When the Kazakh government blessed the appointment of Shukhrat Ibragimov as chair and CEO of mining giant Eurasian Resources Group last year, it appears its due diligence amounted to the merest of glances at his CV.
Had anyone bothered to scratch beneath the surface of Ibragimov Junior’s glittering self-promotion, Kazakh ministers would have unearthed the reality of his car crash career. They would also perhaps be feeling less fretful about the fate of one of the country’s most prized economic assets – particularly given the state holds a 40% stake in the business.
The truth of Belgian businessman Ibragimov’s track record – an astonishing catalogue of unmitigated flops – has sent panic rippling through Astana and left many in the government questioning the wisdom of handing responsibility for ERG to such an untested apprentice. Some ministers, who eagerly rubber stamped the decision to appoint fresh-faced Ibragimov believing him to be a pliable puppet, are beginning to fear for their heads as the appointment shows signs of unravelling.
Long eclipsed by his father Alijan, one of the three architects of ERG, Shukhrat appears to have inherited all of his father’s wealth and none of his business nous. His career has lurched dramatically from one disastrous investment to another. We have already revealed how Ibragimov ploughed $23 million he is unlikely to see again into Borealis Foods, a failing noodle business launched by his friend and fellow oligarch Kenes Rakishev.
But sadly for Ibragimov, and for the red-faced Kazakh ministers, Borealis appears to be no one-off. Take Eurasian Space Ventures: when Ibragimov launched the project in December 2019, it had the ambitious goal of emulating Elon Musk’s SpaceX and launching cutting-edge space missions. But the project’s trajectory has been anything but upward. Despite much-trumpeted partnerships in Kazakhstan and China, the company has not got off the ground. Not only has the company failed to acquire necessary licences to operate legally in Kazakh airspace, it has also failed to report any revenue since its inception, and corporate records show no evidence of employees or active operations. The official ESV website, once a hub for press releases and updates, has displayed a blank page with a “renew your subscription” message since March 2023.
Another Ibragimov-inspired flop is Biteeu, a cryptocurrency exchange platform hailed as rising star in the world of digital asset trading at its launch in 2019 but has proved to be an utter failure. Despite the fanfare, it has no customers, and its official website has been “under maintenance” since January 2024. Its mobile app has a meagre rating of 1.5 out of 5 on Google Play, with fewer than 1,500 downloads, while the company YouTube channel, once a promotional tool for the company, has accumulated only 12 subscribers. Biteeu's troubles came to a head in mid-2024 when it missed the deadline for submitting its annual report. This prompted the Estonian business registrar to step in and issue a notice of potential deletion from the business register, signalling the company’s serious operational issues.
After trying his hand (and failing) at rocket science and cryptocurrency, it appears Ibragimov gave the music industry a go. He claims to have founded SPRK Music, an online platform designed to help artists gain expose and grow their careers. However, much like Ibragimov’s other ventures, SPRK Music’s bold ambitions have faded to nothing. Despite a promising launch, SPRK Music’s financial health paints a picture of a company struggling to stay afloat. The most recent financial report for controlling company Sprkle Music Ltd., as of December 2022, shows liabilities exceeding £931,966 - up from £638,548 in 2021. The platform’s impact has been limited with only 10,000 downloads on Google Play. The company’s YouTube channel, launched in May 2021, has accumulated a meagre 10 subscribers, and its videos have failed to generate any significant viewer engagement.
If that weren’t enough, another of Ibragimov’s much-vaunted projects has also hit the skids. In 2022, Ibragimov invested $20 million into Galaxy Racer via a Hong Kong-based trust. However, the company, once touted as a rising force in esports and digital content, has spiralled into turmoil since its founding in 2019 by Paul Roy.
Initially a trailblazer in influencer marketing and gaming, the company quickly gained attention with high-profile partnerships and ambitious goals. However, by 2023, Galaxy Racer faced mounting financial troubles, operational failures and a growing list of unpaid employees and vendors.
Despite flashy ventures like cryptocurrency start-up Quint and esports partnerships with La Liga, the company’s fortunes have faltered. Operational issues led to layoffs, delayed wages and unfulfilled contracts. By 2024, Galaxy Racer’s Dubai headquarters had closed, and CEO Paul Roy fled amid legal concerns. With debts reaching up to $30 million, the company pivoted to launching a football streaming service in India, but continued to alienate employees, vendors and esports teams with unpaid contracts and broken promises.
The evidence of Ibragimov’s anti-Midas touch is utterly damning. The question now on the lips of Kazakh ministers and ERG investors alike: Is ERG next to suffer the fate of every other Ibragimov business flop?
Source: www.rucrimianal.info
