KREMLIN’S PROXIES: How Moscow is trying to secure critical minerals through agents of influence

How Russia is attempting to circumvent sanctions — and why this forms part of a global resource battle

At first glance, it appears a situation remote from Ukraine. In Kazakhstan, ageing oligarchs and their heirs have decided to step back from business, selling their stakes in a vast mining conglomerate. A typical post-Soviet corporate story. But closer examination reveals the Russian trace once more — the Kremlin’s attempts to deploy proxies and "agents of influence"; to maintain control where formally it cannot exist. And this is not merely a local conflict — it is a clear example of how Moscow evades restrictions imposed against it whilst simultaneously attempting to wrong-foot the United States — at the very moment it conducts negotiations with Washington regarding a Ukrainian settlement.

The battle for resources

To understand what is happening in Kazakhstan, one must first comprehend why critical minerals have become "the new oil" — and why a global "war" now rages over them.

Put simply: without cobalt, there are no batteries — neither for Tesla electric vehicles nor military drones. Without copper, there are no data centres for artificial intelligence — and a single such centre consumes as much of this metal as a small city. Without lithium, there are no energy storage systems. Without chromium, no stainless steel for aviation. Without tungsten — no armour-piercing ammunition. Without rare earth elements, there are no missile guidance systems, radars, or magnets for F-35 turbines.

Previously, this was "niche production". Now it is the foundation of the entire economy of the future — from iPhones to fifth-generation fighters. Whoever controls minerals controls technology, which in turn opens control over the future.

There is a second reason: Beijing has systematically captured this market. For decades, the West outsourced extraction and processing of these resources — predominantly to China. A miscalculation! China now controls 70 per cent of global rare earth element production and up to 90 per cent of processing. Two years ago, Beijing began systematically imposing export restrictions on 12 critical metals — yesterday’s business has become today’s geopolitical weapon. The West suddenly realised: they face dependency, as once with Arab oil in the 1970s. Should China "turn the screws" — factories in Detroit, Stuttgart, and Silicon Valley will halt.

And one more reason. War. Russia’s invasion of Ukraine demonstrated: ground forces (upon which Moscow’s military doctrine previously relied) are no longer "instrument number one". What is needed are drones, precision weapons, electronics, air defence systems. And none exist without critical minerals. The United States grasped a simple truth: if China or Russia controls resources — they control weapons production. Should conflict erupt over the Taiwan Strait tomorrow and Beijing sever rare earth supplies — American defence plants will cease operations within months.

Thus began a new strategic competition. Several weeks ago, in early February 2026, the United States convened 54 countries for the inaugural Critical Minerals Ministerial. In the preceding six months, Washington mobilised over $30bn in investments, credits, and guarantees for critical mineral projects. It established the so-called "Project Vault" — a strategic mineral reserve worth $10bn. It launched the Orion consortium to acquire African assets. The same agreement with Ukraine on joint development of titanium, lithium, and uranium was also signed within this same grand strategy.

This is no longer merely business. This is geopolitics. Whoever controls minerals controls technology, the economy, and weaponry.

Kazakhstan: inheritance of three oligarchs

It is precisely in this context that one must view what is now occurring in Kazakhstan.

There exists a company — Eurasian Resources Group (ERG) — around which a tremendous scandal now swirls, actively covered by the Western press. ERG is one of the world’s largest mining companies; it ranks among global leaders in ferrochrome production (first place), and is a major supplier of cobalt, copper, alumina, and aluminium. Beyond Kazakhstan, it operates in Congo (copper, cobalt), Brazil (iron ore), and South Africa.

This story reads like a detective tale from the "turbulent nineties". It was then that three Kazakhstani oligarchs founded the business — Alexander Mashkevich, Patokh Chodiev, and Alidzhan Ibragimov. They were called the "Eurasian Trio". They privatised state mines after the USSR’s collapse, floated the company on the London Stock Exchange in 2007 under the name ENRC, and expanded operations to Africa.

Then troubles began. A Serious Fraud Office investigation into corruption allegations lasted 10 years! Ultimately it was closed, but the reputation was destroyed. The company was delisted, renamed ERG, and ownership changed. And now: 40 per cent is state property of Kazakhstan. And 20 per cent belongs to each of the three founding families.

And here begins the most interesting part. In recent years, two of the founding fathers — Alexander Mashkevich and Alidzhan Ibragimov — have died. The third is already of respectable age — so the families wish to sell their stakes. And here appears a certain Shakhmurat Mutalip.

Mechanic who became… a billionaire

Last December, the authoritative Financial Times published sensational news: little-known thirty-five-year-old Kazakhstani businessman Shakhmurat Mutalip offered nearly one and a half billion dollars for 40 per cent of ERG shares belonging to the Chodiev and Mashkevich families (remember — each oligarch family retained 20 per cent). In parallel, according to the publication, he offered $3.5bn for 70 per cent of Kazzinc — Kazakhstan’s largest zinc producer, owned by Swiss Glencore.

