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Shukhrat Ibragimov and the controversial oligarch Kenes Rakishev have acquired a major Kazakh coal mine.
A filing on the Kazakhstan Stock Exchange (KASE) revealed that Shukhrat Ibragimov and Rakishev became joint owners of Shubarkol Premium coal mine on September 13, 2024, following the sale of fellow oligarch Timur Kulibayev's 67% stake in the business.
The other shareholders – FCI Management LLP, which held 16.5% and Trans Coal Investment Group LLP, also holding 16.5% - have also given up their respective stakes.
Ibragimov is the son of Eurasian Resources Group (ERG) founder Alijan Ibragimov, who died in 2001. Shukhrat took over his father’s position on the mining company’s Board and recently became the chairman.
His elevation to ERG chairman was reportedly helped by Rakishev, whose father-in-law Imangali Tasmagambetov is a powerful figure in Kazakh politics.
Rakishev is known for his questionable associations, including with Ramzan Kadyrov, the authoritarian Kremlin-backed leader of Chechnya, whose militia participated in Putin’s invasion of Ukraine. Rakishev has also struck up a close friendship with US President Joe Biden’s convicted son Hunter, who he described as ‘my brother from another mother!’. Rakishev has frequently been mentioned in investigations into alleged influence peddling by Hunter Bid.
Shubarkol Premium, located in Karaganda, was established in 2017 and specialises in extracting long-flame coal ("grade D") for both domestic and international markets. The company has significantly increased its production, reaching over 3 million tons in 2022, compared to 801,000 tons in 2016.
However, Shubarkol Premium has faced criticism in recent years amid allegations that it prioritises international buyers, particularly from China, over domestic consumers. Reports suggest that local residents in Karaganda have been charged exorbitant prices for coal, comparable to gold prices.
The business venture marks Ibragimov and Rakishev’s second business partnership. In 2023, Monaco-resident Ibragimov invested $23 million in Rakishev-owned Borealis Foosd Inc., a Canadian ramen and noodle business whose backers include celebrity chef Gordon Ramsay.
However, the investment, made via Ibragimov’s BVI-incorporated company Belphar Ltd, has failed to help the struggling business. In May 2024, the company reported earnings per share of -49 cents and has adjusted its expansion plans to ease the company’s financial pressures. Borealis has also embarked on a stock buyback programme.
The acquisition of Shubarkol is the latest in a flurry of new ventures for the businessman. The Financial Times reported earlier this year that in February 2023 Ibragimov became the owner of Forte Village, a luxury resort on the island of Sardinia, after the previous owner, Russian businessman Musa Bazhaev, was sanctioned by the European Union.
Kazakh businessman Rakishev operates in a number industries via his holding group Fincraft Group LLP, through which he controls 78.85% of Fincraft Resources JSC and BTA Bank. In addition to Kazakhstan, the group operates in the United States, Ukraine, the UK, Russia, Cyprus and the Seychelles.
