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Ukraine’s former energy minister, a one-time close ally of President Volodymyr Zelenskyy, has been charged by anti-corruption authorities after being detained as he tried to flee the country.
The National Anti-Corruption Bureau of Ukraine (Nabu) said on Monday that a former energy minister was charged with money laundering and alleged involvement in a criminal organisation, without naming the minister. A person involved in the investigation confirmed to the FT that it was German Galushchenko.
Galushchenko’s arrest is the latest development in Ukraine’s biggest wartime corruption scandal, which has rocked Zelenskyy’s leadership and has forced the exit of several of his closest allies, including his powerful chief of staff.
The scandal has added to concerns among Ukraine’s chief partners that the country needs to tackle entrenched graft as it seeks billions more dollars in western support for its war effort and economy, and moves ahead in its effort to join the EU on an expedited timeline.
A Nabu official said its detectives had pulled the former energy minister off a Warsaw-bound train on Sunday after it stopped at the border during a routine passport control check. Nabu said the minister was attempting to flee the country.
Galushchenko faces up to 12 years’ imprisonment and the forfeiture of his property if convicted of the crimes. He denied any wrongdoing after he was implicated last year. He could not be reached for further comment on Monday.
Galushchenko’s arrest follows raids on his home and office last November as part of Nabu’s “Operation Midas” probe into alleged “kickbacks” from contractors hired to build fortifications to defend energy facilities against relentless Russian attacks on critical infrastructure.
The scheme sparked public uproar and posed one of the most serious political threats to Zelenskyy’s administration, which came to power with a historically large mandate and on the promise that it would root out entrenched corruption.
Galushchenko was forced out of the government in November, along with several others allegedly involved in the corruption scandal. Zelenskyy’s chief of staff Andriy Yermak resigned in November after anti-corruption officials raided his residence and offices. He has denied wrongdoing and has not been charged.
Nabu said on Monday that Galushchenko was among ‘‘investors’’ in a fund set up in 2021 by a longtime associate of the criminal organisation’s members who Nabu said “professionally provided services for laundering criminally obtained income”.
Nabu said evidence indicates that during the energy minister’s time in office, with the help of others allegedly involved in the scheme, the group received “over $112 million in cash from illegal activities in the energy sector”.
The funds were laundered through various financial instruments, including cryptocurrency, it added.
The agency’s investigation found that “more than $7.4 million was transferred to the fund’s accounts managed by the suspect’s family” and “an additional 1.3 million Swiss francs and 2.4 million euros were withdrawn in cash and transferred directly to the family in Switzerland”.
“Part of these funds was spent on tuition for the children at prestigious institutions in Switzerland and placed in the ex-wife’s bank accounts,” Nabu said. “The remainder was deposited, generating additional income for the former official’s family, which they used for personal needs.”
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