Belgian oligarch Shukhrat Ibragimov has invested $20 million into a troubled Dubai e-racing and gaming platform whose founder has fled the UAE amid a slew of fraud allegations.
Ibragimov, who was appointed CEO and chairman of Kazakh mining giant Eurasian Resources Group last year, is an investor in the Galaxy Racer platform, which is under fire for owing millions of dollars to stakeholders.
The botched investment in Galaxy Racer is the latest in a string of failing business ventures backed by Shukhrat Ibragimov, which include $23 million put into a struggling Canadian noodle company called Borealis Foods Inc.
Launched in 2019, Galaxy Racer won plaudits thanks to a series of lucrative deals, including a sponsorship agreement with Spanish football league La Liga's esports division.
Although the company initially attracted significant investment, internal turmoil and operational difficulties soon became apparent. Employees have reported delays in receiving payments, and there were several rounds of layoffs as the company struggled with its financial health. In 2023, Galaxy Racer's operations in North America were paused, and by early last year, the company had closed its headquarters in Dubai, and CEO Paul Roy also reportedly fled the UAE amid mounting legal concerns.
Despite still owing millions of dollars to employees, vendors, and esports teams, Galaxy Racer has seemed intent on rebranding itself as a major player in the media and entertainment space. As of mid-2024, Galaxy Racer still owed between $20-30 million in outstanding payments to various stakeholders, including esports teams and content creators.
Ibragimov's misguided $20 million investment in the business is likely to heap further embarrassment on the embattled oligarch, who is already facing questions over his suitability as CEO of Eurasian Resources Group.
Other foreign investments have also attracted unflattering headlines. Among the most prominent foreign projects is Forte Village, a luxury Sardinian resort known for its celebrity clientele. Ibragimov's ownership, however, has been mired in scandal over allegations that he bought it as part of a scheme to protect the asset from seizure after its previous owner, prominent Russian oligarch Musa Bazhaev, was sanctioned by the European Union.
According to reports in the Financial Times, Forte Village is saddled with USD 300 million of loans with sanctioned Russian bank VTB, and Ibragimov is now struggling to woo Western banks to finance the redevelopment of the resort over the scandal.
Before acquiring Forte Village, Ibragimov and his family, including Alijan, were co-investors with Bazhaev and his nephew Deni in Jeruy, Kyrgyzstan's largest gold mine.
Kyrgyz President Sadyr Japarov and Russian President Vladimir Putin inaugurated the mine in 2021. In December 2022, just two months before Ibragimov took ownership of Forte Village, his 40% stake in the mine was transferred to a Russian company controlled by the Bazhaevs. Cypriot records indicate that this company then became the mine's sole shareholder.
The apparent quid pro quo is likely to attract scrutiny, especially following Ibragimov's appointment as chairman and CEO of ERG. In a press release last year, the company praised Ibragimov for his "extensive experience" and "expertise and dedication to the Company's values."
In a statement, the company said: "The newly appointed managers, who have long been involved in the Company's operations and have extensive experience in the industry, will continue to cooperate with the Group's shareholders towards achieving ERG's strategic goals and objectives. Their expertise and dedication to the Company's values will ensure its course remains consistent and stable as part of the Group's natural evolution."
"Our mission remains unchanged: To be the best at what we do and drive global change whilst holding to our values, helping unlock the potential of the Earth and its people and ensure the prosperity of those who rely on us."
