An anti-corruption investigation reaching from Ukraine's Presidential Office into the management of state-owned Sense Bank has raised questions far beyond the alleged laundering of UAH 150 million. At stake are the governance of nationalised assets, the independence of Ukraine's anti-corruption institutions, a planned bank privatisation, an international arbitration worth more than $1 billion and Kyiv's credibility as it moves deeper into EU accession negotiations.
A week after Ukrainian anti-corruption investigators unveiled an operation carrying the improbable codename “Forrest Gump”, the affair has developed into one of the most consequential governance scandals to hit wartime Ukraine.
At its center is a deceptively simple question: Where did UAH 150 million — approximately $3.4 million — used to secure the release on bail of former Justice and Energy Minister Herman Halushchenko, a centerpiece of the biggest corruption scandal of Zelensky government, actually come from?
The answer alleged by Ukraine's National Anti-Corruption Bureau, NABU, and Specialised Anti-Corruption Prosecutor's Office, SAPO, is extraordinary.
Investigators say criminal proceeds under the supervision and manual management of deputy head of the Office of the president of Ukraine Iryna Mudra were converted into apparently legitimate funds through a series of companies and bank accounts. The source of the money is linked with the main suspect of another corruption scandal Timur Mindich, a close ally of president Zelensky, and the goal was to post bail for a suspect in the Operation Midas investigation into alleged corruption surrounding the state nuclear company Energoatom.
NABU's official account says members of a criminal organisation, acting with representatives and officials of a state-owned bank, arranged the laundering of UAH 150 million during June 2026. The cash was allegedly introduced into the legitimate financial system through accounts belonging to shell companies before being used for bail.
The most revealing evidence released by NABU is not just a bank transfer but Mudra’s own confessions, which give wider picture. In one recorded exchange, a female voice attributed to her says: “Corruption should be systematised and controlled… There is no need to fight it.” A male interlocutor adds: “And lead it.” This is said by one of the highest Ukrainian official in charge of judicial reform. Yet her own words are arguably more disturbing, presenting corruption not as an abuse to be eliminated but as a system to be organised and kept under political management.
Other recordings portray Mudra discussing state owned Sense Bank, where this money-loundering operation took place, as an asset to be under direct political control and used for enrichment. She recounts a proposed arrangement under which political figures politicians from Zelensky party Servant of the People would refrain from attacking the bank while “Sense Bank has to pay them”, and quotes an instruction she received from above to “take over the bank” because it contains “serious flows”. She then describes its managers as compliant figures who would carry money wherever a senior Presidential Office official instructed them, adding that they had “crawled” to her “like kittens” asking to be taken under protection.
NABU’s published recording also appear to show Mudra discussing protection from the institutions supposed to investigate such conduct. She asks how to mobilize votes for “our” candidates to NABU’s Public Oversight Council and describes SAP chief Oleksandr Klymenko as “not one of ours,” warning that if he secured a second term, “we’ll all be fucked.” Taken together, these phrases suggest something broader than participation in a single suspicious transaction: an alleged attempt to control a state-owned bank while influencing the bodies capable of investigating that control. If authenticated and confirmed in context, they would provide unusually direct evidence of political capture and consciousness of wrongdoing. Mudra denies criminal conduct and says the excerpts were released selectively and without their full context.
Revelations are shocking in many dimension and will have influence for years to come. One of the most striking revelation is usage of the state-owned Sense Bank as systemic money-laundering machine.
Sense Bank carries unusual political and legal baggage. Until 2022 it was known as Alfa-Bank Ukraine and was owned through corporate structures associated with ABH Holdings. Among the beneficial shareholders were Russian businessmen including Mikhail Fridman and Petr Aven.
Ukraine subsequently imposed sanctions and, in July 2023, the government took Sense Bank into state ownership. Ukraine's Ministry of Finance says the measure was intended to maintain financial stability and protect depositors after sanctions were imposed on significant shareholders. The state today owns 100% of the bank.