The total value of both deals — approximately 5 billion dollars. A figure comparable to a small state’s annual budget. So where does a simple road builder obtain such money? And might Moscow suddenly stand behind him?

Radio Azattyk (the Central Asian division of Radio Liberty) conducted a detailed investigation into Mutalip’s biography. And established: in 2008 he arrives as a mechanic at a plant producing reinforced concrete railway sleepers. But in the 2020s — sharp career growth. He becomes general director of Integra Construction KZ, a major construction company, and subsequently its beneficial owner. Just three years pass — and we observe a 5 billion dollar offer to purchase Kazakhstan’s largest mining assets. This path from factory mechanic to owner of a company casually throwing around billions appears rather strange.

But that is not all. In parallel, Mutalip acquired Kazakh Construction Group — an asset previously belonging to Kairat Sharipbayev, husband of Dariga Nazarbayeva, daughter of Kazakhstan’s first president. Thus assets of Kazakhstan’s elite pass to the former "sleeper master". Further still: he becomes President of the Kazakhstan Boxing Federation, Vice-President of the National Olympic Committee, Chair of the construction committee of the National Chamber of Entrepreneurs.

State contracts and orders pour continuously onto this company. Last year, Mutalip met personally with President Tokayev twice. This is no longer merely a successful career. This is systematic inclusion of an individual into the highest echelons of power and business at implausible speed. And this whilst even the formal acquisition history of his company, Integra, contains numerous "white spots". And an individual with such biography appears with a 5 billion dollar offer to purchase strategic assets.

The Russian trace

Key evidence of Mutalip’s connection to Russian state structures was obtained by The Insider — an independent Russian investigative outlet. Journalists established — the businessman is well acquainted with Andrei Kostin — president of VTB, who is under personal sanctions from the USA, EU, and United Kingdom. A source close to ERG management confirmed to the publication that Mutalip enjoys VTB support. And this is a classic scheme when Moscow converts debt leverage for concealed ownership control — such cases number in the dozens, if not hundreds.

The Insider also established that Alisher Usmanov, who is under EU sanctions (his assets frozen since 2022) — introduced Mutalip to Russian bankers, connected the Kazakhstani builder with Russia’s banking elite. And when in this chain we observe a sanctioned Russian oligarch; when he is essentially an intermediary in a deal concerning strategic mineral assets across several countries — here we see coordination at a level far exceeding private business!

Mutalip has not yet secured control of the company, but is doing everything possible and impossible to complete the process. And numerous sources are convinced: all this occurs at the Kremlin’s direction, which is once again attempting to secure control over assets whilst formally not violating sanctions.

Here nothing is even concealed: observe for yourself. ERG has 3 billion dollars of debt to Russian VTB. But another portion of debt falls to… Sberbank (both financial structures under US and EU sanctions). Two years ago, Sberbank debt was unexpectedly partially restructured, and 2 billion dollars of VTB debt converted from dollars to yuan — a step exceedingly rare for companies outside Russia (typically undertaken to circumvent Western restrictions). And when business carries such enormous debts capable of bankrupting it, banks completely control it through credit agreements.

A leading American sanctions policy expert

explains how everything functions. A Russian state bank credits some company and does not particularly want money returned, because the task is different — to create debt leverage. The company is forced to obtain a licence from American OFAC (a division of the US Treasury) to pay the sanctioned bank. Next appears a "local businessman" who purchases shares (and formally sanctions are not violated — the buyer is a citizen of Kazakhstan). But actual control lies with Moscow, because the business is bound hand and foot both through debts and through the new owner’s shadowy obligations to Moscow.

The Kremlin’s dark schemes

This entire situation seriously concerns top officials of the State Department and US Energy Department responsible for mineral resources direction — confirmed a diplomatic source in Washington.

The situation acquires additional dimension when one considers that ERG operates not only in Kazakhstan but also in Congo — the world’s largest cobalt producer (70 per cent of global production) and one of the largest copper producers. For before our eyes, Russia is attempting to seize control over ERG assets (including copper and cobalt mines in Congo)! And this whilst the Trump administration attempts to resolve the conflict between Congo and Rwanda in eastern Congo, where ERG’s main assets are precisely located. Thus this is no coincidence! This is Russia, having perceived American interest, deploying a secret front in the war for the same resources!

And this is a model Russia employs everywhere its banks have lent money: formally, a company passes to a "local" businessman; actually — to a Russian state bank. Sanctions are formally not violated: because the buyer (unlike the banks) is not included in sanctions lists. And Kazakhstan now serves as a testing ground for refining these dirty sanctions circumvention schemes. And by irony of fate, all this occurs precisely now — at the moment when Moscow conducts negotiations with Washington regarding pathways to end the war. And when the Kremlin simultaneously promises "golden mountains" if US-Russia relations "reset", and immediately deploys resource warfare against the Americans through its agents of influence.