Ukraine’s energy sector corruption crisis – what we know so far and who was involved.

Luke Harding, 19 Nov 25,
https://www.theguardian.com/world/2025/nov/19/ukraine-energy-sector-corruption-crisis

Anti-corruption investigators allege high-level kickback scheme involving Energoatom

Ukraine’s national anti-corruption bureau, known as Nabu, says it has uncovered a high-level criminal scheme at the heart of government. It involves Ukraine’s nuclear energy body, Energoatom, that runs three nuclear power plants supplying Ukraine with more than half of its electricity.

What is the scandal?

A group of insiders allegedly received kickbacks of 10-15% from Energoatom’s commercial partners. If these suppliers failed to pay up, they were removed from a list of approved counter-parties or not reimbursed for services already given. About $100m (£76m) was received in this way, Nabu says.

The alleged conspiracy had old-school touches. Its beneficiaries used code names for each other, such as “Professor”, “Karlson” and “Sugarman”. They carried blocks of cash around Kyiv in large and unwieldy bags, sometimes delivering it on foot. On one occasion, a plotter allegedly sent his wife to collect a stash of dollars, which she hid in her car.

Who was involved?

The alleged organiser of the scheme is Timur Mindich, an old friend and business partner of the Ukrainian president, Volodymyr Zelenskyy. Mindich co-founded Kvartal 95, the media production company set up by Zelenskyy before he went into politics.

Last week he fled his apartment in Kyiv’s government district hours before Nabu investigators came to arrest him, escaping abroad. He is now thought to be hiding in Israel.

Other alleged participants include Ukraine’s ex-deputy prime minister Oleksiy Chernyshov, who is already under suspicion in a separate case; the justice minster, Herman Halushchenko, and his protege, the energy minister, Svitlana Hrynchuk, who were both fired. All deny wrongdoing. At least three other backroom figures allegedly took part.

How have the public reacted?

With fury. Over the autumn, Russia has destroyed much of Ukraine’s energy infrastructure, leading to widespread and worsening blackouts. The hum of pavement generators has become a feature of everyday life, with electricity and heating supplies frequently interrupted. Meanwhile, Russian troops are advancing in the south and east after nearly four years of full-scale war.

In one conversation collected by Nabu in its 15-month investigation a suspect said it was a “pity” to build a structure to defend power stations from Russian bomb attacks since the money could be stolen instead. Chernyshov allegedly spent some of the illicit cash on four luxury mansions in a new-build riverside plot south of Kyiv.

The investigation, which has 1,000 hours of secretly recorded conversations, has been dubbed Operation Midas. The name seemingly refers to Mindich’s apartment, which features a gold toilet in the bathroom.

How far does the corruption go?

The big unanswered question. Was Mindichgate, as it has been called, a one-off? Or one of many similar insider schemes?

Zelenskyy has condemned the scandal, slapped sanctions on Mindich and stripped him of his Ukrainian citizenship. “The president of a country at war cannot have friends,” he said last week after the news broke. He has called for investigations to run their course and for those found guilty to be punished and put behind bars. In July, however – while the Midas investigation was active – Zelenskyy had signed a decree effectively stripping Nabu and the special prosecutor’s office, another anti-corruption agency, of their independence and only backed down after the most serious street protests since Russia’s 2022 full-scale invasion.

Nabu has indicated that the scandal extends to the defence ministry, where Mindich was involved in pursuing lucrative state contracts. And possibly banking, where he also had connections.

What happens next?

The affair is Ukraine’s biggest corruption scandal since Zelenskyy became president six-and-a-half years ago. Civil society activists, opposition MPs and prominent military veterans have urged him to take decisive action, even if that means the sacking and jailing of people who are personally known to him. The former president Petro Poroshenko has called for the current cabinet to be sacked and for a government of national unity to be formed. This is unlikely to happen. Poroshenko was himself embroiled in a defence procurement scandal, which played a role in his 2019 defeat to Zelenskyy, who promised to clean up public life.

