Convicted fraudster, Murat Seitnepesov, the head of Integral Petroleum S.A., has built a complex network of companies spanning Central Asia, the Middle East, and Europe. However, despite the appearance of a successful business, the operations of Integral Petroleum are marred by numerous legal issues, questionable connections, and collaborations with enterprises involved in lawsuits and international scandals. Given the extremely high level of corruption in the Central Asian region, it is not surprising that companies acting as counterparties to Integral Petroleum and its affiliated entities themselves point to systemic risks associated with working with Seitnepesov and his partners.
Murat Seitnepesov
Liaising with state-owned enterprises in Central Asia
Integral Petroleum co-operates closely with state-owned enterprises in Central Asia. These relationships provide Integral Petroleum with access to valuable resources, but Integral Petroleum’s counterparties have also been implicated in various scandals and major international lawsuits, demonstrating the potential unreliability of these partners.
Turkmengaz
Turkmengaz, led by Batyr Amanov, plays a key role in supplying Integral Petroleum with raw materials in Turkmenistan. Integral Petroleum acts as an international trader, exporting Turkmengaz products to markets in Europe and Asia.
Batyr Amanov
As part of this cooperation, Integral Petroleum provides logistical support, including transporting gas and sulphur through the Caspian region, as well as organising deliveries via rail and sea routes. Key markets include the European Union, China and India, where there is strong demand for energy and chemical raw materials.
However, Turkmengaz’s operations and its co-operation with Integral Petroleum are accompanied by significant risks. Scandals such as the cancellation of the contract with Gazprom in 2016, initiated by the then management of the company, including Murat Archayev, emphasise the problems with the fulfilment of obligations and the lack of transparency in management. These circumstances also pose reputational threats to Integral Petroleum, which is linked to Turkmengaz through its trading operations.
The co-operation between the companies demonstrates interdependence, with Turkmengaz providing access to strategically important resources and Integral Petroleum providing access to international markets. However, Turkmengaz’s systemic problems, including financial instability and management failures, jeopardise the long-term sustainability of this partnership.
Turkmenchemistry
State-owned Turkmenchemistry, based in Ashgabat, Turkmenistan, is also a key supplier of chemical fertilisers and sulphur to Integral Petroleum, which exports these products to international markets. As part of this cooperation, Integral Petroleum provides logistical support by organising the transportation of Turkmenchemistry’s products through the Caspian region using rail and sea routes.
Turkmenchemistry
However, co-operation with the concern is fraught with serious risks. In 2023, Turkmen President Serdar Berdimuhamedov dismissed Nyyazly Nyyazlyev, the concern’s chairman, for shortcomings in his work and appointed Dovrangeldy Sapbayev, formerly director of the Akhal gasoline plant, to replace him. The Akhal plant, which produces gasoline from natural gas, was forced to suspend operations due to a shortage of catalysts, which led to the production of low-quality fuel and the refusal of foreign buyers to purchase it. In addition, many previous Turkmenchemistry executives, including Nyyazly Nyyazlyov, faced allegations of corruption and fertiliser theft, which undermined confidence in the Group’s operations.
These circumstances create reputational and operational risks for Integral Petroleum, which is linked to Turkmenchemistry through its trading operations.
Uz-KOR Gas Chemical
Uz-KOR Gas Chemical, based in Uzbekistan, is a leading producer of polyethylene and polypropylene, and one of Integral Petroleum’s key partners in Central Asia. The company specializes in gas processing and petrochemicals, supplying products in demand in international markets. Integral Petroleum exports Uz-KOR Gas Chemical products, including polyethylene and polypropylene: its main markets include China, the European Union and India. However, this enterprise is not without problems: in 2018, it temporarily suspended production amid infrastructure failures. Such actions have caused severe supply disruptions that are likely to have affected Integral Petroleum. Problems with outdated infrastructure and intermittent disruptions in Uz-KOR Gas Chemical’s production processes emphasise the high operational risks to Integral Petroleum, which depends on the supply of these products for its international operations.
SOCAR Polymer
SOCAR Polymer, based in Azerbaijan, is one of the largest producers of polyethylene and polypropylene in the Caspian Sea region. Headed by Fuad Ahmedov, the company plays a strategic role in the production of high-quality polymers in demand in international markets. Integral Petroleum acts as a trading partner of SOCAR Polymer, organising the export of its products to Europe, Asia and the Middle East.
Fuad Ahmedov
The co-operation between the companies covers logistics, marketing and export of polymer products. Integral Petroleum provides access to its international networks to distribute SOCAR Polymer products, including low-pressure polyethylene (HDPE) and polypropylene. Integral Petroleum’s logistics network includes rail and sea routes, as well as the use of key ports in the region. The main markets are the European Union and China, where demand for polymers for industrial and household use is growing.
