Political persecution in response to human rights work and eco-activism. The role of Chevron Corporation in corporate raiding in Kazakhstan.
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Introduction
The Kazakhstani authorities are trying to convince the international community that President Tokayev is carrying out democratic reforms in the country. However, the facts are to the contrary — large-scale political repression against critics of the regime continues in Kazakhstan. Moreover, Kazakhstan is resorting to international instruments and political pressure to achieve its goals. Chevron Corporation, one of the largest energy companies in the world, based in the United States, was used for reprisals against human rights activist and eco-activist Barlyk Mendygaziyev.
The Open Dialogue Foundation, together with human rights experts from the #ActivistsNoExtremists coalition, has drafted a report on the politically motivated transnational persecution of human rights defender and philanthropist Barlyk Mendygaziyev. Mendygaziyev was prosecuted for his activities in defence of human rights and the environment, as well as for providing material and financial assistance to victims of political repression in Kazakhstan. The Mendygaziyev case shows that any business in Kazakhstan can be destroyed if its founder falls out of favour with the authorities or with oligarchs close to the authorities.
The persecution of Barlyk Mendygaziyev, his relatives and colleagues has received wide international publicity as one of the examples of transnational repression committed by the Kazakhstani regime. In particular, Mendygaziyev’s case is mentioned in the resolutions of the European Parliament dated 11 February 2021 and 20 January 2022 on the human rights situation in Kazakhstan and in the written declarations of the PACE deputies dated 27 June 2022 and 17 October 2023. The Mendygaziyev case is also mentioned in the US State Department’s annual country reports on the human rights practices in Kazakhstan for 2021, 2022 and 2023 as an example of selective justice and transnational repression committed by the Kazakhstani authorities.
Corruption and large-scale human rights violations in Kazakhstan, including transnational repression, are detrimental not only to Kazakhstan, but also to the strategic interests of Western countries in the region. As Congressman Bennie G. Thompson rightly pointed out, corruption and kleptocracy in the implementation of large-scale infrastructure projects in Central Asia prevent Western companies from competing fairly with Chinese companies, which harms US strategic interests in the region.
1. Barlyk Mendygaziyev: philanthropist, human rights defender and eco-activist
Barlyk Mendygaziyev is known in Kazakhstan as the founder of KSS (Karachaganak Support Service), which for over 25 years has been engaged in the processing of oil sludge and oily water, cleaning of oil reservoirs, and other activities in the field of oil pollution elimination. Mendygaziyev has repeatedly stated that KSS was the only company in Kazakhstan that used the most advanced technologies to process oil waste without harming the environment. KSS worked in the Tengiz oil and gas field and was one of the contractors of Tengizchevroil LLP. The largest shareholder of Tengizchevroil LLP is the US company Chevron Corporation, which holds a 50% stake.
In 2012, Barlyk Mendygaziyev’s public activities in the field of environmental protection sparked resistance from the leadership of West Kazakhstan region and powerful oligarch Timur Kulibayev, son-in-law of dictator Nursultan Nazarbayev. Mendygaziyev was subjected to politically motivated persecution, and KSS and its subsidiaries came under pressure aimed at the taking over of Mendygaziyev’s business.
In 2016, the company held an IPO, which resulted in 100 per cent of the company’s shares being distributed among its 120 employees [The market value was about USD 40 million]. Mendygaziyev was forced to resort to such a move to prevent attempts by oligarchs close to Kazakhstan’s top leadership to take over his business. Since then, Mendygaziyev has been an investor in KSS and a consultant to the company. Mendygaziyev was forced to leave Kazakhstan. He currently resides in the United States, where he and his wife, a US citizen, run a business. He also founded a human rights foundation, the Freedom Kazakhstan Foundation, in the United States in 2020.
Barlyk Mendygaziyev’s human rights activities have provoked another criminal prosecution of Mendygaziyev in Kazakhstan, as well as new takeover attacks on KSS. Since Barlyk Mendygaziyev does not reside in Kazakhstan, the authorities fabricated criminal cases against his relatives and business colleagues. At the moment, his brother Bekizhan Mendygaziyev, as well as colleagues Natalia Dauletiarova, Baurzhan Jusupov and Rinat Batkayev, are in detention and are in fact hostages of the Kazakhstani regime, which is attempting, by these means, to influence Barlyk Mendygaziyev.