It was therefore no ordinary commercial bank allegedly being exploited. It was an asset that Ukraine had taken into public ownership during wartime, in considerable part because of national-security concerns surrounding its previous ownership.
The source material examined by EU Reporter describes this as a crucial feature of the scandal: after nationalisation, the allegation is not simply that corrupt actors conducted transactions through Sense Bank, but that political influence was progressively established over the institution's governance.
That allegation remains contested and has not been established by a court. But documents released by NABU and widely reported by the Kyiv Independent and other leading Ukrainian media raise questions that are difficult for the Ukrainian authorities to ignore. The Kyiv Independent reported on 22 August that internal Nomination Committee records showed attempts to shape Sense Bank's supervisory board following nationalisation. The paper reported that Iryna Mudra, then deputy head of the Office of the President and chair of the committee involved in selecting supervisory-board members, strongly promoted Mykola Hladyshchenko for a place on the board despite objections concerning competence, potential conflicts of interest and previous employment. Hladyshchenko subsequently became chairman of the supervisory board.
The investigation also cited earlier leaked conversations in which prospective board candidates were allegedly described as “our guys”. Six people reportedly discussed in that context were subsequently appointed. EU Reporter has not independently authenticated those recordings or the leaked committee minutes, so their contents must remain attributed to the publications that obtained them.
However, now the anticorruption agencies established with support and guidance of the EU provide their findings suggesting that the bank was deliberately captured for criminal purposes. NABU says that by early June 2026 the alleged organisers had obtained de facto control of Sense Bank, enabling them to use accounts of controlled businesses in the laundering scheme. That allegation has now triggered action at the highest levels of financial regulation.
The alleged mechanics of the operation read more like a crime thriller than a banking-compliance investigation. According to the investigative material compiled in the source document and subsequent Ukrainian reporting, cash was allegedly concentrated through businesses associated with former MP and developer Maksym Mykytas before being exchanged or routed through companies capable of putting apparently legitimate non-cash funds into the banking system.
The source describes alleged deliveries of cash in bags and boxes, routing through companies including Metrobud and other entities, and discussions about how transactions could pass financial-monitoring controls.
Ukraine's anti-money-laundering regime establishes a UAH 400,000 statutory threshold for certain financial-monitoring obligations, alongside wider risk-based requirements. It would be inaccurate to suggest that every payment above UAH 400,000 is automatically prohibited; rather, banks are expected to identify, scrutinise and where necessary report transactions according to statutory and risk criteria.
The significance of the NABU allegation is therefore not simply the size of the payment. Investigators allege that people involved in the transaction were actively discussing how to overcome or circumvent compliance barriers. Published recordings attributed to members of the alleged group include discussion of a Sense Bank compliance official who could prevent the transaction. Mudra in one recording says that she received demand “from above” to fire a bank official who refuse to clear transaction. The scheme released by NABU paint a shocking picture: to make the transfer the bank's automated monitoring arrangements were temporarily taken out of operation during the transaction.
Those are NABU allegations presented to the court. But the Ukrainian government has already treated them seriously enough to take immediate action. This confirms that NABU accusations are well grounded.
On 19 August, the Cabinet suspended supervisory-board chairman Mykola Hladyshchenko for six months and initiated the suspension of management-board chairman Oleksii Stupak. The Finance Ministry explicitly said that its intervention was designed to address risks including the possible use of Sense Bank for money laundering and inadequate oversight of AML procedures.
The following day, National Bank of Ukraine Governor Andriy Pyshnyi went further. The NBU concluded that Hladyshchenko no longer satisfied the statutory independence requirements for membership of the supervisory board and opened proceedings to examine the collective suitability of the entire board. On 21 August, the government terminated Hladyshchenko's powers altogether. This regulatory reaction matters because it turns the episode from an allegation concerning individual criminal behaviour into a potential failure of corporate governance and banking supervision.
Sense Bank itself has said it is cooperating with the authorities. Following the NABU searches, the bank said it wanted the circumstances established “fully and objectively” and was providing investigators with the information required under legal procedures.
