Mukhtar Ablyazov

Ablyazov has been accused of embezzling $6 billion from BTA Bank while serving as chairman. In 2015, a French court in Lyon issued an extradition order. However, in December 2016, France's highest administrative court, the Conseil d'Etat, canceled the extradition order, on the ground that Russia had a political motive in making the extradition request. Ablyazov was subsequently released from the Fleury-Mérogis Prison and is believed to currently reside in Paris, France. The UK High Court of Justice has twice issued arrest warrants on Ablyazov; most recently July 25, 2019, and extended to 22 months a court-ordered detention originating in 2012 for a contempt of court judgement.

The man convicted of manslaughter for accidentally shooting banker Yerzhan Tatishev on a hunting trip in 2004 said in a 2017 television documentary that he was in fact hired by Ablyazov to kill Tatishev who was Ablyazov's BTA Bank partner and shareholder. The Kazakh Prosecutor General indicted Ablyazov on 17 August 2018 for the murder of former BTA Bank Chairman Erzhan Tatishev. Ablyazov was convicted in November 2018 for the murder of Tatishev and sentenced to life prison.

The Italian media blamed the Interior Minister and the Deputy Prime Minister of Italy, Angelino Alfano simultaneously,, for the illegal deportation. He is also a member of the centre-right party ‘The People of Freedom’ headed by Silvio Berlusconi, known for his friendly relations with the President of Kazakhstan, Nursultan Nazarbayev.

Mukhtar Ablyazov was sentenced to 20 years in prison in June 2017. An appeals court upheld the indictment for criminal conspiracy, embezzlement and money laundering.

BTA Bank filed suit in 2016 in U.S. federal court in Virginia against the sister of Ablyazov, Gaukhar Kussainova, for allegedly receiving millions in funds originating from BTA Bank. The BTA Bank claim against Kussainova in federal court is that she received more than $6 million of stolen BTA Bank funds from Ablyazov and used the stolen monies to buy business and real estate assets in the USA. Gaukhar Kussainova is the owner of a 7,349 square foot house on a 40,000 square foot lot valued at more than $2.1 million in Fairfax, Virginia.

JSC BTA Bank v Mukhtar Ablyazov is a landmark financial fraud case consisting of up to eleven proceedings before the English High Court that has set precedents for judgement monetary value, and procedure and standards for recovery of assets held in disparate jurisdictions worldwide. A 2015 ruling established that de facto control over the funds held in trust are in reach of Worldwide Freezing Orders.

City of Almaty, Kazahkstan v. Mukhtar Ablyazov was filed on July 9, 2015 in the Southern District of New York federal court with Judge Alison Julie Nathan presiding. Court documents show that the Plaintiffs are seeking to depose Ablyazov in New York, the UK, Spain or France, and that Ablyazov has not yet produced documents in discovery effectively stonewalling the court. Ablyazov wrote to the federal judge in February 2019 that he cannot provide documents to the court because he left them in the U.K. in 2012. The Plaintiffs responded that Ablyazov has obstructed discovery and indeed documents are in possession by Ablyazov's U.K. lawyers and he could instruct their release to the court. Court fillings allege that Ilyas Khrapunov deleted email accounts and failed to produce documents about his real-estate deals by ignoring U.S. court's order to preserve evidence. The deleted emails give details to the embezzlement of BTA Bank funds by Ablyazov and Viktor Khrapunov. Wells Fargo has been subpoenaed for transactions history of Gennady Petelin specific to New York real estate investments made with the allegedly stolen BTA Bank funds. The co-defendant, Triadou SPV S.A., has stated to the court that the capital for NYC real estate did not include BTA stolen funds, rather loans from Telford International Limited, a shell company capitalized and operated by Petelin. Telford International Limited is identified in the Panama Papers as registered in Samoa.

A 2015 suit to recover embezzled funds was filed in the Southern District of New York listing Ablyazov, Viktor Khrapunov, Joseph Chetrit and The Chetrit Group as defendants. The suit alleged that the Chetrit Group helped Ablyazov and Khrapunov hide $40 million in two condo conversion projects. The Chetrit Group went on to settle with the Plaintiffs (the city of Almaty and BTA Bank) and became witnesses for the prosecution.

