Ukraine: Former Energy Minister German Galushchenko Accused of Money Laundering

Ukraine’s anti-corruption agencies have detained former energy minister German Galushchenko over allegations of laundering millions of dollars in kickbacks from the energy sector, a case that has intensified public outrage over corruption during the war with Russia.

Ukraine’s anti-corruption authorities, the National Anti-Corruption Bureau of Ukraine and the Specialized Anti-Corruption Prosecutor's Office of Ukraine, announced on Monday that they have uncovered an alleged large-scale money-laundering operation involving a former minister responsible for the country’s energy sector. According to investigators, the former official is suspected of laundering millions of dollars obtained through illegal kickbacks while in office.
Although the authorities initially refrained from publicly naming the suspect, the announcement followed closely after the detention of German Galushchenko. Galushchenko served as Ukraine’s energy minister from 2021 until 2025 and was later appointed justice minister, a position he held briefly before resigning amid controversy in the same year. He was detained on Sunday while allegedly attempting to leave the country, having previously denied any involvement in wrongdoing.
In a statement, NABU said the suspect had been exposed for money laundering and for participation in a criminal organization that allegedly generated more than $112 million, or about €94 million, through unlawful activities connected to the energy sector during his tenure. Investigators claim the scheme involved a network of accomplices who took deliberate steps to conceal the origin of the funds and channel them through offshore structures.
As part of the alleged operation, the accomplices reportedly registered an investment fund on the Caribbean island of Anguilla in 2021. The stated aim of the fund was to raise approximately $100 million in investments, but anti-corruption officials say it was instead used as a vehicle for laundering illicit proceeds. The fund was allegedly managed by a long-time associate of the group, a dual citizen of the Seychelles and St. Kitts and Nevis, who is accused of providing professional money-laundering services.
Investigators further stated that members of Galushchenko’s family were among the investors in the fund. More than $7 million was allegedly transferred to foreign bank accounts listing his wife and four children as beneficiaries. According to prosecutors, part of the money was used to pay for the children’s education at elite schools in Switzerland, while another portion was placed in deposit accounts that generated additional income for the family and financed their personal expenses.
Galushchenko is considered one of the most senior officials to be detained in connection with the so-called “Midas” case, which centers on an alleged $100 million kickback scheme involving the state-owned nuclear energy company Energoatom. The case has drawn significant public attention due to its scale and the seniority of those implicated.
The investigation triggered a major political scandal last year, culminating in the dismissal of the chief of staff to President Volodymyr Zelenskyy, Andriy Yermak. It also intensified public frustration over persistent corruption at a time when the country is fighting for survival amid Russia’s full-scale invasion.
At the heart of the case are alleged bribes paid in connection with contracts for constructing protective devices intended to shield energy facilities from Russian airstrikes. In mid-November 2025, Galushchenko, who had by then been appointed justice minister, was dismissed alongside his successor as energy minister, Svitlana Hrynchuk.
Both officials had previously claimed that the scheme was orchestrated by a former associate of President Zelenskyy, Timur Mindich, who reportedly fled to Israel before he could be arrested in November. Mindich, known for founding the television studio behind the popular sitcom that launched Zelenskyy’s acting career prior to his entry into politics, has denied all allegations of wrongdoing.