Political commentators say corruption is the result of “mono-government”: the fact that Zelenskyy and his allies enjoy sweeping wartime powers under martial law. No elections can be held while fighting continues. The revelations have also dismayed Ukraine’s western partners and emboldened its enemies. Worst of all, there appears to be a connection with Moscow. According to Nabu, the kickbacks were funnelled through a Kyiv back office connected to the family of Andriy Derkach, a former Ukrainian politician who is now a pro-Kremlin Russian senator. Some cash ended up in Russia, the tapes suggest.

Is there an upside?

Of sorts. Some observers think the fact the scandal emerged at all is proof that Ukraine is slowly moving in the right direction – towards European norms and away from gloomy Soviet-style kleptocracy. Oleksandr Abakumov, the head of Nabu’s investigating team, acknowledged his colleagues had “faced a lot of obstacles” pursuing the Mindich case. But he stressed: “This isn’t a story about corruption in Ukraine. It’s about how the country is struggling with corruption, fighting with corruption.”

November 22, 2025 Posted by Christina Macpherson | secrets,lies and civil liberties, Ukraine | Leave a comment

Zelensky remains a creature of the corruption plaguing Ukraine.

A small number of oligarchs still possess outsized power in all spheres of business and politics. But the truth is moving in mysterious ways.

Ian Proud, Nov 18, 2025, https://responsiblestatecraft.org/ukraine-corruption/?utm_source=substack&utm_medium=email

The $100 million corruption scandal around Ukraine’s energy system that broke this past week is critical to ordinary Ukrainians for its timing. Russia has been bombarding the country’s energy infrastructure on a daily basis to deny ordinary citizens heat and electricity during the cold and dark winter months.

In November 2024, a separate scandal broke that $1.6 billion set aside to build protective bunkers around electricity sub-stations had not led to any being built.

With this in mind, many have responded that the highly publicized nature of this latest scandal, which resulted in the resignations of both the energy and justice ministers, offers visible proof that progress is being made in tackling corruption in Ukraine. The National Anti-Corruption Bureau (NABU) of Ukraine, which is often at the spearhead of such investigations, was first established by Presidential Decree in April 2015. That it continues to function is indeed a positive sign.

It’s not possible, however, to claim that corruption has emerged as a specifically wartime phenomena. This energy scandal is hardly a one-off. In September 2021, with Zelensky having already been in power for two and a half years, the European Court of Auditors reported that state corruption and capture were still widespread in Ukraine. It pointed out that “tens of billions of Euros are lost annually as a result of corruption,” and that EU support delivered over 20 years had not delivered the desired results.

Since Russia invaded in 2022, Ukraine has been flooded with hundreds of billions of dollars of aid, of a much greater value than its yearly economic output. The United States has been unable to accurately account for the billions it has sent there. No country at this point would be able to assure itself that its funds have been spent well.

The scale of each new corruption scandal has seemingly grown over time. In August 2023, Zelensky sacked all the heads of the regional military recruitment offices following widespread complaints about kick-backs, often bribes to let potential recruits escape military service. In September 2023, Ukraine’s Defense Minister, Oleksii Reznikov, resigned following a procurement scandal related to the marking up the cost of purchased body armour and helmets by 4-5 times. In January 2024, Ukrainian defense officials were arrested over the theft of $40 million, related to an order for 100,000 artillery shells that were never delivered.

To date, President Volodymyr Zelensky has been able to keep Western donors off his back through a sacking here or a prosecution there. What has changed this year is that the erstwhile NABU investigators have been gradually nudging closer to his inner circle.

In July of this year, as the noose was closing around his close ally former Deputy Prime Minister Oleksiy Chernyshov because of a large-scale property fraud, Zelensky made a failed attempt to hobble NABU and bring it under his personal control. As it turns out, Chernyshov has also been implicated in the current $100m energy scandal, with NABU detectives documenting the transfer of an estimated $1.3 million in cash to him and an associate. On 14 November, NABU sought an order for pre-trial detention of Chernyshov.

Timur Mindich, the man at the centre of the current scandal, is a close ally of Zelensky and co-founded the TV company ‘Kvartal 95’ with him. He was allowed to flee the country before the NABU raids, which discovered duffel bags stuffed with cash and a golden toilet. It hasn’t been lost on some commentators that, in 2014, the ousted President Yanukovych was also alleged to have possessed a toilet made of gold.