According to KSS, in early 2023, with the participation of the global energy corporation Chevron Corporation, which owns 50 per cent of the shares of Tengizchevroil, the largest oil producing company in Kazakhstan, the property and equipment of KSS was taken over. The takeover was carried out in the interests of West Dala company, which is owned by Tolegen Balgimbayev, the son of former Prime Minister of Kazakhstan Nurlan Balgimbayev.
KSS was a contractor of Tengizchevroil for several years, receiving positive feedback on co-operation from the latter. However, after Barlyk Mendygaziyev fell out of favour with the Kazakhstani authorities, the contract was terminated prematurely upon the initiative of Tengizchevroil.
By participating in the illegal takeover of KSS property, Tengizchevroil and its foreign shareholders acted in cahoots with the Kazakhstani authorities, who initiated a politically motivated reprisal against Barlyk Mendygaziyev, his family, his close associates and his business.
2. Eco-activism and conflict with oligarch Kulibayev: the first takeover attack in 2013
In July 2012, Barlyk Mendygaziyev publicly opposed the construction of an oil waste yard in a specially protected natural area of West Kazakhstan region. At the public hearings, he stated that the construction was illegal and was being carried out under the patronage of the Akim (mayor) of the region, Nurlan Nogayev. Mendygaziyev also mentioned corruption during the implementation of the project. Philanthropist and eco-activist Mendygaziyev believes that, by doing so, he put himself on the wrong side of companies under the control of powerful Kazakhstani oligarch Timur Kulibayev, namely ZhaikMunai and OralOilGas. Until December 2023, Kulibayev was Chairman of Kazenergy, an association of oil, gas and energy organisations. In 2011, he headed the state fund Samruk-Kazyna, which includes national companies with a total budget of about USD 80b.
Oligarch Kulibayev is one of the most influential figures in Kazakhstan’s oil and gas industry — a key industry to the country’s economy. A Financial Times investigation published in December 2020 revealed that Kulibayev used his influence to make super-profits in the construction of a gas pipeline from Central Asia to China. Kulibayev acted as a supervisor for a number of state-owned companies that were involved in the construction of the pipeline.
The results of the FT investigation were noted by the US Congress. On 7 May 2021 Congressman Bennie G Thompson cited the Kulibayev case as an example of corruption and kleptocracy in the implementation of large-scale infrastructure projects in Central Asia. According to the congressman, due to corruption in Kazakhstan, Western companies cannot compete fairly with Chinese companies, which harms US strategic interests in the region. Bennie G Thompson called for adoption of the Countering Russian and Other Overseas Kleptocracy (CROOK) Act, which aims to help civil society activists in authoritarian states.
According to Mendygaziyev, in 2012–13 Akim Nurlan Nogayev helped implement the interests of oligarch Kulibayev in the oil and gas sector of the West Kazakhstan region. Mendygaziyev prevented Akim Nurlan Nogayev, acting in the interests of oligarch Kulibayev, from executing his criminal plans by raising the issue of large-scale environmental pollution and corruption in the regional authorities. Mendygaziyev was then subjected to prosecution, which he points out was backed by Kulibayev and Nogayev.
The Kazakhstani law enforcement agencies fabricated charges against Mendygaziyev for alleged “non-payment of taxes”. The anti-corruption agency, tax inspection, prosecutor’s office, department of sanitation, and fire department came to KSS with inspections. As a result of political persecution, Mendygaziyev was arbitrarily arrested and kept in detention from 22 July 2013 to 17 September 2013. The case received publicity, which caused Mendygaziyev’s release from custody, but a Kazakhstani court imposed a fine and a one-year ban on entrepreneurial activity.
In 2014, there was another episode of pressure on Barlyk Mendygaziyev’s business. According to Mendygaziyev, the head of the board of the National Chamber of Entrepreneurs of Kazakhstan “Atameken” Ablay Myrzakhmetov demanded that Barlyk stop engaging in eco-activism, sell all his business to him and leave Kazakhstan. Mendygaziyev refused. After that, KSS building LLP, a company belonging to the KSS group, came under attack. In 2015, KSS building LLP’s main client came under pressure from the government of Kazakhstan to cease its co-operation with KSS building LLP. As a result, KSS building LLP was forced into bankruptcy. At the time, the Chairman of the Atameken was Timur Kulibayev. Thus, Mendygaziyev emphasises, oligarch Kulibayev destroyed part of his business.
