Rakhat Aliyev, the flamboyant and controversial former son-in-law of Kazakhstan’s president, has been found dead in an Austrian prison, where he was awaiting trial on charges of murdering two bankers in Kazakhstan eight years ago.
Once a major powerbroker in Kazakhstan, widely feared for his ruthless pursuit of business interests and personal vendettas, Aliyev was found hanged in the Vienna jail on February 24, Reuters reported. Austrian corrections department director Peter Prechtl reportedly described the death as suicide, though Aliyev’s lawyer expressed doubts.
Aliyev’s death puts an end to a tumultuous life which saw him climb the dizzy heights of power alongside his ex-wife Dariga Nazarbayeva (the eldest daughter of President Nursultan Nazarbayev) and amass a vast fortune in Kazakhstan, before suffering a spectacular fall from grace and ending up behind bars on a murder rap in Europe.
The former senior official in the Nazarbayev administration fell out with his father-in-law in 2007 and holed up in exile to escape criminal charges, first in Austria and then in Malta (where he lived under his second wife’s surname, Shoraz).
He vociferously protested his innocence of all charges, waging a media war with Nazarbayev and making claims of political persecution that were widely ridiculed in Kazakhstan (including by the political opposition, to which he had never demonstrated any previous allegiance).
Moves are afoot in Kazakhstan to hold a snap presidential election. Proponents say an early election would give incumbent strongman Nursultan Nazarbayev a fresh mandate as the country faces a slumping economy and regional geopolitical tensions over the Ukraine conflict.
Nazarbayev, who has ruled Kazakhstan since before the collapse of the Soviet Union, won a snap election with little opposition in 2011.
The council of Assembly of People of Kazakhstan (APK), an umbrella organization representing the interests of Kazakhstan’s ethnic groups, called for the early election over the weekend. Nazarbayev chairs the organization and appoints its members.
“The country’s president, Nursultan Nazarbayev, must be given a new mandate of national confidence in order for the country to successfully navigate a period of global travails,” the APK’s council said in a statement issued on February 14, hinting at Kazakhstan’s economic difficulties and at regional tensions stemming from the escalating conflict in Ukraine.
“A mandate of confidence in the Leader of the Nation [one of Nazarbayev’s official titles] will unite and rally the people at this new stage of world development, allowing all efforts to be concentrated on the most important questions of state development,” the council said.
This public appeal from a quasi-official body for a snap election (which has been rumored for several months) means an early vote is practically a fait accompli. And it is no secret who is the favorite to win.
The grandson of President Nursultan Nazarbayev has been parachuted into a top political job in Astana, sparking speculation in Kazakhstan that the aging president may be grooming him as his successor.
Nurali Aliyev, the millionaire eldest son of the president’s daughter Dariga Nazarbayeva and her disgraced ex-husband Rakhat Aliyev, has been appointed deputy mayor of the capital of Kazakhstan, the Astana administration’s website has announced.
This is the first foray into politics by Aliyev, hitherto a prominent banker who has occupied top jobs in Kazakhstan’s financial system, including as chairman of the boards of Nurbank and the Development Bank of Kazakhstan. Aliyev – who has an estimated fortune of $200 million, according to Forbes Kazakhstan’s rich list – is currently chairman of the board of the Transtelekom telecommunications company.
Aliyev is Nazarbayev’s eldest grandson and is rumored to be his favorite grandchild (though the president does not believe in nepotism, which he railed against angrily earlier this year).
Aliyev’s mother Dariga Nazarbayeva, an MP and deputy speaker of parliament’s lower house, is a powerful political player who is herself sometimes tipped as possible presidential material.
A former prime minister of Kazakhstan has been placed under house arrest on corruption charges. The rare move against such a high-ranking member of the political establishment is sure to set tongues wagging about the presidential succession.
Serik Akhmetov – who was premier until this April and defense minister until last month – has been charged with graft under an ongoing investigation that has seen high-profile arrests in Karaganda Region, the former PM’s political fiefdom, Tengri News reported, citing Kazakhstan’s anti-corruption agency.
Baurzhan Abdishev, a former regional governor and ex-mayor of the city of Karaganda, and Meyram Smagulov, another former mayor, were arrested this fall on corruption charges relating in part to the lucrative metallurgy industry based in the central region.
