Ukrainian Ex-Minister Arrested for Alleged Money Laundering Scheme

Corruption Allegations Against Ukrainian Officials

By Dan Peleschuk and Pavel Polityuk

Details of the Money Laundering Scheme

KYIV, Feb 16 (Reuters) - Ukraine's anti-corruption agency accused an ex-energy minister on Monday of laundering millions of dollars of kickbacks in a corruption case that has shaken the wartime government, a day after he was detained trying to leave the country.

Political Repercussions and Public Reaction

German Galushchenko, who served as energy minister from 2021-2025 and then briefly as justice minister until he resigned over the scandal last year, became one of the most senior officials detained in the "Midas" case, over an alleged $100 million kickback scheme at the state nuclear company.

Efforts to Combat Corruption in Ukraine

The case has ensnared senior officials and members of Ukraine's business elite - including a former close associate of President Volodymyr Zelenskiy from his pre-political media career - and caused concern among Kyiv's Western allies.

Galushchenko "was exposed for money laundering and participation in a criminal organisation" by corruption investigation agency NABU and its prosecuting sister agency SAPO, according to a statement from NABU.

It said more than $7 million had been transferred to foreign accounts naming Galushchenko's wife and four children as beneficiaries. Some was spent on educating the children at elite schools in Switzerland and some placed in "a deposit, from which the family of the high-ranking official received additional income and spent it on their own needs".

Galushchenko has denied wrongdoing. There was no reply to a message sent to him seeking comment and Reuters was unable to locate a lawyer representing him.

NABU had said on Sunday that he was detained "while crossing the state border", without specifying where the arrest took place.

MILLIONS OF DOLLARS IN PAYMENTS

Prosecutors say participants in the Midas scheme squeezed nuclear company Energoatom's contractors for bribes to complete projects, including structures to protect energy facilities from Russian airstrikes.

They had previously said the plot was organised by former Zelenskiy associate Timur Mindich, who fled to Israel before he could be arrested in November. Mindich, who founded the TV studio behind the hit sitcom that brought Zelenskiy fame as an actor before he entered politics, has denied wrongdoing.

A former deputy prime minister was arrested in November and NABU has said other former senior officials are under investigation.

The case sparked a political scandal last year that led to the ouster of Zelenskiy's chief of staff, Andriy Yermak, and fuelled new public anger at lingering corruption as Ukraine fights Russia in its four-year war.

Zelenskiy had tried to limit the independence of the anti-corruption agencies last year before reversing in the face of public protests and pressure from Western allies.

Energoatom CEO Pavlo Kovtonenko told Reuters last week that the company had taken a number of steps to prevent the recurrence of corruption schemes in the future.

Battling corruption is a key priority in Ukraine's reform effort as it eyes membership of the European Union, which requires the country shake off the decades-old scourge of graft.

(Reporting by Dan Peleschuk and Pavel Polityuk; Writing by Dan Peleschuk; Editing by Daniel Flynn, Peter Graff)