3. Mendygaziyev’s human rights and opposition activities
In March 2020, Barlyk Mendygaziyev founded Freedom Kazakhstan Foundation, which was officially registered in the USA on 1 September 2020. The purpose of the organisation is to provide financial and legal assistance to victims of political repression in Kazakhstan and to promote the inclusion of high-level Kazakhstani officials and members of Nursultan Nazarbayev’s family on the list of sanctions under the Magnitsky Act. Freedom Kazakhstan Foundation, with funds donated by Mendygaziyev, provided financial assistance to help pay attorneys’ fees for politically persecuted individuals. It has also paid fines imposed on participants of peaceful assemblies and provided financial support to the families of political prisoners.
In addition, Barlyk Mendygaziyev has been involved in raising awareness about human rights violations, large-scale corruption schemes and corporate raids in Kazakhstan during meetings and events with members of the EU states, members of the European Parliament, US congressmen and senators, and representatives of international human rights organisations.1,2,3,4.
Mendygaziyev has publicly expressed his support for the peaceful opposition movements Democratic Choice of Kazakhstan (DCK) and Koshe Partiyasy (“Street Party”). The Kazakhstani authorities labelled these movements “extremist”, accusing them of “inciting social discord”, “forming a negative image of the authorities” and “provoking protest sentiments”. The Kazakhstani court passed the verdicts secretly, without the right of defence or appeal. Over 10,000 supporters of DCK and Koshe Partiyasy across Kazakhstan have been persecuted since 2017. In its resolutions 1,2,3, the European Parliament has repeatedly recognised the peaceful nature of the activities of DCK and Koshe Partiyasy and condemned the political persecution of activists of these movements. The US State Department’s 2023 country reports on the human rights practices in Kazakhstan notes that among the political prisoners in Kazakhstan there are members of the DCK and Koshe Partiyasy. The same report indicates that Kazakhstan has resorted to selective justice against Bekizhan Mendygaziyev and other relatives and colleagues of Barlyk Mendygaziyev in order to pressure him in this way.
4. Criminal case against Barlyk Mendygaziyev and KSS employees
Barlyk Mendygaziyev’s human rights, charity and opposition activities caused another politically motivated persecution, as well as a corporate raid on KSS.
On 6 November 2020, armed persons in masks and not displaying signs of identification broke into the territory of KSS in Aksay. They are presumed to have been officers of the Ministry of Internal Affairs and National Security Committee (KNB). In the absence of attorneys, searches were conducted and computers, company seals, documentation, as well as money of KSS and its employees, were seized.
After that, it became known that the Economical Investigate Department (DER) of the Financial Monitoring Agency of the Republic of Kazakhstan started an investigation on suspicion of “tax evasion” (Article 245 Part 3 of the Criminal Code) and “management of an organised criminal group” (Article 262 Part 1 of the Criminal Code). According to the KNB and DER, Barlyk Mendygaziyev “organised a criminal group”, “which included” his relatives and employees of KSS.
The persecution was initiated by the head of Kazakhstan’s National Security Committee (KNB), Karim Massimov, who threatened Mendygaziyev. Through an intermediary — businessman Bergey Ryskaliyev — Massimov demanded that Mendygaziyev renounce his public and charity activities and publicly “repent”. Otherwise, as Ryskaliyev reported, KSS would be destroyed, the company’s employees and Barlyk’s relatives would be imprisoned, and he would be extradited from the United States. Mendygaziyev firmly refused to comply with Massimov’s conditions.
On 26 October 2020, a Kazakhstani court arrested Barlyk Mendygaziyev in absentia, and on 7 November 2020, the Kazakhstani authorities put him on an international wanted list. In December 2020, Interpol removed the Red Notice against Barlyk Mendygaziyev and removed him from the wanted list. This was followed by a court decision in absentia in Kazakhstan to revoke Mendygaziyev’s Kazakh citizenship. According to Mendygaziyev, based on this decision, a takeover of the agricultural lands of KSS Farming was conducted in favour of Timur Kulibayev’s companies ZhaikMunai and OralOilGas.
