The US is reportedly seeking to seize US$ 1 billion in European assets as part of investigation into alleged corruption between three major telecoms companies and Gulnara Karimova, daughter of Uzbek President Islam Karimov, the
Wall Street Journal
reported on August 13.
According to the report, Amsterdam-based Vimpelcom Ltd, Mobile TeleSystems PJSC of Russia and Sweden’s TeliaSonera AB reportedly funneled hundreds of millions of dollars to businesses controlled by Karimova in order to obtain telecommunications deals in the country.
In June, the US Justice Department filed a complaint with a New York court to ask Ireland, Belgium and Luxembourg to freeze circa $300 million held in bank accounts in those countries.
In March, they requested Sweden’s assistance in restraining another $30 million. US authorities requested that Switzerland freeze $640 million as part of the same probe, including a lake-side villa, according to the WSJ report citing court documents and people familiar with the matter.
The report indicates that the three telecom companies funneled funds to front companies, whose beneficial owner is Gulnara Karimova. They used complicated schemes, which included selling stakes to companies linked to Karimova and then buying them back at significantly higher rates.
The investigation is described as “one of the biggest recent moves by U.S. authorities targeting what prosecutors believe are the spoils of alleged corrupt activities overseas.”
It is noted that TeliaSonera owns a majority share of Azerbaijan’s largest mobile operator, Azercell, according to a report released by
OCCRP
in May. Reports by imprisoned investigative journalist Khadija Ismayilova revealed that daughters of Azerbaijani President Ilham Aliyev are connected to Azercell through a trail of owners and offshore registrations.
