Ukraine Energy Sector Rocked by Corruption Scandal

A major corruption case has come to light in Ukraine, centering on Energoatom, the state-owned nuclear power company. Allegedly, over $100 million was stolen, and the situation involves some well-known business people and politicians, including someone who used to work with President Volodymyr Zelenskyy.

Key People and Penalties

President Zelenskyy signed a decree placing sanctions on businessman Timur Mindich and financier Oleksandr Tsukerman for three years. Both are Israeli citizens. Sources say this detail was important to help freeze their assets in other countries faster.

Timur Mindich: A businessman from Dnipro and part-owner of Kvartal 95 studio, he used to be a business associate of Zelenskyy. He’s accused of being a main organizer of the scheme. He left Ukraine legally not long before NABU (National Anti-Corruption Bureau) agents searched his home. When reporters contacted him, Mindich denied the claims, saying they were lies.

Ihor Kolomoyskyi's Involvement: Ukrainian media sources say that Ihor Kolomoyskyi, an oligarch in jail, and his partner Hennadiy Boholyubov, are playing a key part in revealing information against Mindich. Kolomoyskyi allegedly leaked a lot of information about his past associate.

The Alleged $100 Million Theft

NABU and SAPO (Specialized Anti-Corruption Prosecutor's Office) revealed a scheme, called Midas and Schlagbaum internally, that a criminal group ran inside Energoatom.

The scheme was about demanding kickbacks from Energoatom's private contractors, between 10% and 15% of the contract's value. If contractors didn't pay, they were threatened with being excluded or having payments blocked. The money stolen, about $100 million, was meant to defend Ukraine's important infrastructure.

Seven people have been told they are suspected in the case and aside from Mindich and Tsukerman, the others supposedly involved are:

German Galushchenko: Previously suspended from his job as Minister of Justice (he formerly headed the Ministry of Energy).

Oleksiy Chernyshov: A former Deputy Prime Minister.

Liudmyla Zorina: An Energoatom employee, now in custody.

Official and Global Response

President Zelenskyy spoke about the scandal, saying he hasn't spoken with Mindich since the investigation started. He stressed that people need to be held responsible especially during wartime:

The most important thing is that those who are guilty are sentenced. The President of a country at war can't have friends... Everyone must face the same justice.

He stated that he guarantees that the anti-corruption groups can work without interference.

Global Impact: EU Foreign Policy Chief Kaja Kallas said the scandal was very unfortunate. At a G7 meeting, she said that corruption cannot be tolerated, mainly now, because it's taking money away from where it needs to be. She told Kyiv to act fast and take the situation seriously.

Domestic Impact:

The Cabinet of Ministers removed Energoatom’s supervisory board and suspended Galushchenko.

Kvartal 95 studio issued a statement distancing itself, saying that Mindich’s association is only legal, and he doesn't participate in the studio's business or have control over its content.

NABU and SAPO are going to conduct new searches at the Ministry of Defense as part of a separate case involving inflated procurement contracts.