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Zelensky pledges energy sector overhaul after $100m corruption scandal
Ukrainian President Volodymyr Zelensky announced sweeping reforms to state-owned energy firms on Saturday, following revelations that officials embezzled nearly $100 million (£76 million) from the sector. The scandal has intensified public anger amid ongoing Russian airstrikes that have left millions facing prolonged blackouts.
Audit and leadership shake-up ordered
In a statement posted on X, Zelensky demanded a "full audit of financial activities" across energy companies and the immediate replacement of their management teams. He specified that Energoatom, the state nuclear operator at the center of the fraud, would receive a new supervisory board "within a week."
The president also called for accelerated appointments, including a new head for hydropower producer Ukrhydroenergo, alongside structural reforms for oil and gas giant Naftogaz and the national Gas Transmission System Operator.
Scandal implicates Zelensky allies
Investigators from Ukraine's National Anti-Corruption Bureau (Nabu) and Specialised Anti-Corruption Prosecutor's Office (Sap) revealed on Monday that the 15-month probe had uncovered involvement by multiple government officials. Among those named are Justice Minister Herman Halushchenko, former Deputy Prime Minister Oleksiy Chernyshov, and businessman Timur Mindich, a co-owner of Zelensky's former production company, Kvartal95.
The scandal has reignited scrutiny of Zelensky's anti-corruption record. In July, he faced backlash for briefly signing a law that curbed Nabu and Sap's independence-a move later reversed after criticism from European allies, including France and Germany, and the G7.
"The full transparency and integrity in the energy sector remain an absolute priority," Zelensky stated, reaffirming his commitment to cooperating with investigators.
Broader context: War and energy crises
The corruption revelations come as Russia escalates attacks on Ukraine's energy infrastructure, targeting substations critical to nuclear plants and civilian power supplies. The dual crises-financial misconduct and wartime destruction-have strained public trust in institutions already grappling with recovery efforts.
Two ministers have resigned over the scheme, while Mindich was sanctioned earlier this week. Zelensky's directive for "constant and meaningful communication" between government agencies and anti-graft bodies aims to restore confidence, though skeptics question whether systemic reforms will follow.
Next steps
Nabu and Sap have not disclosed further details on potential arrests or asset recoveries. The president's office is expected to outline additional measures in the coming days, with international partners closely monitoring progress.