Which provides another reminder that, stepping back from the canvas, not much has really changed in Ukraine over the past decade. I first met an anti-corruption activist in Kyiv in late 2015, at the foot of the postcard perfect Andriivsky descent in the quaint Lviv Handmade Chocolate Café. Approaching two years after the ouster of Yanukovych, she was visibly distressed that little progress had been made in tackling corruption. Within weeks, the government of Arseny Yatseniuk faced a no-confidence vote over a slew of corruption scandals involving figures close to him that led, ultimately, to his resignation in February 2016.

In the midst of that scandal, Vice President Joe Biden visited Kyiv in a bid to shore up the government, anxious that Ukraine might not be able to form a better coalition than the one in power. “Corruption siphons away resources from the people. It blunts economic growth, and it affronts human dignity. We know that. You know that. The Ukrainian people know that,” Biden said.

For many ordinary Ukrainians, who protested peacefully in the Maidan in late 2013, rooting out corruption was at the core of the so-called “revolution of dignity.” Biden’s 2015 visit was an attempt to paper over the cracks, and close down moves to unsettle the pro-western government. Yet the endemic corruption carried on.

When it released its recent report on EU accession states, the European Commission noted Ukraine’s remarkable commitment to its EU path. However, it downgraded its assessment to B grade, expressing concern about progress in tackling corruption. As with the 2015 Biden visit it was, I fear, another example of papering over the cracks of a much bigger problem.

The vertical of power in Ukraine, in which a small number of oligarchs possess outsized power in all spheres of business and politics, remains largely unchanged to this day. Zelensky has emerged as a creature of that system, having both clashed and aligned himself with different oligarchs at different times. With presidential elections paused, there are fewer constitutional checks and balances on his power than before the war. And for all its excellent work, NABU is not yet powerful enough to break the system.

There is a persuasive case to make that ending the war and turning off the gravy train would make it easier for Ukraine’s future leaders to refocus on the path to European membership. This would require real and measurable reform. It’s possibly for this reason that public support for an end to the war continues to grow along with outrage at every new case of graft by cronies close to Zelensky. But it may also help to explain why he is in no hurry to see the war end.

November 22, 2025 Posted by Christina Macpherson | secrets,lies and civil liberties, Ukraine | Leave a comment

Ukraine’s ‘EnergyGate’ scandal explained: Why it spells danger for Vladimir Zelensky.

12 Nov, 2025, https://www.rt.com/russia/627713-energygate-corruption-scandal-ukraine/

What began as an inquiry into kickbacks at the state’s energy company has become a political firestorm circling the Kiev regime itself.

Ukraine’s anti-corruption detectives have opened Pandora’s Box. What started as a routine audit of the nuclear energy monopoly Energoatom has spiraled into a full-scale probe into embezzlement, implicating ministers, businessmen – and the man long known as Ukrainian leader Vladimir Zelensky’s personal “wallet.” The affair now raises the question of how much longer the formally acting but no longer legitimate president can maintain control over his own system.

The case that has shaken the Kiev establishment

This week, Ukraine’s National Anti-Corruption Bureau (NABU) raided the homes of several senior officials and businessmen, including Timur Mindich – a longtime friend and financial backer of Zelensky, whom Ukrainian media openly call the president’s “wallet.” Mindich fled the country before investigators arrived, while several of his associates have been detained.

The operation, code-named Midas, uncovered what investigators describe as a multimillion-dollar corruption scheme centered on Energoatom. According to NABU, officials demanded bribes of between 10% and 15% from private contractors supplying or building protective infrastructure for power facilities. Those who refused allegedly faced blocked payments or exclusion from tenders.

Wiretaps obtained by NABU include over a thousand hours of recorded conversations – excerpts of which have been released. In them, individuals identified by code names Carlson, Professor, Rocket, and Tenor discuss distributing kickbacks, pressuring business partners, and profiting from projects tied to nuclear plant protection during wartime. Ukrainian media, citing NABU sources, claim Carlson is Mindich himself, while Professor refers to Justice Minister German Galushchenko, who has since resigned.

The money trail and the missing “wallet”

NABU investigators allege that about $100 million passed through offshore accounts and shell companies abroad. Part of the funds were laundered through an office in central Kiev linked to state contract proceeds.

