The Week in Kazakhstan: Nothing for Money

Former army commander Aidos Myrzakhmetov was appointed minister of defense on September 27.He replaced Dauren Kosanov, who was fired in the aftermath of the incident that led to the death of 14 servicemen during an exercise in the Caspian Sea last week.On the same day, President Kassym-Jomart Tokayev met with officials of the ministry of defense and ordered a plan to reform the military and defense institutions within 10 days. “This tragic incident has clearly exposed numerous shortcomings and a lack of professionalism in the military,” Tokayev said. A court in Atyrau rejected an earlier decision that ruled “illegal” the collection of an environmental fine slapped on one of Kazakhstan’s largest oil producers.On September 23, the court denied the claims of NCOC, the consortium that operates the Kashagan offshore field.The legal dispute concerns a 2.3 trillion tenge ($5.2 billion) fine.On September 30, state-owned Kazmunaigas announced its intention to take back direct control of KMG Kashagan BV, an Amsterdam-based subsidiary that owns a 16.88% in NCOC.KMG Kashagan was previously owned by Cooperative KazMunaiGaz UA, another subsidiary of the national company.The consortium is embroiled in a number of legal disputes with the government.Shareholders of Kazakhstan-based gold miner Solidcore Resources (formerly Polymetal International) approved on September 30 a share buyback program of up to $1.2 billion.The buyback concerns 23.2% of the company’s shares.The company’s largest shareholder Maaden International Investment (31.7%), owned by a consortium of Omani investors, could increase its stake up to 41.3%.