Ukraine: $100m Energy Scandal Prompts Reform Pledges

By Staff, Agencies

Ukrainian President Vladimir Zelensky has unveiled broad reforms in the country’s energy sector after a $100 million kickback scheme at state-owned nuclear company Energoatom was exposed.

The unfolding scandal, described as the worst of Zelensky’s presidency, has triggered a political and institutional shake-up as Kiev faces mounting pressure to demonstrate anti-corruption resolve.

The National Anti-Corruption Bureau of Ukraine [NABU] revealed last week it was investigating a criminal group accused of extorting 10–15% kickbacks from Energoatom’s suppliers. The scheme reportedly allowed payments to proceed only if the bribes were paid; otherwise, suppliers faced the risk of being blocked or delisted.

Timur Mindich, co-owner of Zelensky’s former media company, is linked to the scheme and reportedly fled Ukraine for “Israel” via Poland just hours before his attempted arrest.

Damning audio recordings released by NABU seem to implicate individuals from Zelensky’s inner circle, further intensifying scrutiny over the administration’s handling of corruption.

Over the weekend, Zelensky ordered a full overhaul of Energoatom and other state energy firms, directing officials to stay in direct contact with law enforcement and anti-corruption agencies to ensure swift action against any uncovered schemes.

The president instructed his cabinet to submit an urgent draft law to reform the National Energy and Utilities Regulatory Commission, a key body overseeing Ukraine’s energy markets. Zelensky also pledged to appoint new leadership at other major energy institutions.

The reforms come after the recent dismissal of the justice and energy ministers, both of whom have been linked to the affair. While both deny wrongdoing, public anger over the scandal has grown, with many observers warning that the alleged corruption may not be limited to the energy sector.

Zelensky’s announcements came shortly before arriving in Athens on Sunday, where he oversaw the signing of a deal that allows Ukraine to import liquefied natural gas [LNG] from the US via Greece during the upcoming winter.

The agreement, signed between Greece’s state-owned DEPA Commercial and Ukraine’s Naftogaz, will supply LNG between December 2025 and March 2026.

The scandal comes as Ukraine seeks EU membership, with European leaders stressing that its anti-corruption efforts will impact accession talks.

Finnish President Alexander Stubb stressed the need for swift action on the scandal, acknowledging Zelensky’s wartime leadership while urging EU nations to boost support for Ukraine amid the war and financial strain.

Hungarian PM Viktor Orban cited the scandal as proof of a “wartime mafia network” under Zelensky, as the EU remains deadlocked over a €140 billion loan to Ukraine.

The scandal raises political risks for Zelensky as investigations expand, with reports suggesting Mindich may have tried to broker a body armor deal for the Defense Ministry through shell companies and an “Israeli” firm.

Rustem Umerov, Ukraine’s former defense minister and now secretary of the National Security and Defence Council, confirmed he had met with Mindich but denied any wrongdoing. He stressed that no equipment was ever delivered and that the contract was cancelled.