Notably, the KNB and DER linked the current case against Barlyk Mendygaziyev to a previous prosecution he faced back in 2013. The indictments noted that after his conviction in 2013, Barlyk Mendygaziyev “did not draw the proper conclusions for himself” and “consciously decided to continue engaging in criminal activity”. It should be noted that the sentence received by Barlyk Mendygaziyev in 2013 was cancelled three years later. However, eight years later, the Kazakhstani authorities decided to use this conviction as an aggravating circumstance in a new political prosecution.
From November 2020 to May 2021, investigators and KNB representatives, without identifying themselves, interrogated KSS employees without the presence of defence attorneys and referred to them as “members of a criminal group”. The interrogations were conducted even at night. KSS employees were forced to give false testimony against themselves and Barlyk Mendygaziyev, and were intimidated that their families would face criminal prosecution or physical danger if they refused. Criminal cases were initiated against Barlyk Mendygaziyev’s colleagues — Natalia Dauletiarova, Baurzhan Jusupov and Rinat Batkayev.
The authorities completely paralysed the activities of KSS. KSS bank accounts were frozen: the company could not pay contractors, remit taxes or pay salaries.
On 17 May 2021, Atyrau City Court No. 2 sentenced Natalia Dauletiarova and Baurzhan Jusupov to five years of restriction of liberty, and Rinat Batkayev, Dauletiarova’s assistant, to three and a half years of restriction of liberty. They were found guilty of “tax evasion” (Article 245 of the Criminal Code) and/or “issuing false invoices” (Article 216 of the Criminal Code). They were also charged with “organisation and participation in an organised criminal group” (Article 262 of the Criminal Code), but the court acquitted them of these charges. However, on 26 July 2021, the Atyrau Court of Appeal overturned the decision of the court of first instance and found Dauletiarova, Jusupov and Batkayev guilty also of “organisation and participation in an organised criminal group” and replaced the restriction of liberty with real prison sentences. Jusupov was sentenced to five and a half years’ imprisonment, Dauletiarova to seven years’ imprisonment and Batkayev to five years’ imprisonment.
A politically motivated criminal case was also fabricated against Barlyk Mendygaziyev’s older brother, Bekizhan Mendygaziyev. Bekizhan provided supply services for KSS, including food deliveries. He also made money transfers at Barlyk’s request to pay politically motivated fines issued for participation in peaceful assemblies and to support the families of political prisoners. During Bekizhan’s interrogations, secret services, police and prosecutors asked about these money transfers.
In November 2020, during a search in the temporary accommodation room at KSS, police allegedly “found” a bag of marijuana in one of the work jackets. Investigators stated that this jacket “belonged to Bekizhan Mendygaziyev“. During the search, no one was present in the room except police and KNB officers. A team of six investigators from Atyrau, Uralsk and Nur-Sultan was set up to prosecute Bekizhan Mendygaziyev in the case of the allegedly found bag of marijuana. The number of investigators involved was grossly disproportionate for this type of case and confirms the political motivation of the prosecution.
In June 2021, Bekizhan Mendygaziyev faced new political charges of “participation in an organised criminal group” (Article 262 Part 2 of the Criminal Code), “tax evasion” (Article 245 Part 3 of the Criminal Code), “money laundering” (Article 218 Part 3 of the Criminal Code) and ” invoicing without actually performing work” (Article 216 of the Criminal Code). It is noteworthy that Bekizhan Mendygaziyev did not have any labour relations with KSS, nor did he have any tax reporting authority.
On 3 June 2021, Bekizhan Mendygaziyev was arbitrarily detained. On 5 June 2021, he was placed by a court ruling in the pre-trial detention facility, where he was kept under arrest for more than one and a half years. The court ignored the fact that Bekizhan has chronic hepatitis C, kidney failure, chronic colitis and an intervertebral hernia. Since November 2020, Bekizhan has been hospitalised twice as his health deteriorated due to numerous interrogations and pressure from the KNB and the DER.
The trial of Bekizhan Mendygaziyev was conducted with an accusatory bias, without ensuring the right to a fair and independent trial. As a result, Bekizhan Mendygaziyev was found guilty of all politically motivated charges. The case with a bag of marijuana planted by police officers was dropped. On 19 December 2022, Bekizhan Mendygaziyev was sentenced to five years and one month in prison.
