Kazakhstan: Financial Regulator Issues Order to Eurasian Financial Company Amid Shareholder Dispute

The Agency for Regulation and Development of the Financial Market (ARDFM) has issued an order against the Eurasian Financial Company (EFCO), which has recently become the focus of a shareholder conflict, Orda.kz reports.

According to the regulator, the company violated requirements aimed at minimizing risks and improving its financial condition, as well as measures of supervisory regulation. The agency also cited inconsistencies between EFCO’s operations and the law “On Banks and Banking Activities in the Republic of Kazakhstan.”

The order is dated September 10.

EFCO has long been linked to the joint ownership of Eurasian Resources Group (ERG) by Patokh Chodiev, the Ibragimov family, and the heirs of the late Alexander Mashkevich. Through EFCO, the shareholders also exercise control over Eurasian Bank. Tensions reportedly escalated after Mashkevich’s death, when disagreements emerged over the future sale of EFCO’s assets.

In late August, a court in Almaty began reviewing mutual lawsuits filed by Chodiev and EFCO. The businessman, who holds one-third of the company’s shares, is seeking to invalidate decisions made by the board of directors and has demanded one million tenge in moral damages.

Original Author: Nikita Drobny