for unequivocal loyalty to the regime and assurance that they will not support or
partake in any political activity that can be seen as inimical to the authority of
Nazarbaev personally and the interests of his ‘inner circle’ of family, friends
and followers. Authorization to engage in politics involves a series of informal and
personal pacts between ‘the Family’ (sem’ia), or the inner circle of the regime
and the various contenders, according to which the latter are expected to abide by
the implicit but well-understood norms of business competition and political
participation. Political patronage and successful entrepreneurial activism are not
only closely entwined, but operate together in a mutually enforcing relationship.
Yermukhamet Yertysbaev, a long-term presidential spokesperson (he became the
Minister of Information and Culture in January 2006) asserted that there is no
difference between state and business: ‘[B]usiness and power constitute a single
monolith in Kazakhstan, whose unconditional leader is Nursultan Nazarbaev:
a de jure and de facto symbol and guarantor of the unity of the people and state
power, the inviolability of the Constitution, rights and freedoms of the citizens.’
29
A study by the Moscow-based Institute of Research on Contemporary Political
Issues in 1999, the first major study to describe the nexus between political power
and large financial interests or business groups in Kazakhstan, identified seven
major business groups, all headed by prominent figures connected with the regime,
which have dominated the economic scene in Kazakhstan since the late 1990s.
30
Five of the seven groups mentioned in this study still remain dominant, albeit
with some restructuring of their leadership, assets and clientele. The seven groups
listed by this study are: (1) The ‘oil group’ headed by Timur Kulibaev, the second
son-in-law of Nazarbaev, who controls the oil monopoly Kazmunaigaz; (2) the
Group of Rakhat Aliev (Nazarbaev’s first son-in-law) and Dariga Nazarbaeva,
wielding control over key sectors of security, taxation and the media, as well as
the sugar, alcohol and entertainment industry; (3) the Kazkommertsbank group,
composed of various young technocrats, who exert vital influence over the
banking, transport and telecommunications sectors; (4) the ‘Eurasia’ Group of
businessman including Aleksandr Mashkevich, who grew up in Kyrgyzstan and
later became an Israeli citizen and controls key metallurgical enterprises; and
(5) the Group of Oleg Li, an ethnic Korean business network with close ties to the
regime, controlling key oil refineries in North Kazakhstan, as well as cosmetics,
computers and information technology. The remaining two groups, which have
undergone considerable restructuring and have practically been dissolved, are: the
‘Astana-Holding’ group of Ablyazov, and the group of Zamanbek Nurkadilov,
a former akim of Almaty city and oblast, who wielded considerable influence
over the construction and agricultural sectors. Although the internal constitution
and financial assets of each have changed considerably, as we will see below, an
analysis of these major business groups offers a starting point for observing how
major financial interests coalesce into rival business clans.
31
Kulibaev headed the oil monopoly Kazmunaigaz, which encompasses the two
major oil companies Kazakoil and Kaztransoil, but stepped down in November
2005. Since then, he has been appointed head of a newly formed entity KazEnergy.
He is widely seen as disengaged from politics and focused on expanding his
148 The nationalizing state: symbols and spoils