On 7 February 2023, the appellate court of the Atyrau Regional Court, in violation of the right to a fair and independent trial, upheld the sentences of Bekizhan Mendygaziyev and Baurzhan Jusupov. The case of Bekizhan Mendygaziyev is highlighted in the US State Department’s 2023 country reports on the human rights practices in Kazakhstan as an example of transnational repression by the Kazakhstani authorities. The report indicates that Kazakhstan has resorted to selective justice against Bekizhan Mendygaziyev and other relatives and colleagues of Barlyk Mendygaziyev in order to influence the latter in this way.
According to Kazakhstani law, the convicts were eligible for parole from 2023, but their applications were rejected. This was another confirmation that the Kazakhstani regime is in fact using them as hostages to have leverage over Barlyk Mendygaziyev. In June 2024, Salavat Tashtemirov, a director and one of the owners of KSS, reported that the company’s employees were again being interrogated by the KNB and DER in order to exert pressure and obtain false testimony against Bekizhan Mendygaziyev and Baurzhan Jusupov. The authorities probably intend to press new criminal charges against them. According to Tashtemirov, police officers threatened to deprive him of parental rights to his four adopted children if he did not co-operate with the KNB. Other KSS employees were also pressured.
The European Parliament, in its resolution dated 20 January 2022 on the situation in Kazakhstan, recognised Bekizhan Mendygaziyev, Natalia Dauletiarova, Baurzhan Jusupov and Rinat Batkayev as political prisoners and called for their immediate release. Additionally, the case of Bekizhan Mendygaziyev is mentioned in the written declarations of the PACE deputies dated 27 June 2022 (that calls for all political prisoners of Kazakhstan to be released) and 17 October 2023 (that calls on the Parliamentary Assembly to pay attention to the cases of political repression in Kazakhstan).
Political persecution of other relatives of Barlyk Mendygaziyev
Apart from Bekizhan Mendygaziyev, other relatives of Barlyk Mendygaziyev have faced political persecution and pressure.
- On 21 December 2020, police officers and armed officers of special police units searched the houses and flats of Barlyk Mendygaziyev’s brothers Kalyk and Erik Mendygaziyev. The formal basis for the searches was a fabricated criminal case of alleged “theft of ten horses”. At the same time, the police refused to inspect the premises where horses could be kept, but did search the rooms in the house, including wardrobes and under beds. Kalyk was additionally accused of “stealing 300 metres of electric cable“. Both fabricated cases were incredibly absurd: Kalyk Mendygaziyev’s property was searched while he was in hospital. Kalyk Mendygaziyev’s wife, children and grandchildren were pressured. Due to a serious illness, Kalyk was practically blind at the time, both of his legs were amputated, and he was wheelchair-bound. The police interrogated Kalyk directly in the hospital, which can be regarded as ill-treatment and torture. Political persecution, pressure by the secret services, and endless interrogations in the hospital became decisive factors in the significant deterioration of Kalyk Mendygaziyev’s health and, in March 2023, led to his death.
- Arman Mendygaziyev is the nephew of Barlyk Mendygaziyev, who was in charge of material supply coordination for KSS shift workers. The DER stated that he was “involved in criminal acts” that had been “committed by Barlyk Mendygaziyev and Bekizhan Mendygaziyev”. On 3 June 2021, Arman’s house and car were searched without court authorisation, and his phone was seized. A politically motivated investigation was launched against Arman on charges of “participation in an organised criminal group” (Article 262 of the Criminal Code), “tax evasion” (Article 245 of the Criminal Code) and “money laundering” (Part 3, Article 218 of the Criminal Code). However, the case was later closed.
- Bulat Dushanov is the nephew of Barlyk Mendygaziyev’s wife, who was in charge of logistics at KSS. On 24 June 2021, DER officers subjected Bulat Dushanov to interrogation, demanding he testify against Bekizhan Mendygaziyev, saying that in 2019 Bulat allegedly transported illegal cash for Bekizhan.