Akhmetov – who forged his career in the Karaganda metallurgy industry and the Soviet Communist Party in the 1970s and 1980s – was governor of Karaganda Region from 2009 to 2012, at a time when Abdishev was city mayor. This implies that the two are political allies, and commentators in Kazakhstan had already been linking the Karaganda corruption case with a likely move against Akhmetov.
He was appointed prime minister in 2012 and dismissed this April, amid hints that President Nursultan Nazarbayev was disappointed by his lackluster performance.
Yet Akhmetov was still appointed defense minister in that reshuffle, a post from which Nazarbayev abruptly fired him in October after just six months in the job.
Fast-food giant McDonald's will open its first restaurant in the oil-rich Central Asian state of Kazakhstan next year, in partnership with an energy tycoon related by marriage to President Nursultan Nazarbayev.
The company will open its first burger bar at an unspecified location in Kazakhstan in the second half of 2015, with more to follow, it announced on November 12.
McDonald’s is heading into Kazakhstan with good connections guaranteed: It will be partnering with prominent gas tycoon Kairat Boranbayev, whose daughter Alima is married to Nazarbayev’s grandson, Aysultan Nazarbayev.
“Our agreement with Kairat will enable us to continue to build our brand,” Doug Goare, president of McDonald’s Europe, said of the foray into Kazakhstan, where insiders say that the key to business success is often not what you know but who you know.
The Kazakhstan launch comes as McDonald’s comes under massive pressure in neighboring Russia, where more than half of its 440 locations are under investigation over alleged health and safety violations (which the company denies) and nine outlets have been temporarily closed.
Kazakhstan is a close economic partner of Russia’s, but has been keen to distance itself from Moscow as Western sanctions bite, making it abundantly clear that its doors are always open to foreign investors.
French investigators are probing suspected kickbacks paid over a lucrative helicopter deal with Kazakhstan, Le Monde has revealed.
The report emerged the day before President Nursultan Nazarbayev heads to Brussels to cement Kazakhstan-European Union ties. Embarrassingly, it alleges the Kazakh president used a €2 billion contract with Marseille-based Eurocopter (since renamed Airbus Helicopter) to pressure Belgium to drop bribery charges against three Kazakhstani oligarchs.
The investigation into the Eurocopter deal (signed in 2010 when Nazarbayev was welcomed to France by Nicolas Sarkozy, then French president) on suspicion of money-laundering, corrupting public officials and receiving stolen goods began in 2012 and has been conducted in the utmost secrecy, Le Monde reported.
Last month two former Sarkozy associates who held top jobs in his administration were arrested on suspicion of involvement in paying kickbacks over the contract, the newspaper said, naming them as Jean-Francois Etienne des Rosaies, a former adviser to Sarkozy, and Nathalie Gonzalez-Prado, a former senior official at the Elysee palace.
The probe was sparked by the appearance of “suspicious funds” (more than €300,000) in the account of Etienne des Rosaies, the report said, adding that two unnamed “intermediaries” and a lawyer had been indicted.
Sarkozy is also “suspected of having put pressure in 2011 on the Belgian Senate,” at Nazarbayev’s request, over a bribery and money-laundering probe involving three Kazakhstani oligarchs as a condition for the helicopter deal going ahead, Le Monde claimed. The report did not name the oligarchs.
A few days after President Nursultan Nazarbayev said Kazakhstan could withdraw from the Russia-led Eurasian Economic Union, Russia’s president appeared to threaten Kazakhstan, stressing publicly that Kazakhstan benefits by casting its lot with Russia and fanning suspicions that all is not well between the two leaders.
Speaking at an annual, town-hall style meeting with university students and young professors on August 29, Vladimir Putin fielded a question about Kazakhstan’s post-Nazarbayev future and the likelihood of a “Ukraine scenario”—presumably, a power vacuum and civil conflict.
Because it is widely assumed that the questions are either vetted or planted, the exchange has invited plenty of scrutiny. While Putin’s answer was full of seeming praise for Nazarbayev, it also cast doubt on Kazakhstan’s durability as an independent state—a sensitive issue in Kazakhstan after Russia annexed Ukraine’s Crimea peninsula.
