Ukrainian President Volodymyr Zelensky has announced plans to "overhaul" state-owned energy companies following a corruption scandal involving an estimated $100 million.
Investigation Details
On Monday, the National Anti-Corruption Bureau of Ukraine (Nabu) and the Specialised Anti-Corruption Prosecutor's Office (Sap) confirmed a 15-month investigation revealed alleged embezzlement totaling approximately $100 million (£76 million). The investigation implicated several members of the Ukrainian government.
Among those identified in connection with the scandal are Justice Minister Herman Halushchenko, former Deputy Prime Minister Oleksiy Chernyshov, and businessman Timur Mindich. Mindich is a co-owner of Zelensky's former television studio, Kvartal95. Some individuals implicated reportedly have close ties to President Zelensky. Two ministers have resigned over the scheme, and a former business partner of Zelensky was sanctioned recently.
Proposed Reforms
President Zelensky stated that Energoatom, the state nuclear company, would receive a new supervisory board within a week. He also indicated that the management of involved companies would be renewed, alongside a full audit of their financial activities. Zelensky further instructed government officials to maintain communication with law enforcement and anti-corruption bodies.
Calls have been made for the prompt appointment of a new head for Ukrhydroenergo, a hydropower generating company, and for reforms within the oil and gas giant Naftogaz and the nation's Gas Transmission System Operator.
Context and Previous Scrutiny
The scandal unfolds amidst escalating Russian attacks targeting Ukrainian energy facilities, including substations that supply electricity to nuclear power plants.
Zelensky has reiterated his commitment to full cooperation with anti-corruption investigations, stating that "full transparency and integrity in the energy sector remain an absolute priority." However, the developments have drawn renewed attention to Ukraine's anti-corruption efforts. In July, President Zelensky faced criticism after signing a law that restricted the independence of Nabu and Sap. Although the law was subsequently reversed, the incident prompted concerns from European allies, including France and Germany, and led to ambassadors from the G7 group of nations expressing a desire for discussions with Ukrainian leadership.