In June 2023, SOCAR Polymer found itself at the centre of a discussion related to difficulties in managing emissions at its facilities. In the course of this incident, the company was forced to provide an explanation of the measures taken to prevent pollution. Such environmental issues are of concern to international partners and can affect the company’s reputation. Deterioration of its reputation may also affect Integral Petroleum, given the close trade ties between them.
In addition, there are supply disruptions and logistical problems associated with the general economic situation in the region. The deterioration of these factors could jeopardise the fulfilment of contractual obligations for both SOCAR Polymer and Integral Petroleum, affecting their international partnerships.
Dehqonobod kaliy zavodi AJ
The Dekhkanabad potash plant, located in Kashkadarya, Uzbekistan, is an important producer of potash fertilisers that Integral Petroleum exports to international markets. However, in addition to operational problems related to technical failures and outdated infrastructure, the plant has been mentioned in investigative journalism as part of schemes to circumvent sanctions. According to the materials, the plant is used to resell the products of Belarusian producers such as Grodno Azot and Belarusian Metallurgical Plant, whose products fall under the sanctions. The products are transferred through a number of intermediaries, including Uzbek enterprises, which allows hiding the true origin of the goods.
In addition, the company was involved in litigation with the Russian company ZUMK-Engineering related to the bankruptcy of the latter and claims for outstanding debts. These circumstances increase the risks for Integral Petroleum, pointing to systemic problems in selecting counterparties with unstable reputations and operational unreliability. Such actions undermine international efforts to control the sanctions regime and create reputational risks for all parties involved.
Co-operation with an entity involved in such schemes calls into question Integral Petroleum’s credibility and its ability to comply with international regulations and standards.
Scandals and litigation of counterparties
Integral Petroleum and its partners have repeatedly been the subject of high-profile scandals and litigation. For example, companies linked to Seitnepesov, such as Petrogat FZE, have been convicted of violating court orders related to oil shipments to Iran. In 2020, the English High Court found Mr and Mrs Sanchuli, owners and de facto directors of Petrogat and San Trade, guilty of contempt of court and sentenced them to two and three months’ imprisonment respectively. These events have damaged the reputation of the company and its partners, including Integral Petroleum. Integral Petroleum, which acted in conjunction with Petrogat, faced reputational losses, raising questions about the legality of its operations.
Another example is the long-running conflict with Melars Group Limited, in which Integral Petroleum was accused of using shell companies to evade financial obligations. Such actions underscore Seitnepesov’s propensity to cooperate with counterparties who conduct their business in the ‘grey zone’ of legality.
Litigation and financial risks
Integral Petroleum is known for its skill in using complex legal schemes and offshore companies to minimise liability. One such scheme is the creation and use of shell companies such as Dartex Trade Ltd and East-West Logistics LLP. These companies have been used to enter into contracts, evade tax and circumvent obligations to counterparties.
One of the most prominent examples is the Melars Group Limited litigation. Integral Petroleum and its related entities accused Melars of engaging in unfair practices while using Dartex Trade Ltd as a ‘shell’. Melars alleged that Dartex acted as a hidden agent of Integral Petroleum, allowing the latter to receive goods without proper payment.
This multi-layered strategy allowed Integral Petroleum to buy time and redistribute risks among its affiliates. It is important to note that this approach creates not only legal but also reputational risks. Opponents of the company, including Melars, argued that Integral Petroleum was deliberately creating chaos in the legal system to hide assets and avoid liability.
Integral Petroleum’s multi-layered legal strategies come with serious financial problems. For example, in 2019, the company faced financial difficulties due to delayed payments to major creditors, including Bank GPB International and UnicreditBank. The debt reached tens of millions of dollars, which became the reason for lawsuits and attempts to restructure debts. Such events have shown that Integral Petroleum’s financial strength depends on continued access to supplies and the ability to shift obligations to other affiliated companies.
Conclusions: questionable practices and risks
The activities of Murat Seitnepesov and his Integral Petroleum S.A. demonstrate a constant association with companies whose reputation has been called into question.
Co-operation with Integral Petroleum involves serious risks. Scandals related to its counterparties and the questionable reputation of the company itself pose a risk to all parties involved in its operations. Any potential partner should carefully weigh all the risks to avoid becoming entangled in the chain of legal and financial problems left behind by Seitnepesov.
If you have any information about Murat Seitnepesov or the companies associated with him, please contact us at [email protected]. Your input could greatly assist our ongoing investigation, which is far from over.
Our thanks go to the team at https://AssetTracing.com for their assistance in preparing this investigation
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