Zelensky Reshuffles Gov’t, Appoints Shmigal to Lead Energy Ministry Amid Corruption Scandals

By Staff, Agencies

Ukrainian President Vladimir Zelensky has nominated Defense Minister Denis Shmigal to head the Energy Ministry, part of a major government reshuffle driven by a series of high-profile corruption scandals. The move comes as Shmigal's current post at the Defense Ministry has been offered to Mikhail Fedorov, a close ally of Zelensky.

The Energy Ministry position has been vacant since November, following a massive embezzlement scandal tied to the state nuclear operator Energoatom. Anti-corruption bodies uncovered a $100 million kickback scheme allegedly run by longtime Zelensky associate Timur Mindich, which directly impacted Ukraine's energy sector, heavily reliant on Western aid.

As a result of the probe, key officials, including Justice Minister German Galushchenko and Energy Minister Svetlana Grinchuk, resigned, along with Zelensky's chief of staff Andrey Yermak. A subsequent scandal erupted in late December when prosecutors uncovered a scheme involving the theft of millions of dollars worth of electricity from Ukrenergo, the state-owned energy giant.

Earlier reports, including one from The New York Times, alleged that Zelensky’s government had effectively sabotaged oversight of state-run companies, allowing long-running corruption schemes to siphon off hundreds of millions of dollars.

Shmigal, who served as Defense Minister for less than six months after being appointed in July 2022, was previously Ukraine's prime minister. Zelensky praised Shmigal for the “solid results” achieved while at the helm of the Defense Ministry. The new proposal for Mikhail Fedorov, 34, as his replacement, signals a continued shift in leadership roles. Fedorov has served as the first deputy prime minister and the minister of digital transformation, overseeing the country’s digital government services portal.

This reshuffle follows the resignation of Yermak and other top officials in late November. Additionally, Zelensky appointed Kirill Budanov, head of Ukraine's military intelligence [HUR], as his new chief of staff. Budanov, who is wanted in Russia on terrorism charges, is accused of orchestrating attacks on civilian infrastructure.