By Emma Collet in Alma-Ata
Kazakhstan keeps selling seized properties and high-end items that were confiscated from members of the Nazarbayev family, who thrived under disgraced ex-president Nursultan Nazarbayev’s leadership for over thirty years. However, the efforts by President Kassym-Jomart Tokayev’s government to reclaim assets considered illicitly acquired during this period known as the "Elbasy" or “Leader of the Nation” epoch, have had quite varied outcomes.
For sale: A luxurious 2,800-square-meter estate situated in Astana, the capital city. Priced at KZT 1.8 billion ($3.5 million).
On February 25, the sale of this property through an auction did not succeed eventually. Maybe it was due to the controversial past of the prior occupant that deterred possible purchasers. After all, who would be eager to acquire the ex-residence of Karim Massimov, once the chief of the National Security Committee (KNB)? He received an 18-year sentence for orchestrating the "Bloody January" disturbances which convulsed Kazakhstan early in 2022, resulting in at least 200 fatalities and numerous injuries among many others affected.
The estate belonging to Massimov, who acted as the right-hand person to Nazarbayev, wasn’t the initial property linked to one of the former president’s associates slated for a government-led auction. Not long ago, the extravagant 18-story 'Duman' hotel in Astana, which belongs to Nazarbayev's oldest child, Dariga Nazarbayeva, hit the market for potential buyers. With an opening bid set at KZT 14 billion ($27.5 million), this asset is scheduled to be sold off come June.
In the Ushkonyr Valley, located in the southern part of the country where Kazakh President Nursultan Nazarbayev was born, numerous hectares of privately owned land previously belonging to his sibling, Bolat Nazarbayev, were seized by the government. These properties have slowly been listed for sale starting from December.
The pages of state-run media outlets have been inundated with images and prominent headlines detailing various assets set for auction, eager to highlight the excessive wealth accumulated by individuals associated with Nursultan Nazarbayev during what officials call "Old Kazakhstan." The items up for sale also include opulent vehicles and jewelry encrusted with gemstones—though the previous owners' identities remain undisclosed in these instances.
The confiscation of assets and properties, whether located domestically or internationally, is carried out by the state’s Restituted Assets Management Company. This entity was established in September 2023 following the enactment of a new legislation titled "On the Restitution to the State of Illegally AcquiredAssets".
Supervised by a committee led by the attorney general, amounts acquired through direct means or via subsequent sales of confiscated properties have been directed into a dedicated account managed within the finance ministry. This entity’s role includes disbursing resources for community-focused endeavors like building schools or hospitals. Currently, this holding firm holds an amount equivalent to KZT 300 billion (approximately €570 million).
Following the January 2022 disturbances, President Tokayev discussed the necessity to "remove oligarchs" from the economy. These widespread protests stemmed from a broad sense of dissatisfaction with the dominant authoritarian and corrupt regime. Once the demonstrations were forcefully suppressed by law enforcement agencies, an ongoing battle for control ensued internally between the faction led by Nazarbayev and that supported by Tokayev and his allies.
The exact circumstances surrounding the onset and escalation of the unrest remain somewhat hazy. No comprehensive independent inquiry has taken place yet. Despite this, Tokayev leveraged this dark chapter to remove numerous government employees who remained under the sway of his predecessors.
The promotion of the "New Kazakhstan" narrative, which portrays the nation as more equitable and democratic, has made the retrieval of illicitly obtained assets a key policy objective. Although carefully managed and orchestrated by the government, this effort to recover these assets is presented as addressing public demands for greater social justice. However, inconsistent outcomes pose challenges for those promoting this agenda.
The Anti-Corruption Agency of the Republic of Kazakhstan (Antikor) asserts that they have recuperated over €2.3 billion in misappropriated funds since 2022; however, experts argue this amount is negligible, noting that Nursultan Nazarbayev's wealth is estimated to be above $8 billion.
The issue lies in our inability to track where these funds are being directed or even ascertain the actual amount that has been recovered," states Murat Danyar, who leads Transparency International in Kazakhstan. "While we do come across specific figures mentioned occasionally in news reports, that’s as far as our knowledge goes. The process for recuperating illicit wealth remains entirely opaque.
Not public
The list of individuals being investigated for suspicious assets is not accessible to the general public. While some names do surface in the media, this typically occurs due to their association with the Nazarbayev family. This linkage allows observers to easily distinguish between 'old' and 'new' powers within the system, according to an independent legal expert specializing in finance.
The initial moves toward what could be termed 'emotional' justice involved sanctions against relatives of Nursultan Nazarbayev. In 2022, a firm associated with his youngest child, Aliya Nazarbayeva, faced scrutiny over allegations of embezzling public money. At the same time, financial investigators took a close look at the holdings managed by her uncle, Bolat Nazarbayev.
Kairat Satybaldy, who is President Nursultan Nazarbayev's nephew, received a jail sentence due to fraud involving state-owned telecommunications and railroad firms; he reportedly paid the government €1.5 billion for his release. In 2022, Kairat Boranbayev was handed a six-year prison term after being found guilty of stealing funds from QazaqGaz. He compensated the country with approximately €200 million along with relinquishing ownership of numerous enterprises back to the state.
Nevertheless, Boranbayev remains in charge of multiple groups, and his standing has been restored since he funded a prestigious modern art center in Almaty.
The Nazarbayev Fund, which supports Nazarbayev University and Nazarbayev Intellectual Schools, continues to be safeguarded by a specific legislation ensuring complete independence and preventing government interference in its operations.
Timur Kulibayev, who is married to one of Nursultan Nazarbayev’s daughters, continues to be a co-owner of Kazakhstan's biggest financial institution, Halyk Bank, as well as a key figure in the nation's energy industry.
"Sure, everyone’s discussing the confiscation of Bolat Nazarbayev's property or Massimov's estate," remarks Orazaly Erzhanov, a previous political figure and leader of the Elge Qairatu organization. This group advocates for efficient asset recovery efforts and has extended assistance to various asset recovery panels multiple times. "But such talk isn’t significant!" he adds.
What truly matters is Nazarbayev along with his daughters and the energy firms involved... None of the tycoons in these industries have taken action. Why? Because the apprehension over fresh protests has vanished. The economic elite now sense a renewed sense of immunity.
Tokayev’s criticism of the previous administration’s unfair practices has become less pronounced, and he appears more willing to strike bargains with those associated with Nazarbayev who have accumulated wealth. "Everything is quite unclear and highly confidential, which explains their continued involvement in the economic sphere," according to Orazaly Erzhanov.
Bloomberg In February, it was reported that 58-year-old Kulibayev, estimated to have a net worth of approximately $3.5 billion, is engaged in discussions with the government to potentially pay around $1 billion to the state as part of an ongoing governmental probe into assets amassed during President Nursultan Nazarbayev's tenure.
Should an agreement be reached, Kulibayev, would provide a mix of payments and investments, two people familiar with the negotiations were cited as saying, adding that the payout would not include any admission of fault.
A spokesperson for Kulibayev chose not to provide direct comments to the news outlet regarding the issue since it pertained to governmental matters. However, they stated emphatically that referring to any payments as part of an asset recovery process was entirely inaccurate. The spokesman went on to say that over time, Kulibayev has made substantial contributions to Kazakhstan’s economic and societal advancement and "is actively collaborating with the administration to determine ways to further expedite this growth in the future," he noted.