing on a purchase of 19 tourist objects by representatives of Kazakhstani business. Adzharia government is signing the agreement with consortium of Kazakhstani investors and over 19-20 tourist objects in Black Sea shores will be bought by Kazakhstani investors. It means that in two-three years seashore will be turned into hotel complex with new beaches and entertainment centers, — said former president of Georgia then, who lost his halo of ardent democrat in the eyes of nearest neighbors after two years of governing.

People began to look quite at such generous investments into non-profitable and non-stable region different after the events of 2008 year. Some experts spoke directly on invalid interference of business into political and military questions and refused to see in following conflict escalation just coincidence.

Obviously, they hit the unpleasant thoughts in fact that no other country (read — none of the other oligarch) didn’t provide Georgian leader within such active assistance, and no one else wasn’t taken in Georgia so kindly like the man who is now accused in corruption and financial crimes. Experts wonders where actually did investors’ money go; may be it went not into Borjomi or Georgian wines indeed but into military complex of the country? It’s known that some oppositional politics in Georgia as well as some local businessmen saw Kazakhstani interference quite negative, and they were not ashamed to state that.

Not only had the investments into much more powerful Ukrainian economy worried Russians. Judging by the words by BTA ex-chairman of directors board: “Ukraine has colossal economic potential and is one of the most investor’s attractive countries in Europe”. Wholesale volume of investments in Ukraine, organized with direct support from BTA bank, is more than 1 billion for two or three years. In 2007 BTA bank became largest stockholder of NASK “Oranta” by buying 25 per cent of stocks from the government. This deal was one of the biggest in terms of privation state property, providing budget income of more than 100 million dollars.

Aside from that, Mukhtar Ablyazov attracted funds on execution of pharmaceutical factory project in Borispol, using his reaped connections and personal authority, acting as an organizer of project’s funding. As is known, in 2009 Ukrainian side of BTA bank made statements about Kazakhstani stockholders’ attempts to illegally obtain 39,99 of BTA Ukraine JSC stock share. It is another international scandal, in which, directly or not, many of the ex-bankers’ ambitious projects are implicated. Kazakhstani Financial Police directly called the Ukrainian case as “cheating and affair”. Also a few pretty curious things emerged: by some evidences, widely promoted Borispol pharmaceutical factory yet couldn’t start to produce medical products, and Ukrainian-American-Kazakhstani Company MaxWell, which supervising it, raised unfavorable criticism. By certain information, this enterprise has also made only loud statements, and yet the company is selling only nutrient additives.

In light of said above, it is only left to agree that Russian experts have bases for suspicions and questions, where the oligarch’s money went or still going, and why do he need such branched network of financial-political contacts. Was that major funds invested in scandalous and doubtful enterprises of Georgian and Ukrainian politicians, as some sources calling Ablyazov “Saakashvili’s banker”? The banker who is closely connected witn American capitals too. More of that, that Mukhtar Ablyazov wasn’t hiding his obvious partnerships. When going to build a city worth 15 billion dollars in the south of Moscow disctrict, ex chairman of BTA stated in 2008 that American companies JPMorgan and Goldman Sachs were helping him in realization of projects. Results of those plans and reasons of tensions between Russia and Kazakhstan is worth another article.