Several weeks ago we wrote a piece on Timur Kulibayev “Aktaunefteservis” affair. In this article we will describe this case in depth, according to the original data provided by Mukhtar Ablyzov. Timur Kulibayev’s unique style of financial fraud, tax evasion and corporate schemes are carefully encapsulated in Kazakhstan. Kulibayev never risks to expose such practices outside the borders of his own country.

“Aktaunefteservis” (also spelled as Aqtaunefteservis) was a large holding, which controlled a range of important activities in oil extraction industry. The company provided service through subsidiaries. Here is the list:

• “OilServiceCompany” – a major drill operator, sophisticated drill well maintainer, provider of chemical technologies vital for the oil drilling. It had 3300 employees.
• “OilConstructionCompany” – with 2100 workers it provided construction services for oil drills, enabled power lines and road infrustucture.
• “OilTransportCorporation” – does what it sounds: transports all kinds of goods to and from the oil drilling platforms. It employs 2600 drivers and technicians.
• There were some other companies in the holding which are providing communication etc.

Samruk-Kazyna Fund and Timur Kulibayev

In 2008 Kazakhstan decided to use oil and natural gas profits to reform its economics. The decision to form a giant corporation to rule them all has been taken. Samruk-Kazyna National Wealth Fund has taken control of all important state assets. The mega-corp took railroads and oil drills, coal mines and communications, gold mines and ore deposits under its command. Timur Kulibayev was appointed to govern this state within state empire.

As the CEO of the Samruk-Kazyna Fund Timur Kulibayev was responsible for expansion of the Fund operations and asset growth. But he has implemented a scheme to defraud the state while acquiring the companies. Through the network of his accomplices and offshore entities he took the control over the desired company for himself. Only then, Samruk-Kazyna acquired the company paying exorbitant price. The difference – we speak about hundreds of millions USD – was deposited in offshore entities whose end beneficiary he was.

Such was the case of Aktaunefteservis holding. It was acquired by Samruk-Kazyna for $344 million. Timur Kulibayev’s fraud was loosely investigated by the local prosecution office, but no wrongdoing was found. The case against the son-in-law of the president is a no-go in Kazakhstan if the relative complies with the regime. And Timur Kulibayev certainly does.