Ukrainian President Volodymyr Zelensky on Saturday announced major changes to state-owned energy companies amid the biggest corruption scandal to rock the country since the start of Russia’s invasion in 2022.
According to investigators, approximately $100 million (€86 million) was embezzled from energy companies, sparking widespread public outrage.
“We are starting to overhaul key state-owned enterprises in the energy sector,” Zelensky said on the issue. “The management of these companies has to be renewed, with a full audit of their financial activities.”
What do we know about Ukraine’s energy corruption scandal?
The allegations that millions of dollars were embezzled came to light on Monday after Ukraine’s National Anti-Corruption Bureau (NABU) published the findings of a 15-month investigation.
NABU alleged that several individuals associated with the energy sector had forced contractors of the state-owned nuclear power company Energoatom to pay bribes of 10% to 15% on contracts in order to avoid payment delays or losing contractor status.
Some of these contracts were related to the construction of protective structures to protect Ukraine’s energy infrastructure from Russian attacks.
NABU said the suspects had created a parallel power structure inside the state nuclear operator, which supplies half of Ukraine’s energy.
Ukrainian Energy Minister Svitlana Grinchuk and Justice Minister Herman Hlyushchenko both stepped down over the scandal but denied any involvement in the scheme.
The scandal also led Zelensky to sanction a close personal aide, businessman Timur Mindich, after investigators implicated him as the mastermind behind the scheme. Mindich is believed to have left Ukraine.
New appointments at Energoatom, Ukrhidroenergo and Naftogaz
Zelensky on Saturday called for a new supervisory board to be appointed at Energoatom “within a week” to enable a “complete change in the company’s management.”
He also called for the early appointment of a new head of hydropower operator Ukrhydroenergo and to begin preparations for the election of a new board at gas provider Naftogaz.
“I have also directed government officials to maintain continuous and meaningful communication with law enforcement and anti-corruption bodies,” he said. “Any schemes uncovered at these companies should receive a prompt and appropriate response.”
Edited by: Shawn Sinico