But the key question is different. There have been already multiple accusations of usage of nationalised Sense bank for allegedly corrupt or shadow schemes. NABU revelation did not come from nowhere and were not a separate incidental case. In previous NABU and journalistic investigations shocking facts of how bank has been used were presented. How was it possible that in time of war after nationalisation of one of the biggest banks it could turn into money-laundering machine?
The highest-profile suspect is Iryna Mudra. Mudra served as deputy head of the Office of the President and held responsibility for major legal and judicial-policy issues, including international mechanisms concerning Russian aggression and frozen Russian assets. President Volodymyr Zelenskyy dismissed her on 19 August. Presidential Decree No. 734/2026 confirms the dismissal but does not give a reason. NABU and SAPO served Mudra with a notice of suspicion. On 25 August, Ukraine's High Anti-Corruption Court ordered her held in custody for 60 days while allowing release if UAH 20 million bail is posted. Prosecutors had requested considerably higher bail.
Mudra denies criminal wrongdoing. She has argued that the published recordings have been presented selectively and out of context. Through her lawyers, she has said that she is cooperating with investigators and is prepared to answer their questions through the proper legal process. The underlying source document expressly records those objections and cautions concerning the provenance and quality of some recordings.
On 24 August President Zelenskyy said the anti-corruption bodies had “no questions” for him regarding the investigation.
There is another legal dimension. Former shareholder ABH Holdings commenced ICSID arbitration against Ukraine after the 2023 nationalisation, seeking more than $1 billion and alleging unlawful expropriation. UNCTAD records the dispute as ABH v Ukraine, ICSID Case No. ARB/24/1, concerning the former ownership of Alfa-Bank/Sense Bank. A separate proceeding, EMIS v Ukraine, also concerns alleged unlawful expropriation of Sense Bank.
The government's 2023 decision was taken in the context of sanctions and financial-stability considerations. Whether it complied with the relevant investment treaties is a matter for international tribunals, not for a criminal investigation conducted three years later. Nevertheless, evidence about how the asset was governed after nationalisation could become relevant contextual material in those proceedings.
ABH's case alleges that the taking of Sense Bank was unlawful. Ukraine will defend the nationalisation on its own legal and national-security grounds. A subsequent allegation that politically connected actors exploited the nationalised institution does not answer that legal dispute, but it could make the factual history of the asset considerably more uncomfortable for Kyiv. The source analysis supplied to EU Reporter correctly identifies this potential intersection. Forrest Gump can raise a question about bad faith in the original nationalisation and the consequences might go much further than a bail for one allegedly corrupt official.
And the cherry on the top: Mudra was also one of the officials responsible for formulating and publicly defending Ukraine’s position against ABH Holdings, the former owner of Sense Bank, in its more than $1 billion ICSID claim over the bank’s nationalisation; she later chaired Ukraine’s delegation in other major international proceedings. This creates a particularly damaging contradiction: an official who defended the takeover as a lawful national-security and financial-stability measure is now accused of helping place the same bank under political control and use it to launder criminal proceeds. The allegations do not by themselves prove that the 2023 nationalisation was unlawful, but they seriously undermine the factual and moral credibility of Ukraine’s case and offer ABH a powerful argument that the bank was not transferred into genuinely independent state management, but into a system vulnerable to political capture.
Forrest Gump is not an isolated investigation. Its roots reach into Operation Midas, NABU's investigation into alleged large-scale corruption at state nuclear operator Energoatom. NABU says Midas uncovered a criminal structure involved in substantial corruption and subsequent money laundering. Later investigative developments have continued into 2026.
The Forest Gump allegations concern money ultimately used as bail for an individual implicated in that wider investigation. This changes the character of the alleged conduct. If prosecutors prove their case, it would mean that money generated through criminal activity was not merely hidden or spent. It was allegedly recycled back into the criminal-justice system itself to secure the liberty of another suspect.
And here we come to the point vitally important for Brussels.
