For years, an astonishing $840 mn fortune amassed by Gulnara Karimova, famously known as "the princess of Uzbekistan," has remained locked away in Swiss bank vaults, a casualty of government orders. The grand saga of a lengthy legal battle waged across the civil courts of Switzerland may soon determine the rightful claimants to this colossal wealth. The contenders? The Swiss and Uzbek governments, the creditors of Zeromax, a sprawling holding company, and Karimova herself, who, at 51, now resides in a Tashkent prison, The Financial Times reports.

After a decade of intensive investigation, Swiss prosecutors dropped a bombshell on September 28: criminal charges against Karimova. This impending trial promises to shed light on the origins of her immense riches and who should rightfully inherit them. The indictment has sparked renewed legal action from Zeromax's creditors.

The rise and fall of Zeromax

In 2010, Zeromax, based in Zug, Switzerland, experienced a catastrophic collapse, leaving behind a staggering debt of $4.6 bn. It marked Switzerland's second-largest bankruptcy at the time. Before its fall, Zeromax had been Uzbekistan's most substantial investor and employer, widely believed to be a front for Karimova's operations.

The creditors of the now-defunct company, a diverse group ranging from Brazilian football stars to craftsmen in Germany's Black Forest, contend that the frozen assets of Karimova should be used to compensate them.

Allegations of Swiss government intrigue

In a case filed in St. Gallen on October 10, Zeromax's creditors allege a multi-year Swiss government conspiracy to obstruct justice and undermine their claims. They claim that Bern aimed to funnel Karimova's fortune back to Tashkent in exchange for diplomatic favours from the Uzbek government. The Zurich-based lawyer leading the case states:

Our clients complain of a conspiracy ongoing since 2017 between high-ranking government members both in Switzerland and Uzbekistan.

The Swiss Federal Department of Finance, named in the lawsuit, strongly refutes the accusations, stating they have no factual basis. The Swiss government maintains that there is no direct link between Zeromax and Karimova. Based on a 2018 court ruling, it asserts that Zeromax was neither controlled by her nor beneficial to her. Consequently, it claims the right to repatriate her assets to the Uzbek government.

Karimova, who continues to protest her innocence concerning Zeromax and other allegations of corruption, asserts that the frozen funds in Swiss banks are rightfully hers, obtained through legitimate means.

The upcoming Swiss criminal trial, for which a date has yet to be set, is eagerly anticipated as a potential resolution to this complex legal entanglement.

Gulnara Karimova once lived a life of opulence and extravagance, flaunting immense wealth and embarking on a series of extravagant ventures. Her role as a UN ambassador granted her diplomatic immunity, but the tides turned as factions in Tashkent moved against her, eventually leading to her imprisonment for corruption in 2020.

Allegations of illicit wealth

Accusations regarding the illicit origins of Karimova's wealth have long circulated. A 2019 indictment from the US Department of Justice, for example, alleges that Karimova received over $850 mn in bribes from international companies vying for contracts in Tashkent. In leaked diplomatic cables from 2010, US diplomats described her as the "single most hated person in Uzbekistan" and a "robber baron" who had a hand in virtually every lucrative business in the country.

What role Zeromax played in the Karimova saga remains an enigma. For Zeromax's creditors, it was not just a part of the puzzle; it was the puzzle's epicentre. Rihm questions why the Swiss government and former prosecutors were adamant about denying this connection.

A battle over diplomatic favours

The creditors assert that Switzerland sought to curry favour with Tashkent by swiftly returning Karimova's wealth. In exchange, the Uzbek government would rejoin the Swiss-led voting bloc at the IMF, known as the "Helvetistan" group.

Tashkent's support holds significant importance for Switzerland's influence at the IMF, offering Bern a seat on the IMF board. Switzerland and Uzbekistan signed an agreement in 2020 to begin returning Karimova's funds.

Yet, as the dispute over this immense fortune rages on, it remains uncertain whether this pledge will ever come to fruition. The trial promises to be a turning point in the protracted battle for the Karimova fortune, and it has the attention of the world.

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