Mohan Sinha
18 Nov 2025, 10:59 GMT+10
KYIV, Ukraine: As Russia's renewed strikes on Ukraine's energy system trigger rolling blackouts ahead of winter, a major embezzlement and kickbacks scandal at the state-owned nuclear power company has put senior officials under intense scrutiny.
The case is quickly becoming one of the most serious political crises since Russia's full-scale invasion, with media reports linking the scheme to a close associate of President Volodymyr Zelenskyy.
Facing public anger, Zelenskyy called for the removal of his justice and energy ministers. Both later submitted their resignations, the prime minister said.
Ukraine's anti-corruption agencies — the same ones Zelenskyy tried to weaken earlier this year — announced the results of a 15-month investigation based on 1,000 hours of wiretaps. Five people were detained, and seven more were tied to about US$100 million in kickbacks in the energy sector.
The scandal comes as Ukrainian officials plead with Europe for help to deal with worsening energy shortages, while Russian attacks target critical infrastructure and natural gas production. On the battlefield, outnumbered Ukrainian forces continue to fall back under heavy fire.
Corruption has long been a challenge in Ukraine, and Zelenskyy was elected on promises to tackle it. Earlier scandals forced the removal of Defense Minister Oleksii Reznikov in 2023. But this latest case lands at a particularly damaging moment.
"Internally, this scandal will weaken unity, and externally, it gives our enemies arguments to cut aid," said Oleksandr Merezhko, a lawmaker from Zelenskyy's party. "While Russia destroys our power grid, someone at the top was stealing money during the war."
The key question now is how far the scheme has reached.
The National Anti-Corruption Bureau, NABU, did not name suspects but said they included a businessman, a former adviser to the energy minister, an Energoatom security official, and others involved in laundering money. NABU called the operation "Midas." Eight more people were accused of bribery, abuse of office, and holding unexplained assets.
NABU said it carried out more than 70 raids. Zelenskyy welcomed the probe and urged full cooperation. Energoatom said its work was not disrupted.
NABU also released excerpts of wiretaps in which the group used code names and secret language to pressure Energoatom contractors to pay 10 to 15 percent kickbacks in exchange for avoiding internal barriers. The network exploited wartime rules that prevent contractors from suing essential-service companies like Energoatom, which earns about $4.7 billion a year. Four people allegedly handled the laundering from a Kyiv office.
The tapes — which the Associated Press could not verify — claim that about $1.2 million went to a former deputy prime minister, nicknamed "Che Guevara."
Amid the fallout, Zelenskyy demanded the dismissal of Justice Minister Herman Halushchenko, a former energy minister, and current Energy Minister Svitlana Grynchuk. Prime Minister Yuliia Svyrydenko confirmed their resignations and said the cabinet proposed sanctions against Timur Mindich, a close associate of Zelenskyy, and businessman Alexander Tsukerman. Zelenskyy said the issue now comes down to "trust."
This has raised questions about what senior officials knew, especially with wartime powers concentrated in the president's office. Zelenskyy had attempted to limit the powers of anti-corruption agencies last summer but backed down after public protests.
Months later, the watchdogs presented their findings.
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