Nurali Aliyev Announces Departure from Transtelecom

Nurali Aliyev has announced his departure as shareholder and chair of the board of directors of JSC Transtelecom following the sale of his stake in the company, reports Orda.kz.

Aliyev, the grandson of Kazakhstan's first President, Nursultan Nazarbayev, initially acquired 49% of Transtelecom in 2016 through privatization, later expanding his ownership to 75% via Unit Telecom LLP by 2021.

This marks a significant milestone for both myself and the company after more than a decade of involvement. The company has traveled an incredible journey, Aliyev stated, not disclosing specifics of the transaction.

Company Overview and Ownership Structure

The 26-year-old company, which began by serving Kazakhstan's railway sector, evolved into a major player in IT and communications.

As of January 1, 2025, the ownership structure was:

• Unit Telecom LLP (75%) - controlled by Nurali Aliyev and Dmitry Pokazatelev
• Kazakhstan Temir Joly JSC (25%)

Transtelecom faced financial challenges in 2022, recording losses of 11 billion tenge and suspending dividend payments.

The company took steps to improve its financial position in 2023, including early partial repayment of bonds and loans.

Freedom Telecom Transaction

A notable development was Transtelecom's sale of seven data processing centers to Freedom Telecom, associated with businessman Timur Turlov.

The transaction was completed in June 2024.

While specific centers weren't identified, these likely included facilities launched by Aliyev in 2021 across Oral, Aqtobe, Atyrau, Aqtau, Qaraganda, Jezkazgan, and Qyzylorda.

Russia's Safe Information Zone and its Kazakhstan subsidiary, BiZone Kazakhstan Ltd, supplied the centers' equipment.

The company had also entered into substantial contracts with ST Networks LLP for fiber-optic systems.

The centers served major clients, including TNC Kazchrome, ERG, and the National Security Committee.

Recent controversies included a terminated 2.5 billion tenge contract with Kazgeologiya for creating a mineral resource database, resulting in legal action. 

In 2023, Transtelecom faced regulatory scrutiny over a promotional campaign offering complete discounts to competitors' customers, which was challenged by Alma Telecommunications Kazakhstan JSC as unfair competition and subsequently withdrawn following intervention by the Agency for Protection and Development of Competition.

Original Author: Zarina Fayzulina