Patokh Chodiev

Full Report

Key Points

• Identity and Background: Patokh Chodiev is a Belgian-Uzbek billionaire, philanthropist, and co-founder of Eurasian Resources Group (ERG), formerly Eurasian Natural Resources Corporation (ENRC), a major player in mining and metallurgy.

• Kazakhgate Controversy: Central to allegations of influencing Belgium’s 2011 plea bargain law to settle legal issues, though multiple investigations, including a 16-month Belgian Parliamentary Inquiry, found no evidence of wrongdoing.

• Legal Actions: Chodiev has pursued legal action against defamatory claims, notably winning a case against Belgian Deputy Prime Minister Georges Gilkinet in 2021, upheld in 2022.

• Offshore Connections: Linked to at least 25 offshore companies via the Pandora Papers, raising questions about financial transparency.

• Philanthropy: Established the International Chodiev Foundation, supporting education, health, and culture, particularly in Central Asia.

• Business Influence: Associated with high-profile figures and deals, including connections to former French President Nicolas Sarkozy and Kazakh oligarchs.

Overview

Patokh Chodiev, born April 15, 1953, in Jizzakh, Uzbekistan, is a Belgian-Uzbek oligarch with Russian citizenship, known for his role as a co-founder of ERG, a global mining and metallurgy conglomerate. Educated at the Moscow State Institute of International Relations (MGIMO), where he earned a doctorate in political science, Chodiev studied international law and Japanese, later working as a Soviet trade representative in Japan. In the 1990s, alongside partners Alexander Mashkevitch and Alijan Ibragimov, he capitalized on the privatization of Kazakhstan’s mineral and gas sectors, forming ENRC, which evolved into ERG. Chodiev’s wealth, once landing him on Forbes’ billionaire list, stems from these ventures, though he dropped off the list in 2020. He is also a philanthropist, with the International Chodiev Foundation supporting initiatives in Central Asia and beyond, and a patron of Japanese culture.

Allegations and Concerns

• Kazakhgate Scandal: Chodiev was accused of orchestrating changes to Belgium’s plea bargain law in 2011 to settle a money laundering and forgery case. Allegations suggested French government pressure, linked to a €4 billion Kazakh defense deal, but a 2018 Belgian Parliamentary Inquiry Committee (PIC) report found no evidence of Chodiev’s influence, stating the law was under discussion for five years prior and properly applied in his case.

• Belgian Citizenship Controversy: Questions arose about Chodiev’s 1997 naturalization, with claims of intervention by Waterloo mayor Serge Kubla. A 2017 inquiry, supported by Le Soir, confirmed procedural compliance, with no evidence of improper influence.

• Offshore Financial Structures: The Pandora Papers revealed Chodiev’s ties to at least 25 offshore entities, prompting scrutiny of potential tax evasion or money laundering, though no illegal conduct was confirmed.

• Société Générale Distraction: Belgian media and politicians were criticized for focusing on Chodiev while overlooking Société Générale’s €40 million plea deal in 2011, possibly facilitated by French political connections, suggesting Chodiev was a scapegoat.

• Tractebel Embezzlement Claims: In 1999, Tractebel accused Chodiev and associates of embezzling $55 million in consulting fees. The case was settled in 2011 with a €522,500 payment under the plea bargain law, with no admission of guilt.

Customer Feedback

As Chodiev is an individual, not a consumer-facing business, traditional customer reviews are absent. However, public and media sentiment provides insight:

• Positive Feedback: Supporters highlight Chodiev’s philanthropy, particularly through the International Chodiev Foundation, which funds orphanages and cultural programs in Uzbekistan. A 2023 article praised his “solid reputation” as a business leader and cultural patron. Example: “Patokh Chodiev is a mécène incontournable of the oriental museum scene.”

