Ukraine's $100 Million Energy Corruption Scandal: Operation Midas Explained
Anti-corruption investigators continue to topple senior Ukrainian officials as part of a massive graft probe that has rocked the government at a critical diplomatic juncture. The latest high-profile arrest involves former energy minister German Galushchenko, detained by border guards on Monday as he attempted to leave the country via train.
Officials confirmed that Ukraine's anti-corruption agency has accused Galushchenko, who led the energy department from 2021 until 2025, of laundering millions of dollars through an alleged scheme involving offshore companies that benefited his relatives. The former minister, also known as Herman Halushchenko, has firmly denied any wrongdoing.
What Is Operation Midas?
Operation Midas represents a sweeping investigation into allegations of corruption surrounding state nuclear power company Energoatom. Announced last November by the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor's Office (SAPO), the probe takes its name from the king of Greek mythology who turned everything he touched into gold.
Investigators revealed that their discovery resulted from fifteen months of intensive wiretapping work, citing one thousand hours of audio recordings and more than seventy raids. At the heart of the investigation lies $100 million in funds that NABU alleges were laundered by a criminal organization consisting of current and former energy officials, government ministers, a former deputy prime minister, and a prominent businessman.
The accused are said to have manipulated contracts at Energoatom to receive kickbacks - secret payments made in exchange for favors. According to NABU, the group accepted bribes from contractors worth approximately ten to fifteen percent of each contract's total value. Crucially, some of these contracts were specifically awarded to build fortifications against Russian attacks on Ukraine's energy infrastructure.
Who Has Been Affected by the Investigation?
The corruption scheme has reportedly been traced to Timur Mindich, a film producer and co-owner of Ukrainian president Volodymyr Zelensky's former television studio, Kvartal95. Mindich fled Ukraine on the night of November 10, 2025, just hours before NABU enforcers raided his residence. The two men maintained a close relationship until at least 2021, when Mindich hosted a surprise party for Zelensky at his apartment during pandemic lockdowns.
This ongoing case has significantly shaken Ukraine's top leadership, leading to the resignation last year of Zelensky's chief of staff, Andriy Yermak, following a raid on his home. Although Yermak was not formally accused of wrongdoing, he stated he would cooperate fully with investigators.
Prosecutors have additionally claimed that Rustem Umerov, former defence minister and current secretary of Ukraine's State Security and Defense Council, faced pressure to purchase cheaply manufactured Chinese bulletproof vests at extortionate rates. Umerov has not been charged and has denied any misconduct, explaining that the contract was terminated due to the product's failure to meet required specifications.
How Widespread Is Corruption in Ukraine?
Ukraine inherited a substantial legacy of corruption when it gained independence from the Soviet Union in 1991. Despite considerable strides made by NABU and SAPO since their establishment in 2015, corruption remains endemic throughout the country.
Recent surveys reveal that eighty-seven percent of Ukrainians perceive corruption as a widespread phenomenon, with this perception more sharply felt in rural communities. However, only seven percent of respondents believe corruption has improved overall since last year.
Transparency International, the global organization monitoring corruption worldwide, assigned Ukraine a score of thirty-six out of one hundred in its most recent Corruption Perceptions Index, with lower scores reflecting higher rates of corruption. By comparison, the United Kingdom received a score of seventy in 2025, reflecting a steady decline from eighty-two over the past decade.
Andrii Borovyk, executive director at Transparency International Ukraine, noted that despite limited improvements - including a push for greater transparency in handling seized assets - reforms have been overshadowed by efforts to limit the independence of anti-corruption agencies. These efforts ultimately collapsed under substantial public and international pressure.
"Thanks to those protests, we were able to defend the independence of the anti-corruption bodies, and the resulting one-point increase in the Corruption Perceptions Index can be viewed as a positive sign," Borovyk stated. "This is the result of the work of the HACC, the NABU, and the SAPO—and the result of society's efforts in defending their independence."
Ukraine maintains a concrete reform plan available for implementation, according to Transparency International's 2025 assessment, but the country "did not demonstrate real progress or readiness to implement it." Battling corruption remains a key priority in Ukraine's reform efforts as the nation eyes membership in the European Union, which requires countries to shake off long-standing graft problems.
As Operation Midas continues to create political tremors throughout Ukraine, Energoatom CEO Pavlo Kovtonenko announced last week that the company has implemented numerous measures to prevent the recurrence of corruption schemes in the future. Anti-corruption investigators have regained momentum after a law that would have limited their independence was scrapped under public and foreign pressure last year, but experts agree Ukraine still has considerable distance to travel before fully ridding itself of systemic corruption.
