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Kazatomprom's former director found guilty of selling uranium at a diminished rate

Imprisonment term imposed for four years and six months.

Imprisonment term set at 4 years, 6 months for the individual.
Imprisonment term set at 4 years, 6 months for the individual.

Kazatomprom's former director found guilty of selling uranium at a diminished rate

Former Kazatomprom Commercial Director Convicted for Uranium Sale Violations

In a recent court ruling, Askar Batyrbayev, the ex-Chief Commercial Officer of JSC National Atomic Company "Kazatomprom," has been sentenced to 4.5 years in prison for abuse of office. Batyrbayev's conviction stems from allegations that he negotiated 13 uranium concentrate supply contracts with foreign firms at prices below market rates, in breach of company practices.

The Astana court alleged that Batyrbayev signed these contracts after the two-month deadline for negotiations, and that their sale price was lower than the average market value at the time of offer. This criminal scheme resulted in an estimated ₸20.1 billion loss to the Samruk-Kazyna sovereign wealth fund. Batyrbayev received a performance-based bonus of approximately ₸9 million as a result of the underpriced contracts.

During the trial, Batyrbayev denied any wrongdoing, claiming pricing was approved at board level and that discounts were agreed upon according to established procedures. However, the court found him guilty and imposed a sentence of 4.5 years, confiscation of property, a lifetime ban from holding government positions, and a recommendation to have the state award, the medal "Eren enbegiі," revoked.

The court also upheld a civil claim by the injured party for more than ₸20 billion. The verdict is not yet in force.

Quoted from the court's statement, Batyrbayev's sentence was imposed for "abuse of official powers."

Separate reports indicate that Kazatomprom’s revenue increased by 26% due to the growth in uranium prices and that the company is set to begin supplying uranium for nuclear power plants in the Czech Republic. These reports are noteworthy but not directly related to the discussed trial and conviction of Askar Batyrbayev.

In the context of Askar Batyrbayev's conviction, it is important to note that his actions potentially impacted various sectors of the Kazakhstani economy, particularly the finance, energy, and industry sectors. The underpriced contracts he negotiated may have affected the profit margins of these sectors by resulting in a significant loss to the Samruk-Kazyna sovereign wealth fund. Additionally, Batyrbayev's sentence was imposed for abuse of official powers within the uranium industry.

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