5. Illegal takeover of KSS property with the participation of Chevron Corporation oil company
Since January 2017, KSS has been a contractor of Tengizchevroil LLP (“Tengizchevroil”), handling automated cleaning of oil reservoirs and processing of oil sludge and oily water at the Tengiz field [The Tengiz field has been developed since 1993 by the joint venture Tengizchevroil, whose shareholders are Chevron (50% of shares), ExxonMobil Kazakhstan Ventures Inc (25%), KazMunayGas (20%) and LUKArco (5%)]. KSS invested financial and material resources in the construction of an industrial depot on the territory of the Tengiz field.
As stated by KSS [Attachment 1], in early April 2023, with the participation of the global energy corporation Chevron Corporation, which owns 50% of the shares of Tengizchevroil, the largest oil producing company in Kazakhstan, representatives of Tengizchevroil took over the property and equipment of KSS, which was located on the territory of the industrial depot of KSS. The takeover was carried out in the interests of West Dala and Expert Diagnostics. West Dala is owned by Tolegen Balgimbayev, son of former Prime Minister of Kazakhstan Nurlan Balgimbayev. Also by means of bribing KSS engineers, the business process for automated cleaning of oil tanks and processing of oil sludge and oily water developed by KSS Company was stolen. KSS management decided to dismiss these engineers, but immediately afterwards, Salavat Tashtemirov, the director of KSS, came under pressure from the police and the authorities of the Burlin District of West Kazakhstan region. Following the theft of KSS property and process technology, its leading specialists were employed by West Dala. This happened through the mediation of Tengizchevroil.
KSS states that Tengizchevroil has not yet fulfilled its contractual obligations to KSS. In order to drive KSS into bankruptcy and not fulfil its contractual obligations Tengizchevroil filed a civil lawsuit against KSS in December 2022 in the Atyrau Regional Court. As of April 2023, when the illegal takeover of KSS’s industrial depot and property took place, the court had not yet passed a final judgement. It was not until August 2023 that a politically motivated judgement was handed down on the appropriation of KSS’s industrial capacity. KSS reportedly repeatedly warned Tengizchevroil against taking over KSS’s industrial facilities without a final court judgement. It is likely that Tengizchevroil was certain that the court decision would be favourable for them, which may indicate a criminal conspiracy with the Kazakhstani authorities. In fact, KSS was purposefully driven into bankruptcy to facilitate its illegal takeover in the interests of West Dala.
It is worth noting that before Barlyk Mendygaziyev fell out of favour with the Kazakhstani authorities and the politically motivated prosecution was initiated against him, Tengizchevroil characterised KSS as “a reliable professional contractor in the field of automated cleaning of oil reservoirs and oil sludge processing” and had no complaints about KSS’s performance [Attachments 2, 3].
After Tengizchevroil unilaterally terminated its contract with KSS, Tolegen Balgimbayev’s company West Dala was awarded the tender to process oil sludge and oily water. According to KSS, West Dala specified in its bidding documents the list of technical staff and equipment that actually belonged to KSS. Tengizchevroil ignored these facts and awarded the contract to West Dala [Attachment 1]. According to West Dala, they have been co-operating with Tengizchevroil, providing waste management services since 2012.
According to KSS, in the two and a half years after Tengizchevroil unilaterally breached the contract, West Dala did not actually process oil sludge and oily water, but simply buried these hazardous toxic oil sludges near the settlements of Kulsary and Dossor in the Atyrau region. At the same time, as KSS notes, West Dala provides processing services for oil sludge at prices inflated by at least 50 per cent compared to KSS. One example of an improper and dangerous approach to oil waste disposal was recorded in October 2023 — journalists and Kazakhstani officials recorded on video that oil waste was simply poured onto the ground near the village of Kulsary in the Atyrau region.
In the context of the severe floods that occurred in Kazakhstan in the spring of 2024, this method of disposal of oil industry waste is particularly dangerous and threatens a large-scale environmental disaster. The Mangistau region was one of the regions of Kazakhstan most affected by the 2024 floods.
The tragic incident that occurred in February 2023 at the Tengiz field is a vivid example of West Dala’s violations of safety standards for oil waste management. At that time, a tanker of one of West Dala’s vacuum truck exploded while transporting oil sludge. As a result, one worker died and another was seriously injured. West Dala confirmed that the incident occurred “at the waste management facility”.
