KazakhGold Refunds $32 million VAT to the Republic of Kazakhstan Budget

July 23. KazakhGold

KazakhGold Refunds $32 million VAT to the Republic of Kazakhstan BudgetKazakhGold Group Limited is pleased to announce that its subsidiary  AO “GMK “Kazakhaltyn” has today  voluntarily refunded VAT worth 4.667.039.475 tenge (around $32 mln) to the Republic of Kazakhstan budget. The  funds were provided by the controlling shareholder of KazakhGold Group Limited – Russia’s largest gold producer “Polyus Gold”.

The VAT was previously illegally refunded out of the state budget by the former management of the enterprise during 2007-2009 based on fictitious contracts. These contracts served as the basis for illegal payments  out of the Company and the Kazakhstan economy.

At present, the illegal actions of the former management of KazakhGold are subject to legal proceedings at the High Court in London.

The management of KazakhGold Group Limited previously stated their willingness to return these illegally obtained funds to the Kazakhstan budget and to invest in the Republic of Kazakhstan economy.


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Kazakhstan Withdraws Approval From Polyus Gold

July 23. Bloomberg. MOSCOW

Kazakhstan’s Antitrust Agency suspended the approval it gave in 2008 for Russia’s Polyus Gold to acquire a controlling stake in KazakhGold Group, threatening Polyus’s plans for a U.K. share listing.

“The Antitrust Agency decided to suspend the approval it had granted,” the watchdog said Wednesday on its web site.

KazakhGold shareholders were due to vote July 27 for a so-called reverse takeover improving parent Polyus’s access to the London share market. Kazakh financial police began probing share dealings in KazakhGold on July 14 and the planned takeover may be delayed, Vedomosti said Thursday, citing unidentified officials.

The Industry and New Technologies Ministry on July 12 also annulled approval for the sale of KazakhGold shares to Polyus.

“It was the former management of KazakhGold, headed by Kanat Assaubayev, who received all necessary approvals for the 2009 deal on the Kazakh side and any claims should be addressed to them,” Polyus said in an e-mailed response to questions.

The Assaubayev family said in a statement on July 16 that it understood Kazakh authorities had begun proceedings against the management of KazakhGold, including Chairman Yevgeny Ivanov, who is also chief executive officer of Polyus Gold.