Kazakhstan's ERG shows mining elite now tethered to Tokayev state capitalism
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Kazakhstan's business elite is being recast in President Kassym-Jomart Tokayev's image ahead of the August 23 Kurultai election, with critical minerals miner Eurasian Resources Group the clearest example. The Constitutional Court determined last month that Tokayev can legally stand for the presidency again under the new basic law that entered force July 1. The development leaves his earlier pledge not to seek another term, with his current term ending in 2029, firmly in the balance.
Key Facts
- Kazakhstan will hold elections to its newly established unicameral parliament, the Kurultai, on August 23.
- The Constitutional Court determined that Tokayev can legally stand for the presidency again under the new basic law that entered force on July 1, leaving his earlier pledge not to seek another term in doubt.
- Eurasian Resources Group, a Luxembourg-domiciled mining group, contributes between 2 and 4 percent of Kazakhstan's GDP.
- In June, Kudrat Shamiyev, chairman of Integra Construction KZ, added the title CEO of Eurasian Group LLP, the Kazakh division of ERG.
- Shamiyev, who is 36 and heads Kazakhstan's Taekwondo federation, discussed a 'China-style' resource-for-infrastructure exchange in Instagram clips.
Kurultai Election and Tokayev's Term
Kazakhstan will hold elections to its new unicameral parliament, the Kurultai, on August 23. Last month, the Constitutional Court determined that Tokayev can legally stand for the presidency again under the new basic law that entered force on July 1. His earlier pledge not to seek office again, with his current term ending in 2029, is now firmly in the balance. The election marks the latest phase of the political elite's consolidation under President Kassym-Jomart Tokayev.
ERG and State Capitalism
Eurasian Resources Group is a Luxembourg-domiciled mining group whose critical minerals output is globally significant and whose contribution to the Kazakh economy is estimated between 2 and 4 percent of GDP. Despite Tokayev's criticisms of the oligopolies formed under Nursultan Nazarbayev, some of Kazakhstan's most powerful non-oil companies are now concentrated in even fewer hands after megadeals first reported in the second half of last year. The new captains of industry are visibly more tethered to officialdom than the Nazarbayev-loyal oligarchs who preceded them. Astana is embracing the state capitalism model wholeheartedly, especially in the mining sector.
Shamiyev's China-style Exchange
In a series of video clips posted to his official Instagram, Kudrat Shamiyev discusses Integra Construction KZ, described as the biggest construction company in Kazakhstan, with another delegate at an international Taekwondo event. Shamiyev, 36, is Integra's chairman and Kazakhstan's Taekwondo federation chief. In the clips, Shamiyev says he owns a mining company and takes resources while giving enough, and agrees when the delegate asks whether the arrangement is similar to China-style. The delegate offers to introduce Shamiyev to his government to discuss building a railway, Integra's stock and trade. By the time the third clip was posted in June, Shamiyev had added the role of CEO of Eurasian Group LLP, the Kazakh division of ERG.
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Kazakhstan's ERG shows mining elite now tethered to Tokayev state capitalism
