An obscure firm linked to the household of the Uzbek president secured greater than $100 million in secret authorities contracts, together with the provision of overpriced pure gasoline to the nation’s largest cement producer. RFE/RL investigation was discovered.
Profitable authorities contracts secured by shadow agency Ultimo Group Restricted spotlight how political insiders — together with family of President Shavkat Mirziyoev — and their associates revenue from what critics name endemic cronyism on the highest ranges of the Uzbek authorities.
An RFE/RL Uzbek investigation discovered associates of Mirziyoev’s son-in-law linked to Ultimo Group, a just about unknown firm that gained a authorities contract to promote overpriced pure gasoline value a minimum of $36 million to Uzbek cement large Qizilqumsement. — state-owned on the time — regardless of having no enterprise data.
Paperwork obtained by RFE/RL Uzbekistan additionally present that Ultimo Group obtained greater than $66 million from state gasoline transit monopoly Uztransgaz and that the corporate imported practically 1 billion cubic meters of gasoline from Turkmenistan.
The investigation discovered that the Ultimo Group is linked to a byzantine community of firms run by associates of Mirziyoev’s son-in-law, Otabek Umarov, a sports activities supervisor and Mirziyoev’s deputy safety chief. Umarov is married to Mirziyoev’s daughter, Shahnoza.
A central determine on this community is Azizjon Kamilov, a confidant of Umarov who serves as head of the Uzbekistan Judo Federation and deputy head of the nation’s Olympic Committee.
Umarov can be broadly seen as a behind-the-scenes energy dealer amongst political and financial elites in Uzbekistan.
Regardless of its sudden and profitable rise, Ultimo Group stays a company phantom. He has no working web site or public profile and is co-owned by a retiree with no obvious enterprise expertise.
RFE/RL reached out to Umarov and several other Uzbek authorities businesses for remark, however none responded in time for publication. Mirziyoyev’s workplace additionally didn’t reply to inquiries.
Fuel collusion
Ultimo Group was based within the capital of Uzbekistan, Tashkent, in March 2021 and formally registered in a residential condo.
Its founding shareholders had been Dilyor Kayumov, who was a member of a bunch of expatriate Uzbek supporters of the president, and Tuhfat Anvarkhujaev, whose father served in Uzbek state safety.
A few month after it was based, Ultimo Group signed a state contract with Qizilqumsement, then 86 p.c owned by the federal government, though reporters discovered no report of different bids for the contract.
An RFE/RL evaluation of the contract discovered that it was value a minimum of $36 million in gasoline provides and that Qizilqumsement, which has since been privatized, may pay a 50 p.c premium over the speed it may have obtained from the state.
Why Qizilqumsement would overpay to purchase gasoline from an middleman stays unclear, particularly in gentle of a 2019 authorities regulation that makes Uztransgaz the only real direct provider of pure gasoline to key shoppers.
Written inquiries to Qizilqumsement and Uztransgaz remained unanswered on the time of publication. Anvarkujaev stated the details about Ultimo Group’s income constituted a “commerce secret”.
Uztransgaz additionally made a minimum of eight wire transfers totaling $66.6 million to Ultimo Group from January to September 2022, financial institution data present, below a fee settlement whose particulars stay withheld from the general public.
Together with greater than 955 million cubic meters of pure gasoline that Ultimo Group imported from neighboring Turkmenistan, the corporate was concerned in pure gasoline transactions totaling practically $200 million, an RFE/RL evaluation discovered.
The Vanishing
There isn’t any proof that Ultimo Group has been doing enterprise within the Uzbek gasoline market previously 18 months after its preliminary profitable authorities contracts.
Founding shareholder Kayumov, who didn’t reply to a written inquiry despatched to his Instagram account, transferred his 50 p.c stake within the firm to his 67-year-old mom, who has no earlier enterprise report.
The opposite founding shareholder, Anvarkhujaev, who was photographed along with Kamilov, retained his 50 p.c stake in Ultimo Group.
He declined an RFE/RL interview, however stated in emailed feedback that he had no relationship with Umarov, whereas describing his relationship with Kamilov as “pleasant.” He stated Umarov and Kamilov had “nothing to do” with the Ultimo Group.
Ultimo Group is presently “concerned in funding tasks within the oil and gasoline sector” however not imports gasoline, Anvarkhujaev stated.
Ultimo Group Restricted Web sitein the meantime, it stays below building greater than three years after its inception.