Ukraine formally opened negotiations on the EU's Fundamentals cluster on 15 June 2026. That cluster includes the judiciary, fundamental rights, justice and security, public procurement and financial control. Crucially, it is the first cluster opened and the last to close, and the European Commission has made clear that progress under it determines the overall pace of accession negotiations.
Ukraine is simultaneously receiving extraordinary financial support from the European Union. The Ukraine Facility provides up to €50 billion between 2024 and 2027, and support is tied to democratic mechanisms, the rule of law, sound financial management, anti-corruption safeguards and reform commitments.
The issue for Brussels is therefore not whether corruption exists in Ukraine. No serious accession process operates on the assumption that candidate countries are free of corruption.
The more important test is whether institutions can discover it, investigate it, prosecute it and correct the governance failures that allowed it without political obstruction. Viewed from that perspective, Forrest Gump presents two competing narratives. The negative interpretation is obvious: people occupying some of the highest positions in the Ukrainian state are alleged to have manipulated a nationalised bank and circumvented controls to launder criminal proceeds.
The more positive institutional interpretation is that Ukraine's own anti-corruption agencies investigated them, published evidence, served suspicion notices, triggered removals at a state bank and brought one of the country's most senior former presidential officials before an independent anti-corruption court.
Which narrative ultimately prevails will depend heavily on what happens next.
O próximo Passeio Sénior, integrado no projeto “Vida com Ritmo – Programa Mais Vida à Vida”, convida a população sénior do concelho de Olhão a descobrir a história, a cultura e a beleza natural de Portimão e Alvor.
Ao longo de um dia de convívio e descoberta, os participantes terão oportunidade de visitar o Museu de Portimão, instalado nas antigas instalações da Fábrica de Conservas Feu, e conhecer a exposição permanente “Portimão, Território e Identidade”, que dá a conhecer a relação da cidade com o rio Arade, o mar e a indústria conserveira.
Durante a tarde, a visita prossegue pela Ria de Alvor, onde a paisagem natural se cruza com a memória e a tradição piscatória. Entre os pontos de interesse estão a antiga Lota e o histórico Edifício de Socorro a Náufragos, que alberga um barco salva-vidas dos anos 20 do século passado, testemunho da história marítima daquela região.
Dirigido a maiores de 60 anos residentes no concelho de Olhão, o Passeio Sénior realiza-se nas seguintes datas:
– Setembro – 15, 18, 22, 25 e 29;
– Outubro – 2, 6, 9, 13, 16, 20 e 23.
Inscrições:
– 31 de agosto – Junta de Freguesia de Moncarapacho, sede em Moncarapacho;
– 1 de setembro – Junta de Freguesia de Olhão, sala da sede;
– 2 de setembro – Junta de Freguesia de Pechão, sala da sede;
– 3 de setembro – Junta de Freguesia de Quelfes, sala da Patinha e sala da sede;
– 4 de setembro – Junta de Freguesia de Fuseta, Biblioteca na Fuseta.
Uma oportunidade para sair, conviver, conhecer novos lugares e descobrir o património que nos rodeia.
Brussels (enr) – Local and regional leaders raised concerns that the next multiannual EU budget risks undermining investment in affordable homes needed to alleviate Europe’s deepening housing crisis.
“Europe’s housing challenge is not simply about building more housing units,” said Kata Tüttő, President of the European Committee of the Regions (CoR), an EU advisory body home to democratically elected regional and local representatives from all 27 Member States.
At a gathering in Brussels on Thursday, they demanded the EU “move from political ambition to concrete investment and delivery,” arguing that failing to invest now will only put affordable housing further out of reach for millions of Europeans.
As negotiations over the EU’s next long-term financial framework gather pace, cities and regions fear that affordable housing could become a casualty of competing spending priorities as several EU member states seek to cut the European Commission’s proposed €2 trillion budget for 2028-2034.
Tüttő called on the European Investment Bank (EIB), the EU’s lending arm, to “mobilise the scale of investment” that cities and regions need to “make communities liveable” by providing essential infrastructure. She cited public transport, as well as energy and water infrastructure, as key examples.
