Former Ukrainian MP Ruslan Demchak faces serious allegations of money laundering and stock market manipulation following his detention in Germany on January 1, 2026. Ukrainian authorities, including the State Bureau of Investigation (SBI), confirmed the arrest amid an ongoing probe into over 20 million UAH in laundered funds.
The case stems from suspicions issued in August 2023, highlighting Ukraine’s push against financial crimes amid wartime scrutiny.
Background on Ruslan Demchak
Ruslan Demchak served as a People’s Deputy in Ukraine’s Verkhovna Rada during the 8th convocation, representing the Petro Poroshenko Bloc. He entered politics after a career in finance, owning Ukrainian Business Group, RD Bank, and related assets like insurance and healthcare firms.
Demchak’s business history includes past scrutiny; in 2012, Ukrainian tax authorities arrested him on money laundering charges during his parliamentary candidacy, which he claimed was politically motivated. His structures denied wrongdoing, but sources alleged involvement in “conversion centers” for cashing non-cash funds.
Recently, the National Bank of Ukraine closed RVS Bank—linked to Demchak—in 2025 amid insolvency and ties to his group. He also faces separate NABU charges for abuse of power, including illegal housing compensation of about 225,000 UAH while residing outside Kyiv.
Details of the Allegations
Ukrainian prosecutors notified Demchak in August 2023 of aiding stock market manipulation and laundering over 20 million UAH in criminal proceeds, potentially part of a larger 1 billion UAH scheme per some reports. The SBI alleges he legalized illicit gains through financial operations tied to his past enterprises.
Demchak was added to international wanted lists in October 2024 after a court preventive measure. German authorities detained him pursuant to this notice, focusing on money laundering from stock fraud.
Separate probes include NABU’s case on housing fraud, where the High Anti-Corruption Court convicted him, though appeals may pend. No direct German charges are confirmed; the arrest aids Ukrainian extradition.
Timeline of Events
- 2012: Arrested in Ukraine on money laundering during election bid; released after two months.
- 2015: RVS Bank founded from insolvent Omega Bank under his group.
- August 2023: Suspicion notice for stock manipulation and laundering 20M+ UAH.
- 2025: RVS Bank closed; housing compensation case ruled against him.
- October 2024: Declared internationally wanted.
- January 1, 2026: Detained in Germany.
This sequence underscores persistent financial probes spanning over a decade.
Official Statements and Reactions
The SBI press service confirmed the detention without naming Demchak initially, stating he was wanted for laundering crime proceeds. RBC-Ukraine sources identified him explicitly.
No public statement from Demchak post-arrest; past defenses rejected laundering claims, attributing actions to political rivals. In 2012, his bank insisted no illegal operations occurred.
Ukrainian officials eye simplified extradition from Germany, potentially taking three months. No German prosecutor comments released yet. Media like Ukrinform and TSN.ua covered the event neutrally, emphasizing international cooperation.
Legal Process and Extradition Outlook
Germany’s detention follows Interpol channels for the Ukrainian warrant. Extradition treaties between Ukraine and Germany support transfer for non-political crimes like money laundering.
Demchak could contest via German courts, but simplified procedures for EU-associated cases streamline returns. Upon extradition, he faces trial in Ukraine, possibly with asset freezes.
This case aligns with Ukraine’s anti-corruption drive, intensified post-2022 invasion, targeting ex-MPs in financial schemes.
Broader Implications for Financial Crime in Ukraine
Demchak’s arrest signals robust cross-border enforcement against money laundering, especially in stock and banking sectors. Ukraine’s SBI and NABU actively pursue fugitives abroad amid war-disrupted oversight.