Ukraine is facing one of the most serious corruption scandals since the start of President Volodymyr Zelenskyy’s administration, with allegations involving $100 million in kickbacks from the country’s energy sector.
The scandal, which has already led to high-level suspensions and detentions, comes at a critical time as Ukrainians endure blackouts caused by Russian airstrikes targeting the nation’s power grid.
Anti-Corruption Agencies Expose “Operation Midas”
Ukraine’s leading anti-corruption bodies — the National Anti-Corruption Bureau of Ukraine (NABU) and the Special Anti-Corruption Prosecutor’s Office (SAP) — announced they had uncovered an organized network of current and former officials, businessmen, and government figures accused of siphoning funds from the state nuclear energy company Energoatom.
Dubbed “Operation Midas,” the 15-month investigation included over 1,000 hours of surveillance and resulted in the seizure of large sums of cash.
Authorities say the suspects manipulated contracts to receive kickbacks worth 10–15% of project values, laundering about $100 million through a Kyiv-based front office.
So far, five of seven suspects have been detained.
Who Are the Main Figures?
Among the names revealed in court are Justice Minister German Galushchenko, former Deputy Prime Minister Oleksiy Chernyshov, and businessman Timur Mindich, a close ally of President Zelenskyy.
- German Galushchenko, formerly energy minister, was suspended after allegations that he aided Mindich’s money-laundering schemes. He has not been charged but pledged to “defend his integrity.”
- Oleksiy Chernyshov, codenamed “Che Guevara” in NABU recordings, faces charges of illicit enrichment totaling more than $1.3 million.
- Timur Mindich, co-owner of Zelenskyy’s Kvartal 95 film company and a former associate of oligarch Ihor Kolomoisky, is believed to be the ringleader of the kickback operation. NABU says he fled to Israel before being charged.
Mindich’s ties to both Zelenskyy and Kolomoisky — who is currently jailed on embezzlement charges — have fueled public concern over the reach of corruption inside Ukraine’s elite circles.
Parallel Defense Ministry Investigation
The energy probe coincides with a separate corruption investigation into inflated military procurement contracts, reportedly involving Rustem Umerov, former defense minister and current head of Ukraine’s National Security and Defense Council.
NABU alleges that low-quality Chinese bulletproof vests were to be purchased at inflated prices under pressure from business intermediaries. The contract was canceled after the vests failed testing, and Umerov denied any wrongdoing.
Is Zelenskyy Involved?
President Zelenskyy himself is not directly implicated.
In a national address, he reaffirmed that “the inevitability of punishment is necessary” for anyone found guilty of corruption.
However, earlier attempts by his administration to curb the independence of anti-corruption agencies — coinciding with probes into his inner circle — sparked public protests and EU warnings. Facing backlash, Zelenskyy ultimately reversed the move, reaffirming his commitment to transparency.
What’s Next?
NABU continues to track Mindich’s movements abroad and expand the probe’s scope. Meanwhile, the European Union and U.S. officials are closely monitoring developments, as Ukraine’s progress on anti-corruption reform remains a key condition for future EU accession talks and Western aid.
The unfolding scandal underscores a delicate balance for Zelenskyy — maintaining domestic and international trust in his government while leading a country at war.