Italian MEP Irene Tinagli, Chair of the European Parliament’s Special Committee on the Housing Crisis (HOUS), said addressing the housing crisis “requires investment, better coordination across all levels of government and a shared commitment from European institutions, Member States, regions and cities”.
The CoR and EIB on Thursday agreed on closer cooperation in key areas including social infrastructure, housing, and energy. The European Investment Bank’s president, Nadia Calviño, said “investing into resilient cities and regions, into cohesion and housing” was a strategic priority.
According to EIB figures, the world’s largest multilateral development bank provided a record €5 billion in financing for housing projects across Europe in 2025. The EIB is targeting an increase to €6 billion this year, Calviño confirmed.
The investments are a contribution to the European Commission’s Affordable Housing Plan, which was launched in December and aims to boost housing supply, mobilise public and private investment, and support Member States and regions in expanding social and affordable housing.
According to the Commission’s estimates, however, the EU needs to build 2 million homes each year to meet current demand, which amounts to an investment of approximately €153 billion per year.
This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr.
Brussels (enr) – The European Union’s migration commissioner has renewed his call for Germany to gradually end controls at its internal borders, pointing to falling numbers of irregular arrivals and the bloc’s new asylum rules.
It was now time to gradually abolish internal border controls, Magnus Brunner told members of the European Newsroom (enr) network in Brussels.
The Austrian commissioner said the EU’s external borders were better protected and that irregular crossings had fallen sharply. Frontex recorded about one-third fewer irregular crossings at the EU’s external borders in the first half of 2026 than in the same period last year.
The EU’s new Pact on Migration and Asylum also took effect on June 12. Brunner said member states had begun implementing the rules and that the bloc was already seeing progress.
He welcomed steps by individual countries to ease controls. Checks on the border between Germany and Luxembourg on the Trier motorway have been lifted, he said. He also cited the suspension of controls between Austria and Slovenia.
Germany has had checks at its land borders since September 2024. Former Interior Minister Nancy Faeser ordered them, and her successor, Alexander Dobrindt, intensified them in May 2025. Dobrindt has repeatedly extended the measures, which are currently due to remain in place until September.
Brunner also defended the EU’s new Entry/Exit System, known as EES. The digital system records the entry and departure of travellers from outside the EU, Iceland, Liechtenstein, Norway and Switzerland.
He acknowledged that the system had caused problems at some airports, including in Greece and Portugal, but said: “The system itself works very, very well.”
The system has faced criticism over long queues. The Airports Council International Europe has reported waiting times of up to five hours and missed connecting flights.
Brunner said professional truck drivers from the Western Balkans faced a particular problem because they can currently stay in the EU for no more than 90 days in any 180-day period. He proposed that EU member states and Western Balkan countries negotiate long-term visas on a bilateral basis.
Hanoi (dpa) – Vietnam and the European Union on Thursday upgraded ties to a comprehensive strategic partnership, Vietnam’s highest diplomatic tier, amid a tumultuous period for global trade.
In a joint statement, Vietnam and EU stressed “the importance of a partnership based on common interests and shared values of peace, security, and prosperity in a rules-based international order, based on international law.”
Though US tariffs were not explicitly mentioned, at a press briefing held after meeting Vietnamese President Luong Cuong, European Council President António Costa said: “At a moment when the international rules-based order is under threat from multiple sides, we need to stand side-by-side as reliable and predictable partners.”
“Vietnam considers the EU one of its most important partners in the world and wishes to continue promoting and deepening its relationship with the EU,” Cuong said.
Cuong labelled the move a “historic milestone,” coming 35 years after Vietnam and the EU established diplomatic relations. The EU-Vietnam free trade agreement, signed in 2020, has helped drive a 40 percent increase in bilateral trade.
Vietnam is one of the EU’s largest trading partners in South-East Asia, while the EU is Vietnam’s fourth-largest trading partner. In the first 10 months of 2025, two-way trade reached nearly 61 billion Dollar (51 billion Euro), up 8.4 percent year on year.
