Zelenskyy regime in Ukraine embroiled in major energy corruption scandal
What's the story
Ukraine is currently facing a massive corruption scandal in its energy sector, as Russia's invasion nears its fourth winter. The Ukrainian Anti-Corruption Bureau (NABU) has launched "Operation Midas," raiding around 70 locations and exposing a "high-level criminal organization" that embezzled $100 million. The operation led to several arrests, including an official from state nuclear operator Energoatom. A close associate of President Volodymyr Zelenskyy and co-owner of Kvartal 95, the Ukrainian production company Zelenskyy co-founded in 2003, is also implicated.
Scandal details
Allegations against Zelensky's close associate
Timur Mindich is a film producer and also the former business partner of Ukrainian oligarch Ihor Kolomoisky, and is accused of orchestrating the scheme where he allegedly "controlled" money laundering operations and influenced senior government officials. However, he fled the country before the charges were made public. The NABU has released wiretapped conversations as part of its investigation. The suspects are said to have created a parallel power structure within Energoatom, forcing contractors to pay kickbacks of 10-15% on contracts.
Presidential action
Zelensky's response to corruption allegations
Amid the scandal, Zelenskyy has sanctioned Mindich and demanded the resignation of Energy Minister German Galushchenko and his former deputy, Svitlana Grynchuk. Galushchenko is accused of receiving "personal benefits" from the scheme, while Grynchuk, although not directly implicated, is seen as a close associate of Galushchenko. The scandal has drawn criticism from European leaders who urged Zelenskyy to take "energetic steps" against corruption.
Corruption history
Ukraine's ongoing battle with corruption
Ukraine has long struggled with corruption since the Soviet Union's collapse. In September 2023, Defense Minister Oleksiy Reznikov resigned over overpriced military supplies. This April, several defense officials were arrested for supplying faulty shells to the army. Despite these efforts, relations between anti-corruption agencies and the presidency remain tense. Transparency International ranked Ukraine 105th out of 180 countries in its 2024 corruption index, an improvement from a decade ago, when it was placed 142nd.