Ukraine’s Graft Probe Engulfs Ex-Minister After Failed Escape

German Galushchenko, former Ukrainian energy minister Photo by Benjamin Girette /Photographer: Benjamin Girette/BArticle content(Bloomberg) — A former Ukrainian energy minister has become a suspect in a far-reaching corruption investigation that shook the administration of President Volodymyr Zelenskiy and forced out his top aide last year.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe former minister was handed a notice of suspicion as one of the beneficiaries of an offshore fund set up to funnel embezzled money, the National Anti-Corruption Bureau said on its website on Monday.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIn line with Ukrainian law, NABU didn’t name the ex-minister in its statement but did mention the suspect’s years in office in the role. Those correspond to the tenure of German Galushchenko, who NABU said was detained Sunday while trying to leave Ukraine. He earlier denied any wrongdoing.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentGalushchenko’s failed attempt to flee marks a new stage in the probe by NABU and the Specialized Anti-Corruption Prosecutor’s Office into high-level graft. Any corruption in the energy sector is politically sensitive in Ukraine, where Russian attacks on power infrastructure have left civilians without power and heating amid freezing temperatures.Article contentA graft scandal which erupted last year resulted in the dismissal of Andriy Yermak, an influential aide to Zelenskiy and lead negotiator in talks with the US. It came amid US President Donald Trump’s renewed efforts to broker an end to Russia’s full-scale invasion.Article contentInvestigators say that Galushchenko and his family were shareholders in a fund set up on the island of Anguilla, a self-governing British Overseas Territory, which was used by a group of businessmen and officials in order to manage the proceeds of corrupt schemes. Article contentArticle contentNABU said the criminal organization received more than $112 million in cash from illegal activities in the energy sector, laundering them via various financial instruments, including cryptocurrency and “investments” in the fund.Article contentZelenskiy unsuccessfully sought to put Ukraine’s independent anti-graft agencies under his control last year, triggering unprecedented protests and condemnation from Western allies. NABU and SAPO maintained their independence and followed with a sweeping energy graft probe dubbed “Operation Midas,” an allusion to a king from Greek mythology who was granted the power to turn everything he touched into gold. Article contentThe operation is only one of many graft probes NABU and SAPO are pursuing. Just three days ago, NABU said it uncovered a group of local businessmen and officials in Kharkiv who embezzled money intended for the reconstruction of critical infrastructure in the war-ravaged city in the country’s east, including 22 million hryvnia ($510,000) provided by the World Bank. Article contentTrending Subscriber only. 'We need to wake up': Atlantic Canada a microcosm of the problems facing the rest of the country Subscriber only Economy Canadians Say They'll Buy Cheaper Chinese EVs as Tariffs Drop PMN Business Subscriber only. 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'We need to wake up': Atlantic Canada a microcosm of the problems facing the rest of the country Subscriber only Economy Canadians Say They'll Buy Cheaper Chinese EVs as Tariffs Drop PMN Business Subscriber only. Donald Trump plans to roll back tariffs on steel and aluminium goods Subscriber only Financial Times Avoid these TFSA and RRSP mistakes to keep the CRA off your back Personal Finance 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate