Kazakhstan is becoming an important partner of the European Union today, not only in Central Asia, but also throughout the former Soviet Union.
The growing influence of Kazakhstan on the world stage is related to the country’s position at the junction of Europe and Asia. There is a huge economic potential, reserves of oil, gas, uranium and rare earth metals. But also, most importantly, the human potential in the form of an educated nation, which is strengthening its scientific base.
Since gaining independence in 1991, Kazakhstan has been striving to build a multi-vector foreign policy, balancing between various global players: Russia, China, the European Union and the United States. This allowed the country to ensure its internal stability while playing an important role in global politics and economics.
However, despite efforts to balance foreign relations, Kazakhstan remained closely linked to Russia, both politically and economically. These ties have deep historical roots dating back to the era of the Russian Empire and then the Soviet Union, when Kazakhstan was an integral part of these powers. After the collapse of the USSR, Kazakhstan became independent, but Russia’s influence continued to be significant, especially in the fields of economy, energy and security.
Here we consider one of the figures with which external forces tried to destroy the young Central Asian country in the 90s.
This is the so-called “reformist” of the 90s, with, as reported by EU Reporter, the past of the Soviet KGB, Akzhan Kazhegeldin.
Akzhan Magzhanovich Kazhegeldin is a Kazakhstani politician who served as Prime Minister from October 1994 to October 1997. During this period, he initiated large-scale economic reforms, including the privatisation of large industrial enterprises.
One of the significant episodes of his premiership was the privatisation of the Karmet metallurgical plant, which is estimated to cost about 10 billion US dollars.
In 1995, ‘Fest Alpina Butya’ won the tender for the acquisition of Karmet, but the deal was not completed, and the company passed to other owners. In total, five large state-owned companies were privatised in Kazakhstan at that time, and in subsequent years the privatisation process continued, affecting hundreds of state-owned enterprises.
And here Akzhan Kazhegeldin played an important role. According to some Ukrainian media, Russian oligarchs played a major role in these reforms, which gave rise to rumours about possible connections of Akzhan Kazhegeldin with foreign Russian political and business circles.
After resigning in 1997, Kazhegeldin became an opposition politician, leading the Republican People’s Party of Kazakhstan (RNPK). In 1998, he planned to run in the presidential election, but was barred from participating. In 1999, corruption charges were brought against him, and he was put on the international wanted list.
As a result, the so-called privatisation in Kazakhstan has actually turned into the sale of Kazakhstan’s resources to external forces. During Kazhegeldin’s premiership, Kazakhstan’s economic dependence on foreign country only intensified, which also became a reason for political criticism.
Kazhegeldin’s foreign real estate:
In 2016, the website of Radio New Zealand published the results of a journalistic investigation “The Panama Papers: The Link between New Zealand and Kazakhstan,” which stated that the family of former Kazakh Prime Minister Akzhan Kazhegeldin was using a New Zealand company to conceal ownership of their London home.
The investigation says that published documents from the well—known Panamanian law firm Mossack Fonseca indicate that the exclusive house in London’s Belgravia district, one of the most expensive areas in the world, located near Buckingham Palace, belongs to Zarek Investments Limited, owned by Akzhan Kazhegeldin’s daughter Diana Battaglia. Kazhegeldin himself has the same address listed in the British electoral rolls.
Zarek Investments Limited was then registered in the British Virgin Islands and is managed by the New Zealand law firm Cone Marshall, owned by renowned lawyer Jeffrey Cone.
A copy of the British passport of Diana Battaglia, daughter of Akzhan Kazhegeldin, which was published in the Panama Papers.
Diana Battaglia, who holds British and Venezuelan citizenship, paid more than 3 million pounds for this house in 2003. At that time, Zarek Investments Limited was operated by an asset management company registered in the British island of Jersey. Later, another link was included in this complex structure — the Sintash Foundation, the main beneficiary of which is Diana Battaglia’s mother, Natalia Kazhegeldina.
So did the former Prime Minister of Kazakhstan amass such a fortune?
The Trojan Horse in the western courtyard:
Having received a quiet asylum in the UK (the British authorities should consider the expediency of granting asylum to major corrupt officials), Kazhegeldin is once again trying to interfere in the politics of Kazakhstan.
Kazhegeldin has often been accused of acting in the interests of Kremlin, contributing to the strengthening of Russian economic power in Kazakhstan.
In his youth, Kazhegeldin studied in special institutions that trained personnel for the Soviet special services. KGB agents often joke that there are no “former” employees among them.
Therefore, Kazhegeldin’s rhetoric in favour of economic reforms and alleged support for Western initiatives in subsequent years, as well as participation in international forums where he criticised the Kazakh leadership, raise doubts about the truthfulness.
Many point out that his pro-Western rhetoric could serve as a cover to advance foreign’s interests, and his personal ties to some oligarchs of the time reinforce these suspicions.
Kazakhstan in an effort to strengthen its Independence:
In recent years, Kazakhstan has been actively trying to revise its foreign economic and political guidelines, especially in the light of new challenges such as Russia’s war against Ukraine. Although the country remains a part of a number of international organisations, Kazakhstan is increasingly demonstrating a desire for independence in decision-making. In particular, the refusal to support Russia’s policy towards Ukraine has become an important signal that Kazakhstan is ready to seek a more independent path of development.
New economic and political challenges require Kazakhstan to develop a strategy that will allow the country to maintain its independence and at the same time continue to develop relations with neighbouring countries, including Russia. It is important that Kazakhstan continues to strengthen its ties with other global centres of influence and step up internal reforms that will help ensure economic stability and political independence.
Kazakhstan, striving for independence and sovereignty, is facing many challenges. The role of Akzhan Kazhegeldin in this process remains controversial, and his figure continues to arouse interest both in Kazakhstan and abroad. The history of economic reforms in the country associated with his name is a vivid example of how political and economic transformation can be used to maintain the influence of external forces.
Kazakhstan continues its path to independence, balancing between different interests and global players. Russia’s role in this process remains significant, but Kazakhstan’s desire for greater independence and stability in the international arena is becoming increasingly evident.
In this regard, Europe should consider giving more support to the Kazakh authorities in investigating and extraditing fugitive “reformers” who are trying to rock the boat of stability in Central Asia.
Main Image: Kazakhstani Initiative on Asset Recovery