While Ablyazov was BTA Chairman, the bank partnered on investment projects in Georgia with the Silk Road Group, a company with a history of alleged financial fraud and money laundering. During Ablyazov's chairmanship, and at the time of alleged financial mismanagement, BTA Bank loans were made to Silk Road Group projects or Silk Road Group owned-companies. In 2014 Silk Road Group collaborated with former BTA Bank executive Yerkin Tatishev and Ablyazov business partner to repay outstanding BTA Bank loans. He and the Silk Road Group co-owned a Georgian bank creating a conflict of interest. The Silk Road Group was revealed to be a client of the Panamanian law firm Mossack Fonseca, which specialized in offshore corporate structuring, accounting for purpose of sanction and tax evasion, and subject of the Panama Papers. The Silk Road Group entered an agreement with the Trump Organization to license the Trump brand for two luxury developments in Batumi and Tbilisi, Georgia. The deal was cancelled when Trump became president to avoid a conflict of interest. The Silk Road Group received loans from BTA Bank while Ablyazov was bank chairman, and Trump Organization involvement with SRG may be subject of Robert Mueller investigation into collusion with the Russian government and the Trump campaign.

On 18 April 2014, the Italian authorities granted Ablyazov’s wife and daughter refugee status. Alma and Alua received a 5-year renewable permit of stay. The decision on the award of refugee status was made by the Territorial Commission in Rome for Recognition of International Protection, under Article 1 of the Geneva Convention.

Ablyazov is alleged to have embezzled $6 billion from BTA Bank while serving as chairman. From July 2013 to December 2016, Ablyazov was detained by French authorities, as Russia sought Ablyazov's extradition from France, but Ablyazov argued that extradition would place him at risk of ill-treatment and an unfair trial. Human rights groups Amnesty International, Human Rights Watch and Open Dialogue Foundation, as well as many members of the European Parliament, wrote in opposition to extradition of Ablyazov. In 2015, a French court in Lyon issued an extradition order. However, in December 2016, France's highest administrative court, the Conseil d'Etat, canceled the extradition order, on the ground that Russia had a political motive in making the extradition request. Ablyazov was released from the Fleury-Mérogis Prison. Latvian MEP Iveta Grigule-Pēterse warned European Union NGOs and advocacy groups to scrutinize the source of the funds or donations received, citing Ablyazov's use of allegedly embezzled BTA Bank funds to underwrite PR campaigns to minimize Ablyazov's fraud and to present Ablyazov as a political dissident. An example of such efforts is through the Open Dialogue Foundation. The Open Dialogue Foundation maintains the website mukhtarablyazov.org, which credits the content as "co-created by the family members of Mukhtar Ablyazov."

INTERPOL issued a Red Notice arrest warrant for Ablyazov, which was basis for his arrest by French authorities in 2013. Interpol said Ablyazov was wanted in Russia on separate charges for "large scale fraud,” money laundering and document forgery. Interpol withdrew the red notice in July 2017.

It has been argued that BTA Bank “threatened to dominate the other Kazakh banks – banks that Nazarbayev controlled” and that the bank's forced nationalization in 2009 was part of an effort by Nazarbayev “to dispose of Ablyazov.”

The wife and daughter of Muktar Ablyazov were deported by Italy in May 2013 for allegedly staying in the country illegally. They were found to have false Central African Republic passports.

On 24 December 2013, a representative of the Kazakh Ministry of Foreign Affairs announced a change in the restriction of liberty measure for Alma Shalabayeva and the withdrawal of her prohibition from leaving Almaty. Shalabayeva and her daughter, Alua received their passports and left Kazakhstan.

From July 2013 to December 2016, Ablyazov was detained by French authorities, as Russia sought Ablyazov's extradition from France, but Ablyazov argued that extradition would place him at risk of ill-treatment and an unfair trial. Human rights groups Amnesty International and Human Rights Watch, as well as many members of the European Parliament, wrote in opposition to extradition of Ablyazov. In 2015, a French court in Lyon issued an extradition order. However, in December 2016, France's highest administrative court, the Conseil d'Etat, canceled the extradition order, on the ground that Russia had a political motive in making the extradition request. Ablyazov was released from the Fleury-Merogis prison.

In early 2012, Kazakh authorities sought to implicate Ablyazov in an alleged terror plot. One report suggested that an “obvious reason for trying to nail Ablyazov” was that “unlike other political figures in exile, he has a presence inside Kazakhstan through his links to an opposition group and local media outlets.” The accusation was, according to this report, “designed to tarnish his reputation – and that of his associates, too – in the eyes of the international community,” as well as to provide “a useful distraction from the embarrassment which the government suffered after violence in the western town of Janaozen in December [2011], in which its police force is accused of opening fire on protesters, killing 14 and injuring over 100.” The report said that “authorities seem dead set on eliminating Ablyazov’s capacity to exert any influence in Kazakstan (sic).”

In November 2012, a U.K. court ordered Mukhtar Ablyazov to pay £1.02 bln ($1.63 bln) plus interest. The court also ordered "new post-judgment asset-freezing orders be made against Mr. Ablyazov in an unlimited sum and new asset-freezing orders in relation to certain other defendants."

