The Baymishev Show — 2

We are continuing our saga about local and foreign investors fighting for the Vavilonskoye ore field in the East Kazakhstan region. Recently, we have learned some curios and, one might even say, facetious details about the matter. 

But first, let is remind you how our latest publication on the subject (The Baymishev Show) begins (quoting) –

«Kazakhstan’s business-habits and life in general are, after all, much more diverse and interesting than even worldly-wise local and foreign investors think».

Now then, the latest information provided by our insiders confirms this thesis.

We have received an audio recording of a conversation between the two «heroes» of this high-profile story, head of MTS-Ertis LLP Ryskali Dzhakishev and Erzhan Kumarov, the chair of the Kazakh branch of the Norton Rose Fulbright global law firm. On the recording, they are discussing the sale of MTS-Ertis’ shares. 

Among other things, they are talking about the conditions upon which Vice Minister of Industry and Infrastructural Development of the Republic of Kazakhstan Ruslan Baymishev has agreed to permit new investor Tleukabyl Abdulin to join the project.

Since we cannot confirm the authenticity of the recording, we are not going to report on its content. We will say, however, that it may very well send Baymishev to the defendant’s bench (provided the content is verified by the authorities).

Still, we will allow ourselves one information leak. One of the conditions stipulated by the Vice Minister of Industry and Infrastructural Development upon which he would agree to meet the needs of Mr. Dzhakishev and Mr. Kumarov was putting a stop to releasing further publications on!

As for Mr. Abdulin who, as you recall, occupies the post of the head of Cooper Kz Ca supervisory board, has interests in the oil business and is thought to be Kayrat Satybaldy’s henchman (the latter used to serve as the deputy chief of the NSC and is Nursultan Nazaryayev’s nephew), it turns out he is to receive a 51% participation interest in MTS-Ertis LLP.

By the way, allegedly, Timur Toktabayev (Baymishev’s predecessor) had «approved» the sale of 10% of SPK Ertic JSC to a private owner.

Considering all this, it does not seem random that the Ministry of Industry and Infrastructural Development chose to prolongated the duration of contract No. 4473 to carry out the polymetallic ore explorations thus confirming MTS-Ertis’ right of subsurface use. In view of this, we would like to remind you that (quoting from «The Baymishev Show») –

«According to our insiders, Baymishev maintains official and unofficial contacts with the two key persons — Chairman of MTS-Ertis LLP A. Khatkin and Chairman of SK Atrium LLP Zh. Dzhakishev. Allegedly, both of them intend to obtain the right to sell 90% of MTS-Ertis’ ownership capital to SK Atrium from the Ministry of Industry and Infrastructural Development.

Our sources say that, in this matter, the parties are being vigorously assisted by certain Erzhan Kumarov, the chair of the Kazakh branch of the Norton Rose Fulbright global law firm. Obviously, he is doing this not without his own motives but for a solid reward (allegedly amounting to 300 mln tenge). They say that the money is to be transferred not to the branch’s account but to be paid to Kumarov personally».

At this point, we cannot forecast how the story is going to unfold. On one hand, we have information that a criminal case against Erzhan Kumarov has already been opened albeit we do not know what the grounds are. Although we do allow for the possibility that he has been accused of sending letter No. 037/2020 to the authorities in which he, on behalf of Babylon Holdings B.V., informs on withdrawing from the Vavilonskoye project without getting the shareholders’ approval.

On the other hand, the net of interests in this case seems to be too complex.

Apart from that, as our source has informed us, Dzhakishev’s total expenditures on resolving his issues at the Ministry of Industry and Infrastructural Development have surpassed a million dollars. Therefore, he is doomed to fight to the bitter end.

So, in conclusion, let us quote our previous statement -

«Now we are curios to see what comes next.

We are not to predict the story’s turns and twists as well as its finale for is would be the bathos of stupidity. However, it looks like the foreign investor’s plans and hopes will be outweighed by the Kazakh realia. This makes us presume that President Tokayev’s intention to conduct political reforms as well as the abundance of the governmental plans will encounter the problem called „it was very smooth on paper, wish we had a bloody grader“.

And we have no doubt that, in the absence of „the grader“, „the paper“ will take a severe drubbing».


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