Kazakhstan and Stati end long-running legal battle

A series of litigations between Kazakhstan and Stati spanned 14 years / Collage: Kursiv.media, photo editor: Milosh Muratovskiy

The 14-year legal dispute between Kazakhstan and Moldovan businessmen Anatolie and Gabriel Stati has officially concluded. The parties reached a confidential agreement that resolves all outstanding issues between them, ensuring they cannot be reopened, according to the country’s Ministry of Justice.

«The Government of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan, and the Stati parties, with the support and approval of leading Tristan Oil creditors, have successfully completed the process of resolving a long-running dispute over oil and gas assets in Kazakhstan,» the ministry stated in a press release.

The ministry’s statement included remarks from Daniel Chapman, CEO of Argentem Creek Partners, an investment manager for certain funds that are creditors of Tristan Oil Limited, the investment vehicle of the Stati parties.

«This settlement and the approach taken by the Republic of Kazakhstan to find a fair resolution for all parties underscores that the country is a place where investor rights are respected. We thank President Kassym-Jomart Tokayev for his leadership in transforming the way foreign investors see Kazakhstan. We look forward to working on new projects in the future,» Chapman said.

Azamat Yeskarayev, Kazakhstan’s minister of justice, highlighted that the settlement creates new opportunities for the country’s economic development, including the attraction of foreign investment. He also noted that no funds from the state budget were used in the settlement.

Background: Moldovan businessman Anatolie Stati and his son Gabriel Stati were engaged in a 14-year legal dispute with Kazakhstan in international courts.

In 1999, Tristan Oil Ltd., an offshore company owned by Anatolie Stati, acquired stakes in two Kazakh oil companies, Tolkynneftegaz and Kazpolmunay. These companies gave Stati control over the Borankol and Tolkyn oil fields located in the Mangystau region of Kazakhstan.

In 2008, Anatolie Stati was accused of violating Kazakhstan’s tax laws. The country’s financial police claimed that the pipelines he owned were incorrectly classified as field pipelines rather than trunk pipelines, which breached the terms of existing licenses. As a result of these unauthorized activities, it was alleged that company executives had illegally gained over 140 billion tenge (approximately $268 million). In 2010, Tolkynneftegaz and Kazpolmunay were placed under the trust management of KazMunayTengiz, a subsidiary of KazMunayGas.

After losing control of the companies, Stati filed a series of lawsuits across various jurisdictions, seeking the return of approximately $500 million that he claimed to have invested in Kazakhstan.

All legal records related to Stati’s litigation with Kazakhstan are available on a dedicated website launched by the Ministry of Justice.