The UK High Court issued an arrest warrant for Ablyazov on February 16, 2012, and a second arrest warrant July 25, 2019.

In 2012, a British judge ordered Ablyazov imprisoned for purportedly lying in court about his financial assets. Shortly thereafter, Ablyazov left Britain. It was charged that he exited the country in order to avoid imprisonment. His lawyers, however, said that he left because he had received a death threat. The lawyers further maintained that Ablyazov “did not embezzle the $6 billion claimed by the Kazakh government, but restructured the bank's holdings in order to protect them from precisely the kind of government takeover that took place in 2009.”

In a May 2011 letter, Ablyazov accused Nazarbaev and his advisor Bulat Utemuratov of being the real owners of a 48.73% share in Kazzinc, a firm that Glencore International was planning to buy at the time. Ablyazov wrote that “in 2005-2009, when Mr. Utemuratov was blackmailing me on behalf of” Nazarbaev, demanding a share in BTA Bank, “he asked me to transfer the stocks to the companies that control KazZink now.” Ablyazov said that he had testified to this effect in a London court. Ablyazov was granted asylum in the UK in July 2011, a recognition that he would face political persecution if sent back to Kazakhstan. Kazakhstan's request for his extradition was ignored. According to the Daily Telegraph, the Kazakh government threatened to punish British firms by awarding lucrative contracts to China if the UK granted Ablyazov asylum.

The Supreme Court of Seychelles ruled on 2011 October 13 that the English Receivership Order from the English High Court proceedings between BTA Bank and Ablyazov was enforceable in the jurisdiction of the Republic of Seychelles. Ablyazov made two appeals: the first that the judge erred by wrongly applied law and that Ablyazov was not present and thereby denied the right to fair hearing. The second appeal that eleven companies are exempted in the Seychelles from reach of the receivership order enforcement. Each of the appeals were dismissed.

While in Britain, Ablyazov maintained close ties to opposition media in Kazakhstan. RFE/RL has noted that in 2011, the broadcaster K+ and the newspapers Vzglyad and Golos Respubliki, along with other private Kazakh media with ties to Ablyazov, “gave full-scale coverage to the bloody police crackdown on striking oil workers in the western city of Zhanaozen.” Not long after, Kazakh courts ordered these media outlets closed, along with the opposition Algha party, headed by Avladimir Kozlov, an Ablyazov ally, who was sentenced to a long prison term. The Nazarbaev government reportedly considered Ablyazov to be implicated in these media outlets' critical coverage.

Global accounting firm PriceWaterhouse Coopers auditors discovered a $10 billion shortfall on the bank's books that led to the bank's bankruptcy and discovery of largest financial fraud attributed to Ablyazov in JSC BTA Bank v Ablyazov. In 2010 a US bankruptcy judge granted BTA Bank Chapter 15 protection while it worked to restructure $11.6 billion owed to foreign creditors as a result of loans made while Ablyazov was chairman.

In October 2010, Ablyazov lost a legal fight to prevent his assets from being subject to a receivership order. The ruling came after Justice Teare stated that Ablyazov “cannot be trusted” not to dissipate his assets prior to trial.

In September 2009, Kazakhstan's sovereign wealth fund, Samruk-Kazyna, injected significant funds into BTA in an effort to keep the bank solvent, effectively becoming its majority shareholder. Shortly before Samruk-Kazyna's intervention Ablyazov fled Kazakhstan to London.

24 March 2009 BTA Bank launched legal proceedings against Ablyazov in the UK High Court shortly after his arrival in London.

Ablyazov argued, in his defense, that the takeover of BTA Bank by Samruk-Kazyna in February 2009 was “the culmination of the campaign by President Nazarbayev and his allies to wrest ownership and control of [BTA] from [Ablyazov].” Judge Teare reasoned that BTA's bank's nationalisation and debt restructuring created a legal and fiduciary duty to its Western creditors to recover missing assets.

In 2008, BTA Bank was the largest commercial financial institution in Kazakhstan, with internal reserves allowing for cooperation with foreign and domestic owners of the shares. At the same time, BTA Bank was the largest creditor of the Kazakh economy – the bank owned about 30% of all the loans granted to legal entities.

In response to pressure from the international community, including Amnesty International and the European Parliament, he was released in May 2003 after only serving ten months, on the condition that he renounce politics.

Ablyazov moved to Moscow in 2003 to rebuild his business ties and in 2005 became the Chairman of the Board of Directors of BTA Bank.

