Kyiv – A major corruption scandal in the Ukrainian energy sector has triggered a political earthquake in Kyiv: Ukrainian Energy Minister Svitlana Hrynchuk is resigning amid investigations within her ministry, but simultaneously denies any wrongdoing. The 40-year-old had only been in office since July.
Earlier, President Volodymyr Zelenskyy had demanded the resignation of Hrynchuk and Justice Minister Herman Halushchenko (formerly Energy Minister himself):"I ask the members of parliament to support these requests," Zelenskyy said in a video message."It is a matter of trust."
Halushchenko was suspended on Sunday, and then submitted his resignation on Wednesday shortly after the Energy Minister.
Cleanup in the energy sector
Zelenskyy announced a comprehensive “purge and reboot” at the management of Energoatom, the state-owned operator of Ukraine’s nuclear power plants (annual revenue: approximately €4 billion).
The president emphasized that he fully supports the anti-corruption authorities, which have intensified their efforts against abuse of power in business and administration in recent weeks.
The case is shaking Ukraine at an already critical stage: According to investigators, it involves a multi-million-dollar bribery scheme affecting not only the energy sector but also the arms industry – the very sector that is crucial for the country's defense in the war with Russia.
At the heart of the affair is businessman Tymur Mindich, a long-time business partner of Zelenskyy. He is alleged to have controlled the awarding of contracts and the flow of money in the energy sector behind the scenes. The accusation against the now-resigned ministers is that they allowed Mindich free rein – in exchange for personal gain. A total of $100 million (approximately €86 million) in bribes is said to have been paid.
The anti-corruption agency NABU estimates that 10 to 15 percent of the funds were embezzled from contracts – even though Ukraine needs every euro to protect its energy facilities against Putin's airstrikes. The main suspect, Mindich, apparently evaded arrest when the authorities tried to raid the site and fled abroad.
