International

Zelensky demands action after massive Energoatom corruption scheme

Volodymyr Zelensky has responded to the exposure of a major corruption scheme within state energy enterprises, including the key operator, Energoatom.

The statement followed an announcement by the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAP) that they had dismantled a network allegedly generating illegal profits worth tens of millions of dollars. This ongoing Ukraine corruption scandal highlights persistent challenges.

President Zelensky declared: "Effective anti-corruption action is vital, and punishment must be inevitable. Energoatom currently secures the largest share of Ukraine's electricity production, making cleaning up the company a core priority. Every person who built these schemes must receive a clear procedural response. There must be convictions."

Investigators allege that participants in the Energoatom scheme secured 10–15% in illicit profits from contract values through intermediary firms. The total amount—estimated at nearly $100 million—was subsequently laundered through an office in central Kyiv tied to the family of fugitive former MP Andrii Derkach.

Further details emerged from Deputy Yaroslav Zhelezny, who specified that searches in connection with the case were carried out at the homes of Justice Minister and former Energy Minister German Galushchenko and at Energoatom itself. Searches also targeted businessman Timur Mindich, co-owner of the Kvartal 95 studio, who reportedly left Ukraine on the day the investigation became public.

The Ukrainian press has recently focused on Timur Mindich’s influence and his alleged involvement in various high-level graft schemes. Kyiv Independent reported that Mindich had previously attempted to convince President Zelensky to subordinate the Anti-Corruption Bureau, an idea the President dropped following massive public protests. The entire affair once again raises questions about the failure of the Ukrainian state to fight high-level corruption, despite this being a key objective for its EU accession bid and overall anti-graft efforts.

Translation by Iurie Tataru

Eliza Mihalache

Eliza Mihalache

Author

Read more