Unfortunately, the global energy company Chevron Corporation, which owns a 50% stake in Tengizchevroil, Kazakhstan’s largest oil production company, and in fact has become involved in the transnational prosecution of Mendygaziyev and his associates, has not commented on the illegal takeover of KSS property and equipment organised by Tengizchevroil. In addition, it is not publicly known whether Chevron Corporation has conducted an independent investigation into possible environmental violations by West Dala during the processing of oil sludge and oily water and the disposal of toxic oil industry waste near the Kulsary and Dossora communities in the Atyrau region.
Environmental emergencies and violations of environmental standards by Tengizchevroil’s contractors are not uncommon in the Tengiz field, but have also gone uninvestigated:
- In 2022, 14 fatalities were reported at the Tengiz field. In 2023, at least two fatalities were reported.
- In March 2022, a fire occurred in the oil sludge processing plant of Nasar Solutions LLP, a contractor organisation of Tengizchevroil, in the Tengiz rotational village in the Atyrau region. The Department of Ecology of the Atyrau region appointed an inspection for non-compliance with the requirements of environmental legislation.
- In August 2023, Tengizchevroil was fined a total of approximately KZT 2.8b (approximately USD 6.3m) for violating environmental regulations.
It is also worth mentioning that the development of the Tengiz oil and gas field, which is Kazakhstan’s second-largest oil reserve, is linked to a major corruption scandal involving former Kazakh President Nursultan Nazarbayev and former Prime Minister Nurlan Balgimbayev. The scandal became internationally known as “Kazakhgate”. In 2003, US law enforcement agencies accused American businessman James Giffen of paying bribes to Nursultan Nazarbayev and Nurlan Balgimbayev in the early 1990s to secure oil production contracts at the Tengiz field for the benefit of Chevron Corporation. One could argue that Kazakhgate gained momentum when Nurlan Balgimbayev’s son’s company obtained contracts from Tengizchevroil under dubious circumstances.
Conclusions
The case of Barlyk Mendygaziyev and the company he founded, KSS, is a warning to international investors that Kazakhstan is not a safe country in which to conduct business. Any business can be ruined if its representative falls out of favour with the authorities or takes the path of fighting the authoritarian regime.
The Kazakhstani regime is trying to block Barlyk Mendygaziyev’s human rights and opposition activities, to force him to stop supporting Kazakhstan’s civil society and to engage internationally in the defence of human rights in Kazakhstan.
The authoritarian Tokayev-Nazarbayev regime is persecuting Mendygaziyev and destroying his business, involving the global energy company Chevron Corporation. In doing so, the regime is sending a warning to other entrepreneurs who dare to support civil society in Kazakhstan that it has sufficient tools to carry out repression on a transnational level.
The US Department of State’s 2023 report on the investment climate in Kazakhstan notes that, despite institutional and legal reforms, corruption, excessive bureaucracy and arbitrary law enforcement remain a significant problem in Kazakhstan. The report also notes that it is difficult for investors to defend their interests in Kazakhstan’s courts, and that there are still instances of owners of thriving and developed businesses being forced to sell their businesses to companies affiliated with high-ranking and influential individuals. There is a continuing trend for the Kazakhstani authorities to strengthen their regulatory role in relations with investors.
Kazakhstan’s oil and gas industry, which is localised mainly in the Caspian Sea region, involves multiple environmental risks and is causing significant environmental damage to the entire Caspian Sea region. To neutralise this negative impact, it is necessary to invest in high-tech companies that process oil and gas industry waste. However, the Kazakhstani authorities give profitable business to those close to the regime and push out of the market independent and technological companies that create competition for them. As a result of such actions, environmental and social problems are accumulating in the region, with tragic consequences in the future.
The transnational repression against Mendygaziyev demonstrates the extremely dangerous influence and ability of Kazakhstan’s dictatorial regime, both for the United States and Western countries in general, to engage and use global companies such as Chevron Corporation for political persecution. Thus, global corporations, in exchange for access to the development and extraction of resources in Kazakhstan, actually become hostages and accomplices to the criminal actions and corruption of the Kazakhstani regime, and also share with it the responsibility for the environmental damage and related social problems.
Attachment 2. Evaluation of KSS as a reliable and professional contractor by Tengizchevroil LLP
Attachment 3. KSS Company’s Recognition Certificate “For Improvement of KPI Metrics”
