Top Ukrainian ministers submit their resignations as the country is
rocked by a corruption scandal
[November 13, 2025]
By SAMYA KULLAB
KYIV, Ukraine (AP) — As Russia’s renewed attacks on Ukraine’s energy
infrastructure cause rolling blackouts ahead of winter, a major
embezzlement and kickbacks scandal involving the state-owned nuclear
power company has put top officials under scrutiny.
It's fast becoming one of the most significant government crises since
Moscow's full-scale invasion, with media reports implicating a close
associate of President Volodymyr Zelenskyy.
Responding to a public backlash, Zelenskyy called for the dismissal of
his justice and energy ministers amid the investigation. They later
submitted their resignations, the prime minister said.
Anti-corruption watchdogs — the same agencies Zelenskyy sought to weaken
earlier this year— revealed the findings of a 15-month investigation,
including 1,000 hours of wiretaps, resulting in the detention of five
people, and another seven linked to about $100 million in kickbacks in
the energy sector.
Ukrainian officials are scrambling for European funds to manage mounting
energy shortages as Moscow targets critical infrastructure and natural
gas production to try to sink public morale. Meanwhile, Ukraine’s
outnumbered forces are retreating under relentless assaults in the
nearly 4-year-old war.
The country has been plagued by corruption since gaining independence,
and Zelenskyy was elected on a mandate to eliminate graft. Military
procurement scandals led to the ouster of Defense Minister Oleksii
Reznikov in 2023.
But the timing of this one couldn't be much worse.
“Internally this scandal will be used to undermine unity and stability
within the country. Externally, our enemies will use it as an argument
to stop aid to Ukraine,” said Oleksandr Merezhko, a lawmaker with
Zelenskyy’s party. “It looks really bad in the eyes of our European and
American partners. While Russians destroy our power grid and people have
to endure blackouts, someone at the top was stealing money during the
war.”
One lingering question is how high the corruption goes.
What investigators found
The National Anti-Corruption Bureau, known as NABU, refrained from
identifying the suspects but said they included a businessman, a former
adviser to the energy minister, an executive who oversaw physical
protection at state energy company Energoatem, and others responsible
for money laundering. It dubbed the scheme “Midas.”
The agency also accused eight people of bribery, abuse of office and
possession of disproportionate assets.
The investigation, which NABU said conducted over 70 raids, was welcomed
by Zelenskyy, who urged officials to cooperate with it. Energoatom says
the inquiry didn't disrupt its operations.
NABU released excerpts of tapes in which the network, using code names
and secretive language, discussed blackmail and pressuring Energoatom
contractors to extract 10%-15% in kickbacks and bribes in exchange for
them to do business without facing internal blocks.
The network took advantage of a regulation enforced during martial law
prohibiting contractors from claiming debts in court from companies
providing essential services, such as Energoatom, which has annual
revenues of about $4,7 billion. Four others worked to launder the money
at a Kyiv office.
The tapes, which have not been independently verified by The Associated
Press, say about $1.2 million was given to a former deputy prime
minister, whom the plotters called “Che Guevara,” after the
revolutionary leader.
Ministers resign
Amid the scandal, Zelenskyy called for the ouster of Justice Minister
Herman Halushchenko, who also was a former energy minister, and current
Energy Minister Svitlana Grynchuk.
Prime Minister Yuliia Svyrydenko said they submitted their resignations.
She also said the cabinet submitted proposals to apply sanctions against
Timur Mindich, a close Zelenskyy associate, and businessman Alexander
Tsukerman.
“Among other things, this is a matter of trust,” Zelenskyy said in a
video on his Telegram channel.
That has raised questions about what the country's highest officials
knew of the scheme, especially with war powers concentrated in the
president’s office. Zelenskyy tried to curtail Ukraine’s anti-corruption
watchdogs last summer but reversed course after widespread protests.
Months later, the watchdogs released their findings.
[to top of second column]
|
Herman Halushchenko, Ukraine's energy minister, speaks with the
Associated Press during an interview in Kyiv, Ukraine, April 11,
2023. (AP Photo/Efrem Lukatsky, File)
A Zelenskyy partner
In the tapes, Mindich, 46, a co-owner of Zelenskyy’s Kvartal 95
media production company, is believed to be speaking under the code
name “Karlsson.” Under Zelenskyy, Mindich has gained clout and
influence in multiple industries, including lucrative domestic drone
production.
NABU has investigated his alleged connection with Fire Point, a
drone manufacturer that has risen to prominence by securing
government contracts. NABU investigated the company over concerns it
misled the government on weapons prices.
“It looks like Zelensky distanced himself from Mindich long ago and
when the scandal broke out, Zelensky didn’t start to cover Mindich,”
Merezhko said. “But I don’t rule out that someone from his entourage
might have succumbed to temptation to make a quick buck.”
The AP gained access to the company’s factory in August. Its
executives deny connections to Mindich.
“The key issue here is that the company supposedly affiliated to
Mindich is getting government contracts outside the competition,
because of the personal relationship to the administration," said
Ukrainian investigative journalist Yurii Nikolov, who looked into
the businessman's dealings with Fire Point.
After his suspension as justice minister, Halushchenko said in a
Facebook post that he would defend himself in court.
“I believe that being suspended for the duration of the
investigation is a civilized and proper course of action,” he said.
“I will defend myself in the legal domain and prove my position.”
Halushchenko, who was energy minister from 2021 until July when he
took over as justice minister, has not been formally charged.
“The silver lining in this story is that we have effective and truly
independent anti-corruption bodies which have shown concrete
results,” Merezhko said. “As it turns out, no one is above the law
and no one is immune.”
Political analyst Oleh Saakian said the scheme involved “millions,
tens of millions of dollars,” but he also cautioned that its full
scale is not known. While not the largest corruption scandal in
Ukraine’s history, he noted it took place during wartime and is
connected to “key players” in the government.
Discussions about delays fortifying energy sites
In the tapes from NABU, two discussions involved delays to building
defensive fortifications for energy sites and waiting for a more
profitable alternative before shielding them from Russian attacks.
The talk mentioned giving contracts to build defensive protections
to a known company, and later to increase kickbacks up to 15%.
An AP investigation this year revealed that despite over a year of
warnings from Ukrainian officials about vulnerabilities near nuclear
sites, the Energy Ministry failed to act quickly.
Particularly at risk were unprotected switchyards outside the
perimeter of Ukraine’s three active nuclear plants — vital for
generating power. Lawmakers highlighted this failure in a resolution
calling for the removal of Haluschenko as energy minister and
criticized him for alleged corruption and poor oversight.
Reactions in Europe
Ukraine’s partners have poured money into its energy sector and are
likely to look with consternation on the scandal.
A spokesperson for German Chancellor Friedrich Merz said the
government is concerned by the reports of corruption, noting they
involve “a sector that receives considerable support from Germany.”
The spokesperson, Stefan Kornelius, pointed to worries voiced in
last week’s report by the European Commission and said Ukraine needs
to ensure progress in fighting corruption.
“We will now watch developments in this concrete case and, if
necessary, consequences will have to be drawn from it,” Kornelius
said. But “at the moment we have confidence in the Ukrainian
government that it will ensure this be cleared up, and in the
anti-corruption authority that it will lay bare this case and it
will be brought to a transparent conclusion.”
All contents © copyright 2025 Associated Press. All rights reserved |