Vietnam and the EU on Thursday also underscored the need to strengthen cooperation on peace, defence and security, and voiced support for multilateralism and respect for international law, including the UN Charter. (29 January)
The European Union’s vision to create a seamless, sustainable and high-quality multimodal transport network across Europe by 2050 was recently thwarted – by an EU watchdog who warned that delays of major projects are putting key 2030 and 2040 milestones at risk.
From the Lyon-Turin rail link to the Canal Seine-Nord waterway, an EU goal to complete a group of cross-border links by 2030 “will not be met”, according to a January report by the European Court of Auditors (ECA).
“Three decades after most of them were designed, we are still a long way from cutting the ribbon on these projects, and a long way from achieving the intended improvements in passenger and freight flows across Europe,” said the ECA member Annemie Turtelboom.
The ECA audited eight projects forming the backbone of EU plans to boost road, rail, water, and air transport across the 27-nation bloc in a bid to spur trade and economic growth.
The Trans-European Transport Network (TEN-T) is the backbone of Europe’s transport network and includes numerous large-scale transnational projects that are essential to improving connectivity across Europe.
In 2013, EU member states agreed to complete the TEN-T core network by 2030, but the Court of Auditors, updating its view from five years ago, considered that “the outlook in 2025 is worse than it was in 2020, and is very far from what was initially envisaged”.
In 2020, EU auditors reported that the eight megaprojects examined had experienced an overall 47 percent increase in actual costs (adjusted for inflation) compared with the original estimates.
Touching 13 countries including Belgium, Denmark, Germany, Estonia, France and Italy – the projects have received 15.3 billion Euro in EU funding and accumulated on average a 17-year delay, the auditors found.
According to the ECA report, the delays were down to a series of challenges, such as unexpected technical issues as well as the Covid-19 pandemic and Russia’s war on Ukraine.
According to the new report, costs have ballooned further than expected.
Not considering inflation, the overall price tag for the projects analysed was up 82 percent on the original estimates, the report said.
The most recent calculations for the projects are now almost twice the original levels, with the sharp rise attributed to two rail links – the Rail Baltica linking Tallinn and Warsaw via Riga and Kaunas, where costs have risen by 291 percent, and the link between Lyon in southern France and Turin in northern Italy, where the rise has been of 127 percent.
Estonia, Latvia and Lithuania – which broke free from the Soviet Union when it crumbled in 1990-1991 and went on to join both the EU and NATO in 2004 – all have Soviet-era wide gauge railways.
With a total population of just six million people, the Baltic trio inked a deal in 2017 to build a high-speed rail link, aimed at creating fresh opportunities for the region in terms of trade and logistics.
In addition to rising costs, the construction of the Lyon-Turn railway has, over the years, also faced opposition from environmental groups critical of the Lyon-Turin tunnel project. Supporters said it will greatly ease freight road traffic but opponents – who staged, for example, a protest close to the village of Saint Remy-de-Maurienne in southeastern France in 2017 – said the ecological damage risks being devastating and that springs had already started to dry up due to the works.
The Brenner Base Tunnel connecting Innsbruck (Austria) and northern Italy – which aims primarily to shift freight from road to rail – will now cost 40 percent more than originally estimated and is currently estimated to open in 2032 at the earliest. The original opening date was 2016, and the ECA had already moved its estimation to 2028 in its report five years ago.
Costs for the Fehmarn Belt road/rail link between Denmark and Germany will be 52 percent higher, with opening planned for 2029, 11 years later than originally planned, with the possibility of further delay until 2031.
The Seine-Nord Europe Canal, a high-capacity waterway intended to facilitate the transport of goods between the Benelux countries and the Paris region also suffered from massive overruns, up 225 percent.
“The Basque Y railway line, which was supposed to be operational by 2010 according to its initial timeline and by 2023 according to the revised plan from 2020, is now expected to be ready by 2030 at the very earliest,” the report said, although the auditors consider 2035 to be more realistic.