Events in Ukraine, including Russia’s support for rebels in the east, have already set many Kazakhstanis on edge – sparking fears that by joining the EEU Kazakhstan is tying the knot with an international pariah. They understand the obvious parallels: If Russia can seize Crimea under the pretext of protecting Russians, can it not seize northern Kazakhstan, home to large ethnic Russian communities? And if Russia can support insurgents against Kiev (a charge Moscow denies), can it not do the same against Astana? The propositions will sound even more ominous once Nazarbayev, a strongman who has established few mechanisms for a smooth transition of power, is out of the picture.
At first blush, it seems Kazakhstan's strongman President Nursultan Nazarbayev likes to keep business in the family. A daughter heads his party in the rubber-stamp parliament; his sons-in-law held various official positions and became fabulously wealthy. So why is it not surprising that Kazakhstan is paying the wife of Nazarbayev’s most distinguished advisor, former British Prime Minister Tony Blair, hundreds of thousands of pounds for her legal services?
Citing an anonymous source, The Telegraph broke the story today. The paper describes Cherie Blair as known for her “ardent” defense of civil liberties and human rights. Kazakhstan is known for muzzling free speech and locking up critics. The contract with Mrs Blair’s law firm Omnia Strategy doesn’t concern those sensitive issues, however. Instead, the paper reports, Mrs Blair will review Kazakhstan’s “bilateral investment treaties.”
The first stage of the review, which was expected to take as little as three months, is worth £120,000 [$200,000], sources have told The Sunday Telegraph.
A second phase of the project is worth a further £200,000 to £250,000 for another three to four months’ work, it is understood. Omnia Strategy, which Mrs Blair set up in 2011, also has an option to complete a third stage of the legal project for the Ministry of Justice at a fee to be decided, according to the source.
Mrs Blair is understood normally to charge clients £1,150 an hour but will bill the Kazakh taxpayer at a reduced rate of £975 an hour if the Ministry of Justice, based in the capital Astana, continues to employ Omnia on the legal review into its third stage.
With the post-Soviet region embroiled in its deepest crisis since the Cold War over Ukraine and Kazakhstan facing the impact of Western sanctions on Russia, strong leadership and staunch policy decisions would seem to be required from Astana.
But when President Nursultan Nazarbayev summoned his government today, instead he engaged in a bout of cosmetic cabinet tinkering that may distract officials seeking to steer Kazakhstan’s economy through some choppy waters.
Nazarbayev kept his prime minister, Karim Masimov, but made several ministerial replacements and announced a merger of ministries to cut their number from 17 to 12 and subsume some of Kazakhstan’s numerous agencies, departments and committees.
The streamlining of the bloated bureaucracy is welcome, but it will likely spark a bout of distracting infighting as bureaucrats fight to keep their jobs in a vastly diminished pool of vacancies.
Several ministries received a rebranding.
The Oil and Gas Ministry became the Energy Ministry under new minister Vladimir Shkolnik. But a new name and a new face will not solve Kazakhstan’s main energy problem, the stalled Kashagan oilfield, now not expected to resume production until 2016. In an unusual meeting of interests sure to please oil and gas companies, the Energy Ministry was also handed the environment portfolio.
The Economy and Budget Planning Ministry became the National Economy Ministry, swallowing up the Regional Development Ministry. The Emergencies Ministry was merged into the Interior Ministry, and the health and labor portfolios were combined at the new Health and Social Development Ministry. Aset Isekeshev, formerly minister of industry and new technologies, heads up a new Ministry of Investment and Development.
A reshuffle in Kazakhstan has brought a veteran insider back to lead the government amid fears of trouble on the domestic and international fronts.
President Nursultan Nazarbayev reappointed former Prime Minister Karim Masimov late on April 2. In a swift sequence of events, Prime Minister Serik Akhmetov resigned, Nazarbayev nominated Masimov, and Kazakhstan’s rubber-stamp parliament unanimously approved the move.
The affable and charismatic Masimov previously served as head of government for nearly six years, making him Kazakhstan's longest-serving prime minister since independence. Nazarbayev replaced Masimov in fall 2012 with the colorless technocrat Akhmetov.
The reshuffle comes as no surprise: Nazarbayev had hinted on several occasions that he was not happy with Akhmetov and in February, after a currency devaluation that caused an economic shock to many in the country, he threatened to sack the entire government.
Presenting Masimov as his candidate to parliament, Nazarbayev thanked the outgoing Akhmetov but also damned him with faint praise, noting that his government had not “permitted any particular failure” and had “worked in the measure of its experience and possibilities.”