Kazakh President Tokayev Says Anti-Corruption Efforts Boost Investor Confidence

Kazakh President Kassym-Jomart Tokayev stated on Friday that the arrest of Nurlan Zhakupov, head of the country's sovereign wealth fund Samruk-Kazyna, on suspicion of corruption would not disrupt the fund's operations. Tokayev emphasized that anti-corruption efforts should boost investor confidence in the institution. The arrest was made by Kazakhstan's domestic security service on Thursday, along with Yelzhas Otynshiyev, head of the state railway company Kazakhstan Temir Zholy.

Samruk-Kazyna, wholly owned by the Kazakh government, manages assets accounting for almost 40% of Kazakhstan's GDP, including the national carrier Air Astana and state oil and gas company KazMunayGaz. The fund is cooperating with the investigation, according to a statement released on Thursday. Tokayev made these comments at a session of the country's security council, where he reassured stakeholders that the fund's operations would continue uninterrupted.

Tokayev also mentioned that Kazakhstan had reviewed some contracts, which he believed were signed in error, though he did not specify the industries or parties involved. This review may be related to the energy sector, where Kazakhstan has disputed several major foreign-led projects. The country has accused oil companies that entered in the 1990s of corruption and environmental violations, and is pursuing arbitration against them.

Kazakhstan accounts for about 2% of global oil supply and has recently won an arbitration case against a consortium of oil majors operating the Karachaganak field. The country is also in arbitration proceedings over alleged environmental violations at the offshore Kashagan field. These disputes highlight the complexities of Kazakhstan's energy sector and its efforts to review and renegotiate contracts.

The arrest of Samruk-Kazyna's CEO and KTZ's head on corruption suspicion demonstrates Kazakhstan's efforts to combat corruption and promote transparency. Tokayev's comments suggest that these efforts aim to increase investor confidence in the country's institutions and state-owned enterprises. The listing hearing cleared by KTZ at the Hong Kong Stock Exchange is a key step toward a planned initial public offering.

The planned initial public offering by KTZ, with listings in Astana, Hong Kong, and London, may be influenced by Tokayev's anti-corruption efforts and commitment to transparency. A successful listing could attract investors and demonstrate the country's progress in promoting good governance. Samruk-Kazyna's assets, including Air Astana and KazMunayGaz, are significant components of Kazakhstan's economy.

Tokayev's emphasis on anti-corruption efforts and transparency reflects the country's aim to improve its business environment and attract investment. The review of contracts and arbitration cases against oil companies also indicate Kazakhstan's efforts to renegotiate its energy sector agreements and promote fair business practices.

Key points

• Kazakh President Kassym-Jomart Tokayev says anti-corruption efforts will boost investor confidence in the country's institutions and state-owned enterprises.