Ukraine detains former energy minister in major anti-corruption case

Ukraine detains former energy minister in major anti-corruption case
Former Ukrainian Energy Minister German Galushchenko attends a press conference at the U.N. nuclear watchdog IAEA in Vienna, Austria 8 March, 2024.
Reuters

Former Ukrainian energy minister German Galushchenko has been detained while attempting to leave the country, anti-corruption authorities said on Sunday.

The National Anti-Corruption Bureau of Ukraine, (NABU), said its detectives detained the former minister “while crossing the state border” as part of Midas case, a wide-ranging investigation into alleged corruption in the energy sector.

The agency did not name him in its statement.

Galushchenko served as energy minister for three years before resigning in November amid the fallout from the scandal. He had also briefly held the post of justice minister. 

NABU said initial investigative actions were under way and that further details would be released in due course.

The Midas case centres on an alleged $100 million kickback scheme involving Ukraine’s energy sector, including the state nuclear operator Energoatom. Investigators allege that several officials and business figures orchestrated a system in which contractors allegedly paid between 10% and 15% of contract values as kickbacks.

At the time of resignation, Galushchenko did not initially respond to requests for comment regarding his involvement in the alleged energy kickback scheme.

Anti-corruption bodies said the funds were laundered and transferred outside Ukraine, including to Russia. Photographs of large amounts of seized cash were previously published as part of the investigation.

The probe, conducted jointly by NABU and the Specialised Anti-Corruption Prosecutor’s Office, followed 15 months of investigation and triggered a political crisis last year.

Galushchenko has previously said he would defend himself against the accusations.

The scandal led to the resignation of two energy ministers and prompted the resignation of President Volodymyr Zelenskyy’s chief of staff, Andriy Yermak, after his home was searched. Neither Zelenskyy nor Yermak have been accused of wrongdoing.

Former Deputy Prime Minister Oleksiy Chernyshov was arrested in November on suspicion of illicit enrichment, having already been charged with abuse of office.

Businessman Timur Mindich, a co-owner of Zelenskyy’s former television studio Kvartal 95, was also named as a suspect and reportedly left the country.

The allegations caused particular domestic outrage because they involved Ukraine’s energy sector at a time when Russia was intensifying attacks on energy infrastructure ahead of winter.

Combating corruption remains a central requirement for Ukraine’s bid to join the European Union. Authorities said further updates on the detention would follow.

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