Major corruption scandal engulfs top Zelensky allies
Ukraine’s energy and justice ministers have resigned following a major investigation into corruption in the country’s energy sector.
President Volodymyr Zelensky on Wednesday called for the dismissal of Energy Minister Svitlana Grynchuk and Justice Minister Herman Halushchenko.
Anti-corruption bodies on Monday accused several people of orchestrating an embezzlement scheme worth around $100 million (£76 million) in the energy sector, including from national nuclear operator Enerhoatom.
Some of those involved in the scandal were close colleagues or close friends of Zelensky.
The allegation is that Justice Minister Herman Halushchenko and other key ministers and officials received payments from contractors who built fortifications against Russian attacks on energy infrastructure.
Those allegedly involved include former Deputy Prime Minister Oleksiy Chernyshov and businessman Timur Mindich, co-owner of Zelensky’s former TV studio Kvartal95. He has since reportedly fled the country.
While Halushchenko said he would defend himself against the accusations, Grynchuk said on social media: “There was no violation of the law within the scope of my professional activities.”
Ukraine’s National Anti-Corruption Bureau (Nabu) and the Specialized Anti-Corruption Prosecutor’s Office (Sap) said the investigation, which took 15 months in the making and included 1,000 hours of audio recordings, revealed the involvement of numerous members of the Ukrainian government.
According to Nabu, those involved systematically collected kickbacks from Enerhoatom contractors ranging from 10% to 15% of contract values.
Anti-corruption agencies also said large sums had been laundered and released photos of bags full of cash. Nabu said the funds were then transferred outside Ukraine, including to Russia.
Prosecutors alleged that proceeds from the scheme were laundered through an office in Kiev linked to the family of former Ukrainian lawmaker and current Russian senator Andriy Derkach.
Nabu is releasing new pieces of his investigation and wiretaps every day, and promised more to come on Tuesday.
The scandal comes amid increasing Russian attacks on Ukrainian energy facilities, including substations that supply electricity to nuclear power plants.
It will also shed light on corruption in Ukraine, which remains rampant despite Nabu and Sap’s work in the 10 years since they were established.
In July, nationwide protests broke out over changes restricting the independence of Nabu and Sap. Ukrainians feared the country could lose its coveted EU candidate country status, which was granted to it only if it mounts a credible fight against corruption.
Kiev’s European partners also expressed serious concern about the decision, while ambassadors of the G7 group countries stated that they wanted to discuss the issue with the Ukrainian administration.
The reaction was the most violent to hit the Ukrainian government since the start of Russia’s full-scale invasion in 2022, and was only quelled by Zelensky’s decision to restore the freedom of two anti-corruption bodies.
But for some, the crisis has called into question Zelensky’s commitment to anti-corruption reforms. The latest scandal threatens to raise even more awkward questions for the Ukrainian president.