According to data from the European Commission, Spain was one of the countries investing the most in high-speed rail, with an average of around 1.5 billion Euro per year between 2018 and 2022. However, the aftermath of three fatal train crashes earlier this month exposed the inadequate maintenance of existing railway networks.
Despite the critical issues that have emerged across the eight megaprojects, according to the report, the European Commission has never used the legal instruments at its disposal to obtain clarification on the delays from the capitals.
Moving forward, the auditors expressed the hope that national transport plans will in future be coordinated with priorities at European level. Member states are now obliged to do so, but this will show up only in new megaprojects.
On a more positive note, in the case of two projects, the A1 motorway in Romania and the E59 railway line in Poland, the latest cost estimates are actually lower than the original ones.
According to the ECA report, costs for the E59 line were down 18 percent and auditors did not provide an estimated year of opening.
Poland’s TEN-T network already covers the seaports of Gdańsk, Gdynia, Szczecin and Świnoujście, as well as airports including Warsaw, Kraków, Gdańsk and Katowice, which serve as key multimodal nodes. The E59 railway is part of the Baltic Sea – Adriatic Sea corridor.
According to the ECA report, costs for the A1 motorway in Romania are 11 percent lower than initially estimated.
The A1 motorway in Romania is a key component of the Rhine-Danube Corridor and, within Romania, provides a direct connection between the capital city Bucharest and the Hungarian border at the Nădlac crossing point.
Prospects for the completion of the A1 motorway have thus improved, and the project could be commissioned ahead of the 2030 deadline.
Editorial note: The location of the Brenner Base Tunnel has been updated for clarification.
This article is an ENR Key Story. The content is based on information published by ENR participating agencies.
Brussels (dpa) – The European Commission has opened a probe into the US tech company X over its artificial intelligence chatbot Grok after it created sexualised images of women and children.
“Non-consensual sexual deepfakes of women and children are a violent, unacceptable form of degradation,” EU Commission Vice-President Henna Virkkunen said on Monday.
The investigation is to probe whether X has complied with its obligations under European Union law, including the duty to “diligently assess and mitigate systemic risks,” the Commission, which acts as the EU’s digital watchdog, wrote in a statement.
“This includes risks related to the dissemination of illegal content in the EU, such as manipulated sexually explicit images, including content that may amount to child sexual abuse material,” it said. “These risks seem to have materialised, exposing citizens in the EU to serious harm.”
Elon Musk‘s social media platform has come under heavy criticism in recent weeks after Grok allowed users to digitally replace women’s clothing with bikinis and, in some cases, create sexualized depictions of minors.
After prolonged international outrage, X introduced some restrictions in mid-January.
These include preventing Grok “from allowing the editing of images of real people in revealing clothing such as bikinis” and restricting the image creation feature of the AI chatbot to paid subscribers, X said in a statement.
The Commission stressed that the opening of a probe does not prejudge its outcome. (26 January)
Davos, Switzerland (dpa) – German Chancellor Friedrich Merz has blasted the European Parliament for referring the contested EU free trade deal with four countries from the South American Mercosur bloc to court.
“I deeply regret that the European Parliament has put another obstacle in our way,” Merz told political and business leaders at the World Economic Forum in Davos on Thursday. “But rest assured, we will not be stopped. The Mercosur deal is fair and balanced. There is no alternative to it if we want to have higher growth in Europe.”
Merz said he expects the trade deal to be implemented “provisionally” despite the Parliament’s challenge.
The European Parliament voted on Wednesday to have the Mercosur trade deal, which was signed last week following decades of painstaking negotiations, reviewed by the European Court of Justice (ECJ).
Waiting for the court’s opinion could significantly delay the ratification process for the agreement with Brazil, Argentina, Paraguay and Uruguay. It is unclear how long it will take for the judges at the ECJ in Luxembourg to submit their assessment, but previous assessments took between 16 and 26 months.
The agreement, which aims to remove trade barriers and customs duties and boost the exchange of goods and services, would create one of the largest free trade zones in the world. (22 January)
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