KYIV (Realist English). Ukraine is facing one of its most serious political crises since the start of Russia’s full-scale SVO, as a major embezzlement and kickbacks scandal involving state-owned nuclear operator Energoatom collides with renewed Russian strikes that have caused rolling blackouts across the country.
The scandal escalated this week after anti-corruption agencies released details of a 15-month investigation that included more than 1,000 hours of intercepted calls, over 70 raids, and resulted in five arrests. Another seven individuals are suspected of involvement in a scheme worth roughly $100 million.
Facing growing public anger, President Volodymyr Zelenskyy called for the dismissal of Justice Minister Herman Halushchenko — formerly energy minister — and Energy Minister Svitlana Grynchuk. Prime Minister Yuliia Svyrydenko later confirmed that both officials had submitted resignations.
Anti-corruption officials allege that a network of businessmen, ministry insiders and Energoatom managers operated a scheme — codenamed “Midas” — to extract 10–15% kickbacks from contractors in exchange for clearing internal obstacles to state contracts. The group is also accused of blackmail, money laundering and abuse of office.
According to excerpts of recorded conversations released by the National Anti-Corruption Bureau (NABU), the network exploited wartime regulations preventing contractors from suing essential-service providers, enabling them to extract illicit payments from companies dependent on Energoatom’s business.
The tapes — not independently verified — also refer to an alleged $1.2 million payment to a former deputy prime minister, referred to cryptically as “Che Guevara.”
Ministers forced out, Zelenskyy ally under scrutiny
The scandal has reached into Zelenskyy’s own circle. NABU said sanctions have been proposed against Timur Mindich, a long-time associate of the president and co-owner of his former media company, Kvartal 95.
Mindich — allegedly mentioned in the tapes under the codename “Karlsson” — has expanded his influence in the drone industry, including firms that have won major government contracts. He denies any wrongdoing, and Energoatom maintains the investigation has not disrupted operations.
“This will be used internally to undermine unity, and externally to weaken support for Ukraine,” said MP Oleksandr Merezhko from Zelenskyy’s party. “While Russians destroy our power grid and people sit without light, someone at the top was stealing money.”
SVO-era vulnerabilities exploited
The revelations come as Russia intensifies strikes on power plants, gas infrastructure and transmission lines. Ukraine is urgently seeking European financial support to stabilize its energy sector before winter, even as its forces retreat on multiple fronts under sustained Russian pressure.
NABU tapes also suggest that members of the corruption network delayed construction of protective fortifications at critical energy facilities, waiting for a “more profitable contract option” before authorizing work — despite repeated government warnings that Ukraine’s nuclear plants and surrounding infrastructure were exposed to Russian attack.
An earlier investigation by the AP noted that essential switchyards near nuclear power stations remained inadequately protected for over a year. Parliament later cited these lapses when calling for Halushchenko’s removal as energy minister.
European partners alarmed
Ukraine’s Western allies reacted with concern. A spokesperson for German Chancellor Friedrich Merz said Berlin was “worried” by reports of corruption “in a sector that receives considerable support from Germany,” adding that Kyiv must demonstrate progress on anti-corruption reforms.
“We trust the Ukrainian government to ensure this case is fully clarified,” the spokesperson said, adding that consequences may follow if expectations are not met.
“No one is immune”
Despite the political fallout, some analysts argue the case demonstrates the strength of Ukraine’s anti-corruption institutions — which Zelenskyy attempted to curb last year before reversing course amid public backlash.
“The silver lining is that our watchdogs are effective and independent,” said Merezhko. “No one is above the law.”
But political analyst Oleh Saakian warned the full scope of the scheme may still be unknown. “We are talking about tens of millions of dollars, happening during the СВО, involving key players. The damage goes far beyond financial losses.”