After his release from prison, Ablyazov reportedly spent “millions of dollars funding opposition groups and independent media.” RFE/RL has quoted Yevgeny Zhovtis, head of the Kazakhstan International Bureau for Human Rights and Rule of Law, as saying that “Nazarbayev to a certain extent felt betrayed” by Ablyazov and the others, given that “he thinks that he provided them the space to become wealthy, to become well-known, to make a career in state service or in business, and they challenged him. When he pardoned Ablyazov in 2003 and allowed him to return to business in exchange for a promise not to be involved in politics and then found out that he was again involved in politics, of course Nazarbayev felt betrayed twice.”

In July 2002, as one of the main leaders of the QDT, Ablyazov was convicted of “abusing official powers as a minister” and sentenced to six years in prison. Also sent to prison were his fellow would-be reformers and former Nazarbaev proteges Galymzhan Zhakiyanov and Altynbek Sarsenbauyly.

In November 2001, Ablyazov and other colleagues, including fellow disenchanted proteges of Nazarbyaev, co-founded the Democratic Choice of Kazakhstan (QDT), an opposition political movement that challenged the Nazarbayev regime. The QDT included a combination of existing politicians and major businessmen and called for the decentralisation of political power, a strong legislature, and an independent judiciary to balance the power concentrated in the executive branch. This opposition initiative, according to RFE/RL, “quickly drew the wrath of the regime.”

In 1998, as head of KEGOC, Ablyazov was named Minister for Energy, Industry, and Trade.

In 1998, together with a consortium of Kazakh investors, Ablyazov acquired a loan to buy the shares in Bank Turan Alem in a privatization auction for $72 million. He later paid back the loan. The bank later came to be known as BTA Bank. Ablyazov served as the Chairman of the Board of Directors of BTA Bank from 2005 to 2009. BTA Bank increased its loan book 1,100 percent between 2003 and 2007 and held a loans to deposits ratio of 3.6 to 1 in 2007.

In 1997, Ablyazov was appointed as head of the state-owned Kazakhstan Electricity Grid Operating Company. KEGOC was a company close to bankruptcy at the time of his appointment as its head. In one year, he managed to make the state-owned company profitable.

In 1992, Ablyazov started his business by supplying all the regions of Kazakhstan with products such as salt, sugar, flower, matches, tea, chocolate, and medicine. In order to run this business, Ablyazov established Astana Holding in Kazakhstan, a multi-sector private holding company, which established and consisted of: Astana-Sugar, Astana-Food, Aral-Salt, The Shymkent Pasta Factory, Astana-Medical Service, Astana-Motors, Astana-Interotel, Astana-Bank, Trade House Zhanna (furniture).

Ablyazov started working during the fall of the Soviet Union and the start of Kazakhstan's Independence. His first job was the buying and selling of computers and copying machines. In 1991, Ablyazov registered his first company and called it "Madina," which is the name of his first daughter.

In 1990, Ablyazov was enrolled in postgraduate studies in the Moscow Engineering and Physics Institute. For that reason, he was fired from his role as a junior researcher at the Kazakh National University.

Ablyazov's first interests in politics was in 1987 when he engaged in social activities and founded a political club, believing that the Soviet Union wasn't being developed properly at the Kazakh National University where he was a junior researcher. The club attracted young people, political scientists, and philosophers. There, after leading a discussion, Ablyazov was accused of spreading anti-Soviet propaganda and was, along with his peers, detained the following day by the KGB although Ablyazov suffered no consequences due to the fact that Gorbachev's Perestroika reforms in allowing greater political freedom was already beginning to take shape at that time.

At the age of 17, Ablyazov wanted to become a theoretician and a professor. He attended the Alma-Ata State University where he then later transferred to Moscow Engineering Physics Institute during his sophomore year. There, Ablyazov graduated in 1986 and earned a degree in theoretical physics. After graduating, he worked as a junior researcher at the Kazakh National University.

Mukhtar Kabyluly Ablyazov (Kazakh: Мұхтар Қабылұлы Әблязов , Muhtar Qabyluly Ábliazov; born 16 May 1963) is a former chairman of Bank Turan Alem (BTA Bank), co-founder and a leader of the unregistered political party Democratic Choice of Kazakhstan (QDT). He was also the former head of the state-owned Kazakhstan Electricity Grid Operating Company (KEGOC) as well as briefly holding the position of Minister for Energy, Industry, and Trade in Kazakhstan.

Ablyazov was born in the village of Vannovka in the South Kazakhstan Region, at the time when Kazakhstan was part of Soviet Union. His father, Qabyl Ablyazov, (born 1935), worked as an engineer and was a teacher at a technical school. His mother, Rauza Tolebergnova, (born 1940), was a librarian. As a kid, he loved reading books and playing chess. Ablyazov was taught at a Russian-speaking school named Lomonosov Regional School in his hometown where he excelled in every class. He also partly worked as a loader in a rural farm at night.