Zelensky Announces Major Overhaul of Ukraine’s Energy Sector Amid Corruption Scandal

Ukrainian President Volodymyr Zelensky has pledged to reform the nation’s state-owned energy companies following a significant corruption scandal that has shaken the country’s energy sector. The scandal has involved the embezzlement of around $100 million (£76 million), according to anti-graft investigators, sparking public outrage as Ukraine continues to grapple with frequent power outages caused by ongoing Russian attacks on its energy infrastructure.

In a statement posted on X, Zelensky confirmed that a full audit of the financial activities of the implicated energy companies will take place, alongside a complete renewal of their management. “Alongside a full audit of their financial activities, the management of these companies is to be renewed,” he wrote, signaling his commitment to restoring transparency in Ukraine’s energy sector.

Energoatom, the state-owned nuclear energy company at the heart of the scandal, is set to have a new supervisory board installed within a week, according to Zelensky. The president also called for urgent reforms at other state energy firms, including the oil and gas giant Naftogaz, the Gas Transmission System Operator, and the hydropower company Ukrhydroenergo, with a swift appointment of new leadership for each entity.

Close Allies of Zelensky Implicated

The corruption scandal has drawn additional scrutiny because several individuals involved have had close ties to Zelensky. Among those implicated are Justice Minister Herman Halushchenko, former Deputy Prime Minister Oleksiy Chernyshov, and Timur Mindich, a businessman and co-owner of Zelensky’s former TV studio, Kvartal95.

Two government ministers have already resigned in connection with the scandal, and Mindich was sanctioned shortly after the investigation details were made public. The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP) have been leading a 15-month-long probe that has uncovered widespread corruption involving members of the Ukrainian government.

The scandal emerges at a particularly challenging time for Ukraine. Russian forces have increasingly targeted Ukrainian energy infrastructure, including substations that supply electricity to nuclear power plants. This has created widespread power shortages, leaving the Ukrainian public more vulnerable and amplifying the urgency for clean governance and effective management in the energy sector.

Addressing these issues, Zelensky emphasized the need for government officials to maintain “constant and meaningful communication with law enforcement and anti-corruption bodies” to ensure that the investigation proceeds without interference. He reiterated that full transparency and integrity in the energy sector remain a top priority for his administration.

Although Zelensky has pledged to cooperate fully with the anti-corruption investigation, the scandal has intensified scrutiny of his administration’s commitment to fighting corruption. Earlier this year, in July, Zelensky faced backlash after signing a law that curtailed the independence of NABU and SAP. The controversy was later resolved when he reinstated the agencies’ autonomy, but the episode drew criticism from European allies, including France and Germany, as well as G7 ambassadors, highlighting the delicate balance Ukraine must maintain between reform and international trust.

In response to the scandal, Zelensky has outlined a roadmap aimed at restructuring and reforming Ukraine’s state energy companies. This includes the following measures:

1. A full audit of all state energy companies’ financial operations.

2. Replacement of senior management and boards at Energoatom, Naftogaz, and Ukrhydroenergo.

3. Close coordination with NABU and SAP to ensure transparency and accountability.

4. Immediate reforms to strengthen governance structures and prevent future corruption.

By implementing these measures, Zelensky aims to reassure the Ukrainian public and international partners that the energy sector will be restored to full integrity, even amid the ongoing pressures of war.

Despite the challenges posed by both internal corruption and external military threats, Zelensky has consistently emphasized the importance of transparency and accountability. His administration’s actions in response to this scandal will be closely watched by both Ukrainian citizens and international observers. The successful overhaul of the state energy sector could strengthen Ukraine’s resilience, support its energy security, and restore faith in government institutions during a critical period.

In the coming weeks, as new leadership is installed and reforms take effect, Zelensky’s ability to deliver on his promises will be a defining test of his administration’s anti-corruption resolve and its commitment to energy sector stability.

Source- BBC