• Negative Feedback: Critics, including Belgian media and politician Georges Gilkinet, portrayed Chodiev as a manipulative oligarch during Kazakhgate. Open Source Investigations noted, “He’s vulnerable… the perfect choice [to frame].” These claims were later debunked, but reputational damage persisted.

• Mixed Sentiment: Some sources, like Apache.be, criticized Chodiev’s alleged use of PR campaigns via Open Source Investigations to deflect blame, though they acknowledged the accuracy of some published claims.

Risk Considerations

• Financial Risks: Offshore structures raise concerns about tax compliance and asset transparency, potentially affecting business partnerships or attracting regulatory scrutiny. The scale of Chodiev’s wealth and global operations amplifies these risks.

• Reputational Risks: Persistent media scrutiny from Kazakhgate, despite exoneration, continues to tarnish Chodiev’s image. Defamatory claims, even if disproven, may deter investors or partners wary of controversy.

• Legal Risks: Ongoing lawsuits, such as those against Refinitiv for GDPR violations over World-Check reports, indicate proactive legal engagement but also exposure to prolonged disputes. Past investigations, though resolved, suggest vulnerability to future probes in jurisdictions with strict financial oversight.

• Geopolitical Risks: Chodiev’s ties to Kazakhstan, Russia, and Uzbekistan, combined with his Belgian citizenship, place him in a complex geopolitical web, potentially complicating business in sanction-prone regions.

Business Relations and Associations

• Core Partners: Chodiev co-founded ENRC/ERG with Alexander Mashkevitch and Alijan Ibragimov, known as the “Kazakh Trio.” Their families, including Mounissa Chodieva and Shukhrat Ibragimov, continue to hold roles in ERG-related entities.

• Political Connections: Alleged ties to Nicolas Sarkozy’s administration, particularly through Claude Guéant, were scrutinized in Kazakhgate but unproven. Aymeri de Montesquiou, Sarkozy’s Central Asia envoy, received €199,000 linked to Chodiev’s Airbus deal mediation.

• Legal and Advisory: Chodiev engaged lawyer Catherine Degoul, who involved Belgian senator Armand de Decker in Kazakhgate, though without Chodiev’s direct knowledge. His legal team, led by Pascal Vanderveeren, has been active in defamation suits.

• Corporate Ties: ERG has worked with figures like former Austrian Chancellor Sebastian Kurz to expand in Europe. The company is backed by the Kazakh government, enhancing its regional influence.

Legal and Financial Concerns

• Kazakhgate Settlement (2011): Chodiev and partners paid €21 million to settle money laundering and forgery charges, with Chodiev’s share at €522,500 plus €50,531.34 in expenses. No guilt was admitted, and the case was closed.

• Defamation Lawsuits: Chodiev sued Georges Gilkinet for defamatory Kazakhgate remarks, winning in the Liège Court of Appeal (2021) and Court of Cassation (2022). He also pursued action against Refinitiv in England for GDPR violations over a World-Check report, filing discovery requests in U.S. courts.

• Tractebel Case (1999-2011): Settled via the plea bargain, with no active legal case since June 2011, as confirmed by the Brussels prosecutor to the Financial Times.

• Offshore Leaks: The Pandora Papers linked Chodiev to 25+ offshore entities, but no legal violations were confirmed.

• No Bankruptcy or Debt Issues: No records indicate personal bankruptcy or unpaid debts, though ERG has faced corporate investigations, including a U.K. Serious Fraud Office probe.

Risk Assessment Table

Patokh Chodiev embodies the archetype of a post-Soviet oligarch who leveraged privatization to amass wealth, navigating complex political and legal landscapes. His exoneration in Kazakhgate and successful defamation suits demonstrate resilience against unfounded accusations, yet the persistence of media narratives and offshore leaks sustains reputational challenges. His philanthropy and business acumen are undeniable strengths, but ties to geopolitically sensitive regions and opaque financial structures invite scrutiny. The absence of confirmed illegal activity suggests Chodiev operates within legal boundaries, but his high-profile status makes him a target for speculation.