With Ukrainian forces facing reverses on the front line and the country’s power infrastructure heavily damaged by Russian attacks, the government of President Volodymyr Zelensky has been rocked by a massive corruption scandal.
Energy Minister Svitlana Grynchuk and Justice Minister Herman Halushchenko resigned hours after Zelensky called for their resignation on Wednesday. Both ministers said they would defend themselves against accusations.
Newsweek sought comment from Zelensky’s office via the presidency’s website.
Why It Matters
The scandal raises questions over Zelensky’s personal leadership and could make it harder to gain the international financial support on which Ukraine is reliant for survival at a time that donors are also hard-pressed by other obligations. U.S. President Donald Trump’s administration had already scaled back support, in part over earlier allegations of the misuse of funds.
The scandal could hardly come at a worse time for Zelensky as Ukrainian forces face setbacks on the front line despite inflicting heavy losses on Russian troops who launched the latest invasion in 2022. Meanwhile, attacks on energy infrastructure are causing blackouts heading into winter.
What To Know
After a 15-month investigation that included 1,000 hours of wiretaps, anti-corruption watchdogs said this week they had uncovered evidence of some $100 million in kickbacks in the energy sector. That resulted in the detention of five people, with another seven linked to the scandal, according to the Associated Press.
Allegations from the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) include that officials received payments from contractors doing work to try to prevent Russian attacks. The NABU called the scheme “Midas.” It said suspects included a businessman, the energy minister’s former adviser and an executive who had been overseeing protection at Ukraine’s state energy company Energoatem.
“Right now, it is extremely difficult for everyone in Ukraine—enduring power outages, Russian strikes, and losses,” Zelensky said in an address on Wednesday, according to the presidency website.
“It is absolutely unacceptable that, amid all this, there are also some schemes in the energy sector. Right now, we all must protect Ukraine. Undermining the state means you will be held accountable. Breaking the law means you will be held accountable,” he said.
But the scandal has raised questions over what was known at what times by senior Ukrainian officials.
Protests broke out in Ukraine in July after Zelensky signed a bill that critics said would weaken the independence of the anti-corruption bodies that carried out the investigations. The Ukrainian government had cited alleged Russian influence for curbing the powers of the agencies.
What People Are Saying
Ukrainian President Volodomyr Zelensky: “There must be maximum integrity in the energy sector, in absolutely all processes…. No schemes, and it is good that the Cabinet of Ministers of Ukraine will provide full support to the investigation and all procedural and judicial actions.”
National Anti-Corruption Bureau of Ukraine: “NABU and SAPO have exposed a criminal organization comprising current and former officials, a well-known businessman, and other individuals. Its members had developed a large-scale corruption scheme to influence strategic state-owned enterprises, particularly JSC ‘NNEGC ’Energoatom,’ to obtain unlawful benefits and launder money.”
Oleksandr Merezhko, a lawmaker with Zelensky’s party, quoted by the Associated Press: “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…. 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.”
Former Texas Representative Ron Paul: “Now we see a massive corruption scandal break out right on the doorstep of the Ukrainian president, Zelensky. Ending the Ukraine war could have easily been done by pulling the plug on the money train.”
What Happens Next
Investigations will continue. Those accused will fight to clear their names, but prosecutions and court proceedings will take time. The Ukrainian leadership will certainly be under pressure from donors to take swift action on transparency and to show it is curbing corruption, but the scandal is already a blow to those seeking further support for Kyiv.
Reporting from the Associated Press contributed to this article.
Read the full article here
