A gazprom manager profited from a key scheme from the building of a multibillion-dollar gasoline pipeline between central asia and asia, according to documents seen because of the financial days.
The documents indicatethat staff and experts employed by timur kulibayev created a scheme for kazakh billionaire to receive at least tens of vast amounts from contracts regarding the vast project.
Mr kulibayev, who has offered in the russian power leaders board since 2011, could be the son-in-law associated with previous kazakh president and has wide-ranging business interests, from financial to mining and real estate. among the most effective officials in the united states, he oversaw hawaii companies that awarded contracts to create the pipelines across kazakhstan.
Emails delivered between 2008 and 2014 and released by a whistleblower have step-by-step explanations of a setup so it seems will allow mr kulibayev to receive a share associated with profits from pipeline contracts issued to etk, a business owned by russian businessman alexander karmanov.
Underneath the system, etk would buy pipes from flowers in ukraine and russia. but first it could sell those same flowers the metallic to make the pipelines at a big mark-up from the cost it had paid for the steel.
Agreements seen by the ft tv show that an etk organization in singapore decided to get steel from jiangsu shagang selection of china at $935 a tonne also to offer metal to your russian pipeline maker tmk for $1,500 a tonne. tmks contract envisages a total outlay of around $200m, which compatible a gross profit of $75m for etk.
However, the papers seen by the ft claim that most of that cash had not been destined for mr karmanovs business however for mr kulibayev.
They reveal information on a corporate structure built to channel the profits from the steel mark-up through businesses in singapore together with united arab emirates and finally to mr kulibayev himself. emails and a powerpoint presentation indicatemr kulibayev was to receive 70 percent associated with the profits, a cut that could are making him $53m with this one deal alone.
In a single mail, a specialist sent bills to mr kulibayevs organization for completing the job to create the plan.
The e-mails look toshow that, to make certain that this arrangement cannot be changed without their contract, mr kulibayevs staff recommended that a nominee of their be given a risk in etk that could confer control over company decisions.
In october 2012, a worker at etk emailed mr kulibayevs representatives to express that mr karmanov had yourself decided to the proposal. emails among mr kulibayevs advisers expose the name regarding the nominee as murat balapanov, a kazakh businessman.
Russian corporate records reveal that on december 21 2012, mr balapanovs name ended up being recorded in public areas filings as a unique shareholder in etk. his share ended up being 0.00001 percent of etks equity. he was additionally called president regarding the organization. mr balapanov cannot be achieved for remark.
Mr kulibayevs lawyers stated that he never had any interest or share in almost any etk entity, directly, ultimately or via any nominee arrangement or similar plan.they included that mr balapanov hadn't acted as mr kulibayevs nominee and reported that mr balapanov had never ever held a stake in etk, despite public record information showing which he has.
In reaction to concerns through the ft in regards to the apparentscheme to divert agreement earnings described in leaked email messages, mr kulibayevs lawyers said he has never ever been taking part in any of the tasks described. they said the suggestion that 70 percent of various profits were funnelled back once again to an entity of our consumers based in singapore is untrue.
In communication using ft, their lawyers additionally claimed he had been the prospective of a disinformation promotion. but the emails that outlinethe pipeline system originate from a substantial cache released by a whistleblower. they contain several documents that corroborate one another and tend to be further sustained by corporate documents from russia, singapore and the british. the ft is posting a selection of the documents.
The asia gas pipeline project had been part of a grand undertaking that accelerated a move of financial energy from western to east.
In august 2007, president nursultan nazarbayev of kazakhstan ended up being accompanied by their chinese counterpart, hu jintao, in kazakh money astana to announce new pipelines that could carry gas from main asia, very long mostly sold to european countries, to asia.
Built jointly by kazakhstan and asia, these pipelines, all since finished, would stretch above 3,000km and start to become funded with chinese condition loans. 1st two lines would cost $7.5bn, with a 3rd to follow along with for some $3bn and a fourth next.
Among the largest champions inside bonanza of agreements pertaining to the pipeline ended up being a russian labeled as alexander karmanov. back the 1990s, he was the proprietor associated with the daydreams strip club, well-liked by post-communist moscows new-rich. reports of his career subsequently provide few clues to just how he's got progressed to-be listed by forbes among russias master technicians, anyone who has benefited most handsomely from government contracts.
Somebody who knew mr karmanov if they both done agreements for transneft, russias condition oil transportation group, described him as a self-made man but one who understands and endless choice of individuals inside energy structures. small information on these contacts features emerged, though he's mentioned their relationship with arkady rotenberg, a fellow king contractor that has been focused for people sanctions on the kremlins inner circle. mr karmanov sponsored the st petersburg judo club established by mr rotenberg, an old sparring lover of vladimir putin, who had been the groups honorary president.
Despite never ever having built one factory, mr karmanov established himself as one of the dominant numbers in a very profitable market: providing the metal pipelines when it comes to pipelines that have been in high demand during russias energy increase regarding the 2000s.
The asia gasoline pipeline project was the possibility for mr karmanov to conquer new areas, and conquer he did. email messages seen by the ft have commercial agreements showing that between 2008 and 2012 his organizations won steel pipeline contracts the project worth at the very least $370m and maybe three times that amount. in addition they won contracts well worth about $1.5bn to trade the gas and oil that kazakhstans pipelines carry.
One man towered across kazakh energy industry where mr karmanov prospered. timur kulibayev had risen through kazakhstans condition power company, then became first deputy president and, last year, president for the $80bn sovereign wealth fund that oversaw all says company passions, like the asia gas pipeline project. by the period he had been currently a billionaire in his very own right. therefore had been their spouse dinara child for the kazakh dictator, mr nazarbayev.
Mr kulibayevs influence broadened beyond kazakhstan. and his part at gazprom, the russian condition gas company at the center of mr putins power community, their father-in-law had been a key ally associated with the russian leader. mr kulibayev came to western interest as he had been uncovered while the mystery buyer just who in 2007 paid 3m over the number price buying sunninghill park, the royal property the queen had offered prince andrew as a marriage present. he's got additionally experienced money-laundering allegations in a swiss case which was ultimately fallen.
Mr kulibayev left the kazakh sovereign wide range investment following an outcry throughout the massacre of striking oil workers by security forces in december 2011. by then, mr karmanovs etk group had currently obtained contracts to supply the initial two stages associated with asia gas pipeline, an etk planning document attached with among leaked emails shows. agreements concerning the subsequent stages emerged etks way in 2012, while mr kulibayev was nevertheless in the other government post as adviser to their father-in-law.
Etk and mr karmanov did not respond to demands for opinion.
Separately, e-mails from another cache, leaked on the web in 2014, suggest any particular one of mr kulibayevs exclusive organizations might have gained right from the pipeline task. an organization he owned called petroleum llp won a contract to transport 300,000 tonnes of metal for use in making the pipelines, according to a 2011 email from the companys boss. petroleum llp was appreciated at about $220m immediately afterward, another e-mail shows.
Mr kulibayevs lawyers taken care of immediately questions on petroleum llp by saying that the business never ever obtained earnings, directly or ultimately, from any company linked to the asia gas pipeline.
Additional reporting by max seddon in moscow