Azamat Kapenov seeks $500 million from Kazakhstan in investment arbitration

September 30, 2026 at 03:07 PM2 min

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Former Kazakh businessman Azamat Kapenov is seeking about $500 million from Kazakhstan through international investment arbitration. His lawyer Zhanna Alexandrova said the government has received formal notice of the dispute over confiscated rail terminals at Dostyk and Altynkol and a freight wagon fleet. The claim comes as prosecutors allege Kapenov abused his position at Kaztemirtrans in 2013-2014.

Key Facts

Kapenov invested about $54 million from 2017 to 2025 through Eurotrans Grupp and Iron Box.
In April 2026, an Astana court transferred the Dostyk terminal, valued at 22 billion tenge, to the state at the request of the Main Transport Prosecutor's Office.
Prosecutors allege Kapenov granted illegal preferences to affiliated companies while vice president of Kaztemirtrans in 2013-2014.
The defense says the case involves only 660 million tenge in lost profits, not embezzlement, and that the Anti-Corruption Service closed the case in 2016 for lack of damage.
Kapenov denies being on an international wanted list and says his whereabouts are known to authorities.

The Arbitration Claim

Kapenov's lawyer Zhanna Alexandrova said the government of Kazakhstan has received formal notice of the dispute. The claim concerns confiscated railway terminals at Dostyk and Altynkol stations on the border with China, as well as a fleet of freight wagons. Kapenov invested about $54 million from 2017 to 2025 through Eurotrans Grupp and Iron Box. In April 2026, an Astana court transferred the Dostyk terminal, valued at 22 billion tenge, to the state at the request of the Main Transport Prosecutor's Office.

Prosecution and Defense

Prosecutors suspect Kapenov, former son-in-law of Karim Masimov, of abuse of authority while vice president of Kaztemirtrans in 2013-2014. They allege he provided illegal preferences to affiliated companies. The defense says the case involves only 660 million tenge in lost profits, not embezzlement. The Anti-Corruption Service closed the case in 2016 for lack of damage. Kapenov denies being on an international wanted list and says his whereabouts are known to authorities.