Two officials have stepped down as part of inquiries regarding corruption in Ukraine. Authorities claim they have discovered a financial fra...
Two officials have stepped down as part of inquiries regarding corruption in Ukraine. Authorities claim they have discovered a financial fraud operation within the energy industry. A person connected to Zelenskyy is reportedly involved in the matter.
The situation becomes more complex in the Ukraine corruption case: Justice Minister German Galushchenko and Energy Minister Svitlana Grynchukdeclared their intention to resignAt the urging of President Volodymyr Zelenskyy. Their departures are part of the consequences following disclosures by Ukraine's National Anti-Corruption Bureau (NABU) regarding a significant money laundering operation within the energy and defense industries. Both officials have denied the accusations made against them.
NABU initiated its inquiry during the summer of 2024. Specifically, it examined the activities of the state-owned enterprise Energoatom, which manages four nuclear power stations in Ukraine. The operation was assigned the codename "Midas," inspired by King Midas from Greek mythology, who had the ability to turn anything he touched into gold.
Graft investigation looks for proof within a group of high-ranking officials
Oleksandr Abakumov, head of the investigative team, mentioned in a video posted on NABU's YouTube channel that approximately 70 searches were carried out against senior officials on the morning of November 10. Thousands of hours of audio evidence were gathered throughout the investigation, which has provided proof against a top-level criminal organization operating in the energy and defense industries.
On Tuesday, NABU reported that five individuals had been taken into custody. A total of seven people are believed to be associated with the criminal organization.
The residence of Ukrainian Justice Minister German Galushchenko was one of the locations inspected. Galushchenko led the Ministry of Energy until Svitlana Hrynychuk took over from April 2021 to July 2025. Between 2020 and 2021, he also served as vice president of Energoatom. The Ministry of Justice verified that the investigations are part of a criminal case.
How did the flawed system function?
As per the inquiry, individuals from the criminal organization extorted fees from the energy company's subcontractors. These sums represented 10 to 15 percent of the contract's overall value. If not paid, they risked having their payments for services provided or goods delivered delayed and their status as suppliers terminated.
"In practice, a system was established where a strategic company with a turnover exceeding 200 billion hryvnia [approximately €4 billion, $4.63 billion] was not directed by senior executives, the board of directors, or the state as its owner, but rather by an external individual who acted as an unauthorized shadow manager," stated a NABU announcement.
Wiretap transcripts reveal codenames
As per investigator Abakumov, the criminal network consists of a former consultant to the energy minister, the head of protection and security at Energoatom, four administrative staff members handling anti-money laundering procedures, and a businessperson that authorities suspect is the leader of the illegal group.
The NABU documents and wiretap records employ codenames in place of the suspects' actual names: "Tenor" refers to the managing director of protection and security at Energoatom, "Rocket" is used for the former deputy head of the State Property Fund and advisor to the then Energy Minister Galushchenko, and "Karlson" is the alias for the individual alleged to have led the gang. In a video podcast for the newspaper Ukrajinska Prawda, Abakumov stated that the pseudonyms were not created by the investigators, but by the members of the group themselves.
The group made decisions regarding staff, acquisitions, and financial flows with the assistance of their connections in the ministry and at Energoatom, as stated by Abakumov.
Rumors circulating regarding the participation of Zelenskyy's close associate
As per NABU, "Karlson" was in charge of the so-called "laundry business," which funneled funds acquired through illegal activities into the legitimate financial and economic system. Yaroslav Shelesnyak, a member of parliament from the "Holos" (Voice) faction, states that the voice identified as "Karlson" in the NABU wiretap recordings belongs to businessman Timur Mindich. According to Ukrainian media reports, Mindich's residence was among the locations searched by NABU on November 10.
Mindich is seen as a close ally and trusted advisor to President Zelenskyy. In addition to other positions, he is a co-owner of the television production company "Kvartal-95," which Zelenskyy was involved in establishing. According to a source from the news website Ukrainska Pravda, Mindich departed Ukraine just hours before the investigation began.
Numerous US dollars in stacks of cash
Abakumov informed Ukrainska Pravda that investigators captured footage of four ex-ministers in different scenarios. During the raids, NABU confiscated over $4 million in labeled stacks of cash, wrapped in conventional packaging from the US Federal Reserve Bank.
This indicates that the funds were transferred from the United States to an individual," stated the head of the investigation. "This might involve a bank in Europe or another location around the globe. Subsequently, it found its way to Ukraine in this manner.
The supervisory board of Energoatom stated that it views the corruption accusations against its staff with great seriousness and has scheduled a special meeting to decide on the necessary steps: "This involves initiating an independent audit of the disputed transactions and conducting a thorough evaluation of the company's internal processes and control systems," the statement published on Facebook mentioned.
Energoatom stated that the corruption scandal would not influence the company's assets or its financial status, nor would it affect production schedules or thesafety of nuclear power plants in the country"Our primary responsibility continues to be the dependable, steady, and secure functioning of Ukraine's nuclear power plants, which guarantees the nation's energy safety," the company stated.
What are Ukraine's leaders stating regarding the corruption investigation?
From his perspective, Zelenskyy called for an investigation into the scandal and for those involved to face consequences: "Energoatom is Ukraine's main energy provider. Maintaining integrity within the company is crucial. The energy sector and all other industries, anyone who participated in these activities, should be held accountable. There need to be judgments," the president stated in a video message on November 10.
In an interview with the broadcaster Suspilne, Prime Minister Yulia Svyrydenko highlighted her commitment to backing the nation's anti-corruption agencies in their inquiries: "Combating corruption remains one of the government's highest priorities. There should be convictions and strict punishments for all offenses," she stated, noting that the government has revoked the authority of Energoatom's supervisory board and mandated an immediate review of the company, especially its procurement activities.
This article was first published in Ukrainian.
COMMENTS