Ukrainian President Volodymyr Zelenskyy announced a major shake-up of state-owned energy companies on Saturday amid the largest corruption scandal to rock the country since the start of Russia’s invasion in 2022.
Around $100 million (€86 million) was embezzled from energy companies, according to investigators, sparking widespread public outcry.
“We are beginning the overhaul of key state-owned enterprises in the energy sector,” Zelenskyy said on X. “Alongside a full audit of their financial activities, the management of these companies is to be renewed.”
What do we know about Ukraine’s energy corruption scandal?
Allegations that millions of dollars had been embezzled came to light on Monday after the National Anti-Corruption Bureau of Ukraine (NABU) published the findings of a 15-month investigation.
NABU alleged that several individuals connected to the energy sector had forced contractors of the state-owned nuclear energy company Energoatom to pay kickbacks of 10% to 15% on contracts to avoid payment delays or losing their contractor status.
Some of these contracts related to the construction of protective structures to shield Ukraine’s energy infrastructure from Russian strikes.
NABU said these suspects had created a parallel power structure inside the state nuclear operator, which supplies half of Ukraine’s energy.
Ukrainian Energy Minister Svitlana Grynchuk and Justice Minister Herman Halushchenko both stepped down over the scandal but denied any involvement in the scheme.
The scandal also prompted Zelenskyy to sanction a close personal associate, businessman Timur Mindich, after investigators implicated him as the mastermind behind the scheme. Mindich is believed to have left Ukraine.
New appointments at Energoatom, Ukrhydroenergo and Naftogaz
Zelenskyy on Saturday called for a new supervisory board to be appointed at Energoatom “within a week” in order to enable “the complete overhaul of the company’s management.”
He also called for the quick appointment of a new head of the hydroelectric operator Ukrhydroenergo and for preparations to begin for the election of a new board at gas provider Naftogaz.
“I have also instructed government officials to maintain constant and meaningful communication with law enforcement and anti-corruption bodies,” he said. “Any scheme uncovered in these companies must receive a swift and just response.”
Edited by: Sean Sinico
