One of the traits of the Kazakh big business (especially if it is controlled by some of Nursultan Nazarbayev’s closest relatives and allies) is a clear intention to stay in the shadows of the information field. Of course, the businessmen do not always manage to do so successfully.

If it is an international enterprise or its headquarters borrow money and list their shares and securities on the Western markets, they have to open themselves to the public one way or another. But even in such cases, many of those who, in Kazakhstan, are called «oligarchs» and «the powers behind the throne» do manage to hide in the shadows by putting forward their trusted frontmen.

Here are some examples — Alexander Klebanov represents the business-interests of the head of the Senate of the Kazakh Parliament and the Leader of the Nation’s eldest daughter Dariga Nazarbayeva in the communication field and in some other projects; Kenes Rakishev represents the interests of Chairman of the Atameken National Entrepreneurs Chamber and the Leader of the Nation’s son-in-law Timur Kulibayev in various business-projects and operations.

We believe there are several reasons for such «modesty» on the part of the oligarchs.

First, not attracting attention is safer and less worrying.

Second, the total volume of big enterprises controlled by the First President’s closest relatives and allies is so huge that making this information public would cause a massive shock among the Kazakhs. Most likely, it would result in the demand to nationalize or expropriate them on the part of the radicals.

The third reason for the «modesty» is of a business nature — this way, it is easier to penetrate new markets and take up dominant positions there.

Case in point — Bulat Utemuratov, once the years long aide of the First President of Kazakhstan and the Head of the Department of Presidential Affairs, a trusted man of Nursultan Nazarbayev and his family and their assets holder in Kazakhstan and abroad.

According to Forbes-Kazakhstan, Mr. Utemuratov is worth US3.4 $ bln; he holds the second spot on the list of the richest Kazakhs and the third — on the list of the most influential businessmen. If we are to believe Forbes-Kazakhstan, then (quoting):

«Bulat Utemuratov owns 87,77% of ForteBank JSC joined in the spring by bank Kassa Nova. The businessman also owns 100% of Media Management Systems LLP and Direct Technology Company LLP.

Through the Vernyi Kapital Group, he controls 25% of KaR-Tel LLP and 49,9% of Sky Mobile Ltd. (Beeline communication providers in Kazakhstan and Kyrgyzstan, respectively), 65% of the RG Gold gold-mining enterprise, 100% of the Informburo.kz information-analytical internet-portal, 80% of television company 31 Channel, 50% of media-advertising operator Video International Kazakhstan, hotels Ritz-Carlton in Nur-Sultan, Vienna and Moscow, Rixos Borovoe in the Akmola region, as well as the Burger King franchise in Kazakhstan, the Global Development company, the Yuzhno-Kyrgyzskiy Cement company, 40% of Sky Service LLP that owns the Say-Arka airport in Karaganda.

Utemuratov owns 1,16% of Glencore Plc».

Meanwhile, based on the information provided by our insiders, Bulat Utemuratov has a lot of various business-projects in Kazakhstan, however, he is trying to distance himself from them. And, to a large extent, he manages to do so since he is using the mechanism described above — putting forward a frontman.

Previously, for a number of years, this role had been performed by famous Kazakh entrepreneur Nurlan Smagulov (#6 on the country’ most influential businessman list and #10 on the country’s richest businessmen list according to Forbes-Kazakhstan). But then, he got stronger and settled into his own business-orbit.

Someday, we will tell you the story of Nurlan Smagulov and Bulat Utemoratov’s «divorce» that was overlooked by the Kazakh press and civic society even though it was rather dramatic and entertaining at the same time.

Currently, according to our sources, the position of Bulat Utemuratov’s frontman is occupied by businessman Farrukh Makhmudov who, by his own admission, manages to complete all his undertakings and does it so successfully that the rest can only sit their envying his energy and achievements.

Presently, Mr. Makhmudov serves as the Chairman of the Board of Directors of Orbis Kazakhstan that, according to the information on its website, is a multi-business company founded back in 2001; it incorporates dozens of industries and organizations of different economic fields and employs more than 5 thousand people across the country.

Why do we think that it is important to know who stands behind the oligarchs?

Because, in reality, their presence in the economy is much greater than it seems at the first glance. First of all, like in the case presented above, they participate in it directly (albeit through other people); second of all, the people who are close to them and dependent on them have their own businesses.

In other words, we believe that the real level of the economy monopolization by the oligarchs cannot be estimated without taking into consideration these data.