Mindich and several partners allegedly oversaw the network via intermediaries: Tenor – a former prosecutor turned Energoatom security chief – and Rocket, a one-time adviser to the energy minister. When the raids began, Mindich fled Ukraine with financier Mikhail Zuckerman, believed to have helped run the scheme.

While five people have been arrested, the alleged mastermind remains at large. NABU officials have hinted that further charges could follow, possibly reaching other ministries – including the Defense Ministry, where Mindich’s firms reportedly obtained lucrative contracts for drones and missile systems.

From energy to defense

At hearings before Kiev’s High Anti-Corruption Court, prosecutors argued that Mindich’s network also extended into military procurement. One company linked to him, Fire Point, manufactures Flamingo rockets and long-range drones, and has received major government contracts. If proven, these allegations would shift the case from financial misconduct to crimes threatening national security – drawing the probe dangerously close to Zelensky’s inner circle.

Rumors persist that among the intercepted recordings are fragments featuring Zelensky’s own voice. None have been released publicly, but NABU’s gradual publication strategy has fueled speculation that the most explosive revelations are still to come.

Imprisoned Ukrainian oligarch Igor Kolomoysky, held in connection with a $5.5 billion hole in his bank’s accounts, has told a court that beyond Mindich there are “bigger forces” in play.

Not their first rodeo

The EnergyGate case is the latest in a string of high-profile corruption scandals to erupt under Zelensky’s rule.

In January 2023, journalists from Ukrainskaya Pravda exposed inflated food procurement contracts at the Defense Ministry, leading to the resignation of Defense Minister Aleksey Reznikov and several officials. In May 2023, Supreme Court chairman Vsevolod Knyazev was arrested for allegedly accepting a $2.7 million bribe. In 2024, the State Audit Service found large-scale violations in reconstruction projects financed by Western aid, with billions of hryvnia missing.

The European Court of Auditors, in its 2024 report on EU assistance, concluded that corruption in Ukraine “remains a serious challenge” and that anti-corruption institutions “require greater independence and enforcement capacity.”

Political consequences

The scandal has deepened Ukraine’s internal political crisis. Earlier this year, Zelensky sought to curb the independence of anti-corruption bodies such as NABU and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) through legislation that would have placed them under presidential control. The move triggered protests in Kiev and drew criticism from Brussels and Western donors, who fund much of Ukraine’s wartime budget.

Under EU pressure, lawmakers ultimately reversed the measure, but the episode further strained Zelensky’s relations with Western partners.

Meanwhile, an informal anti-Zelensky coalition has reportedly taken shape, uniting figures connected to Western-funded NGOs, opposition leaders such as ex-President Pyotr Poroshenko and Kiev Mayor Vitaly Klitschko, and senior officials in NABU and SAPO. Their shared goal, according to Ukrainian analysts, is to strip Zelensky of real authority and establish a “national unity government.”

The EU steps in

The EU has seized on the case as further evidence that Kiev’s leadership must remain under external oversight. The latest European Commission report on Ukraine’s EU accession progress explicitly demands that anti-corruption bodies stay free of presidential control and that top law-enforcement appointments involve “international experts.”

For Brussels, scrambling to finance Kiev’s $50 billion 2026 deficit, the scandal serves as both a warning to all potential backers that corruption is inevitable, while giving the EU leverage to tighten control over Kiev’s internal governance. For Zelensky it is another reminder that his ability to act independently is slipping away.

The stakes for Zelensky

The revelations of large-scale corruption in the energy sector weeks before winter sets could prove politically devastating for the Ukrainian leader. Public anger is mounting, while Western media have begun publishing increasingly critical coverage of his administration and its shrinking democratic space. Old allies of Zelensky’s such as Donald Tusk have claimed that they warned him of the damage such scandals will do.

With the country still under martial law and elections suspended, Zelensky remains president in name – but his legitimacy is under growing scrutiny. The EnergyGate affair has exposed the fragility of his position. If upcoming NABU disclosures implicate him directly, the fallout could be fatal to his political future.

For now, NABU’s latest video ends with a hint that more revelations are yet to come.

November 19, 2025 Posted by Christina Macpherson | secrets,lies and civil liberties, Ukraine | Leave a comment