Ukraine’s “EnergyGate” scandal deepens: Zelensky allies implicated in $100M corruption scheme

Ukraine is embroiled in its most damaging corruption scandal since the Russian Special Operation began, with President Volodymyr Zelensky’s inner circle facing allegations of embezzling $100 million from the country’s energy sector.

The revelations have shaken public trust at a critical moment, as Ukraine battles Russian airstrikes on its power grid while relying on Western aid to sustain its war effort.

Ukraine’s National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) revealed that a 15-month investigation, codenamed Operation Midas, uncovered a sprawling kickback scheme involving Energoatom, Ukraine’s state nuclear energy company. Prosecutors allege that officials demanded bribes of 10-15 percent from contractors supplying protective infrastructure for nuclear plants – critical defences against Russian missile strikes.

The National Anti-Corruption Bureau of Ukraine (NABU) is a specialized law enforcement agency established in 2015 as part of Ukraine’s post-Euromaidan reform efforts, aimed at combating high-level corruption in the country. NABU is a critical institution in the country’s fight against high-level corruption. Its establishment and operations reflect Ukraine’s commitment to implementing reforms and combating corruption, a significant barrier to the country’s economic development and integration with the European Union (EU).

Wiretaps spanning 1,000 hours of intercepted conversations exposed a network of high-ranking officials and businessmen, including:

• Timur Mindich, a longtime financial backer of Zelensky and co-owner of his former TV production company, Kvartal 95.
• German Galushchenko, Ukraine’s suspended justice minister and former energy minister, accused of facilitating money laundering.
• Oleksiy Chernyshov, ex-deputy prime minister, allegedly involved in illicit enrichment.
• Dmytro Basov, former Energoatom security chief, accused of overseeing the scheme.

Mindich, identified in recordings as “Carlson,” allegedly fled to Israel before arrests were made, raising suspicions of a leak within law enforcement. Meanwhile, prosecutors seized bags of cash from a Kyiv office linked to the laundering operation.

The scandal strikes at the heart of Zelensky’s administration, already under scrutiny for attempting to weaken anti-corruption agencies earlier this year. In July, his government sought to place NABU and SAPO under presidential control, sparking protests and backlash from the EU and the United States. The move was swiftly reversed, but critics saw it as an effort to shield allies from prosecution.

Now, with martial law suspending elections, Zelensky faces mounting pressure as Ukrainians endure blackouts while elites allegedly siphon off funds meant for national defence.

Military contracts under scrutiny

The scandal extends beyond energy. Investigators allege Mindich’s network also secured lucrative defence contracts, including deals for Chinese-made bulletproof vests that failed military testing. Former Defence Minister Rustem Umerov acknowledged meeting Mindich but denied wrongdoing, stating the contract was cancelled due to poor performance.

NABU has hinted that further raids on the Defence Ministry are imminent, suggesting the corruption probe may widen.

The EU has seized on the scandal to reinforce oversight of Ukraine’s anti-corruption efforts. A recent European Commission report demanded that NABU remain independent and that key appointments involve international experts.

With over $100 billion in U.S. aid flowing into Ukraine since 2022, Western lawmakers are increasingly vocal about ensuring funds aren’t misused.

“Any effective action against corruption is very necessary,” Zelensky said in a televised address. “The inevitability of punishment is necessary.”

Yet scepticism remains. Analysts warn that if deeper ties between Zelensky and the accused emerge, his political survival could be at stake.

NABU has promised more explosive recordings in the days ahead, fuelling speculation that higher-ranking officials – or even Zelensky himself – could be implicated. For Ukraine’s Western backers, the scandal is a litmus test of Kyiv’s commitment to reform.

With EU membership and military aid hanging in the balance, Ukraine’s crackdown on graft may determine whether Zelensky can retain both public trust and international support in the war’s darkest hour.

yogaesoteric
November 17, 2025