Ukraine Energy Corruption Scandal Hits Zelensky’s Inner Circle

Published: 13 November 2025. The English Chronicle Desk. The English Chronicle Online

Ukraine has been rocked by a major corruption scandal that has led to the resignation of two of President Volodymyr Zelensky’s top allies, including Energy Minister Svitlana Grynchuk and Justice Minister Herman Halushchenko. The resignations follow the release of a lengthy investigation into alleged embezzlement in the country’s energy sector, reportedly involving some of Zelensky’s closest associates.

On Wednesday, President Zelensky formally requested the ministers’ resignations. The scandal centers on an alleged $100m (£76m) embezzlement scheme linked to contractors building fortifications for Ukraine’s energy infrastructure, including at the national nuclear operator Enerhoatom. The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAP) have been investigating the matter for 15 months, compiling over 1,000 hours of audio recordings.

According to NABU, the accused systematically received kickbacks amounting to 10–15% of contract values from Enerhoatom contractors. The anti-corruption bodies also claim that the funds were laundered, with some reportedly transferred outside Ukraine, including to Russia, via a Kyiv office linked to the family of former Ukrainian lawmaker and current Russian senator Andriy Derkach.

The investigation has implicated several high-profile figures, including former Deputy Prime Minister Oleksiy Chernyshov and Timur Mindich, a businessman and co-owner of Zelensky’s former TV studio Kvartal95, who has reportedly fled Ukraine.

Both Grynchuk and Halushchenko have defended themselves. Halushchenko stated he would fight the allegations, while Grynchuk posted on social media: “Within the scope of my professional activities there were no violations of the law.” Despite these claims, the evidence presented by NABU, including photographs of bags of cash and detailed wiretaps, has escalated pressure on the Ukrainian government.

The scandal unfolds amid intensifying Russian attacks on Ukraine’s energy infrastructure, including substations supplying nuclear power plants, highlighting the strategic significance of the sector and making the corruption allegations even more alarming.

Corruption has long been a sensitive issue in Ukraine, and this case highlights the ongoing challenge. Despite a decade of efforts by NABU and SAP, critics argue that systemic corruption remains endemic. In July, nationwide protests erupted after government moves were seen to curtail the independence of these anti-corruption bodies. Ukrainians feared that compromising NABU and SAP could jeopardize the country’s EU candidate status, granted on the condition of credible anti-corruption measures.

The backlash drew international attention, with G7 ambassadors expressing serious concern and requesting discussions with Ukrainian authorities. President Zelensky’s reinstatement of NABU and SAP following the protests helped quell that crisis, but doubts lingered about his commitment to anti-corruption reforms.

This latest scandal, however, raises new questions. For Zelensky, who has built part of his political brand on transparency and reform, the involvement of close allies in such a large-scale embezzlement scheme is particularly damaging. Analysts suggest it could affect Ukraine’s international reputation, particularly at a time when European and global partners are providing substantial support for the country amid the ongoing war with Russia.

The investigation is ongoing, and NABU has promised to release additional evidence in the coming days. Wiretaps, documents, and photographs continue to be analyzed, and prosecutors are exploring the full extent of the alleged network, including potential links to offshore accounts and international money laundering schemes.

For the Ukrainian public, the scandal is deeply concerning. Many citizens have expressed frustration over the persistence of corruption at the highest levels of government, particularly in sectors vital to national security. Social media has been awash with commentary, and protests could emerge if public sentiment grows further.

Observers note that the scandal also underscores vulnerabilities in Ukraine’s energy sector. The combination of foreign attacks, strategic importance, and alleged internal corruption could have severe implications for national security, the economy, and the country’s war effort. International partners and investors are likely to monitor developments closely, assessing whether the Ukrainian government can restore trust and demonstrate accountability.

In the coming weeks, attention will focus on the judicial process, potential criminal charges, and whether more officials connected to the scandal will be implicated. Legal analysts anticipate a complex investigation, given the international dimensions of the alleged money laundering and the involvement of multiple high-profile figures.

For President Zelensky, the scandal is a test of leadership at a time of heightened domestic and international scrutiny. The handling of the crisis, including the transparency of the investigation and the swift removal of implicated officials, will be seen as a benchmark for the government’s commitment to combating corruption.

Ukraine continues to face extraordinary challenges on multiple fronts – defending its territory against Russian attacks, managing economic pressures, and addressing public concerns about governance and integrity. How the government navigates this corruption scandal could have lasting consequences for domestic stability, international support, and the credibility of Zelensky’s administration.