The government of Kazakhstan and representatives of Anatol and Gabriel Stati, moguls from Moldova, have agreed to leave behind all legal disputes in international courts over oil and gas assets in Kazakhstan, which had lasted for years. The two sides have signed an agreement, the conditions of which are confidential.
A 14-year legal dispute over oil and gas assets in Kazakhstan was resolved with the support and consent of leading creditors of Tristan Oil Limited, an offshore company run by Stati. The government of Kazakhstan, the National Bank of Kazakhstan and the Stati representatives have reached a peaceful and mutually acceptable settlement for their 14-year dispute over oil and gas assets in Kazakhstan.
According to the Ministry of Justice of Kazakhstan, both sides are «happy to reach a mutually acceptable agreement that would stop all legal proceedings and lawsuits in all jurisdictions.» The specific conditions of the agreement are confidential, the agency noted.
«We support the framework agreement and welcome President Kassym-Jomart Tokayev’s decision to build a Fair Kazakhstan as part of his respectable reforms. The settlement of this dispute demonstrates Kazakhstan’s compliance with international treaty obligations, which opens the door to increased investment and increases its potential for economic growth. We welcome a new era for Kazakhstan,» said Daniel Chapman, CEO of Argentem Creek Partners, a creditor of Tristan Oil Limited.
In turn, Justice Minister of Kazakhstan Azamat Yeskarayev expressed hope that the agreement would have a positive impact on the investment climate of Kazakhstan.
«The agreement was reached with all respect to public interests and does not imply any public spending. We believe that the move would have a positive impact on attracting new investments into our country and promoting its economic growth,» he said.
The context: Moldovan businessmen Anatol (father) and Gabriel (son) have been suing Kazakhstan in international courts for 14 years.
In 1999, Tristan Oil Ltd, an offshore company controlled by Anatol Stati, acquired stakes in two Kazakhstani oil companies: Tolkynneftegaz and Kazpolmunay. With the help of these assets, Stati started developing the Borankol and Tolkyn oil fields in the Mangystau region.
In 2008, Stati was accused of breaching Kazakhstan’s tax legislation as Kazakhstani fiscal authorities claimed that the pipelines he owned were actually fields, not main pipelines, which violated his licenses. The authorities accused the company of earning more than $295.4 million illegally. In 2010, both Tolkynneftegaz and Kazpolmunay were transferred to the trust management of KazMunayTengiz (a subsidiary of KazMunayGas).
After losing control over these companies, Stati initiated a series of lawsuits in various jurisdictions demanding Kazakhstan to return all his investments (about $500 million). All documents related to the case are available on a special website launched by the Ministry of Justice of Kazakhstan.
