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IPFS News Link • Economy - International

"It's Unprecedented": Bank Of New York Freezes $23 Billion In Kazakh Assets

• http://www.zerohedge.com, by Tyler Durden

"And now we wait for the next multi-billion asset freeze from some sovereign which not many will shed tears for... until one day, as the saying goes, they come to freeze your assets."

Overnight, Bank of New York Mellon said it had frozen $22.6 billion in assets held by Kazakhstan's National Oil Fund in a rare move that escalates a legal battle between the government and a Moldovan investor. According to Reuters, Moldova's Anatolie Stati and his companies had earlier won damages against the Kazakh government, and his pursuit of payment has resulted in some 40% of the oil revenue-supported fund being frozen. Putting the freeze in context, it is roughly equivalent to 17% of Kazakh GDP.

Details of the asset freeze, which took place in October, were reported by Reuters on Thursday and were subsequently disclosed at a court hearing in Britain. At the heart of the case is a years-long legal row between businessman Stati, his son Gabriel, two family-controlled companies and the Kazakh government of President Nursultan Nazarbayev. The Moldovans invested in Kazakhstan's oil and gas industry and have charged that they were subjected to significant harassment from the state aimed at forcing them to sell their investments cheaply, according to Reuters.

While Kazakhstan had denies the allegations, Anatolie and Gabriel Stati and two of their companies – Ascom Group S.A. and Terra Raf Trans Traiding Ltd., won an international arbitration award of around $500 million against the government.


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