Zelensky vows energy sector overhaul after $100m corruption scandal

Ukrainian President Volodymyr Zelensky has pledged to “reform” state-owned energy companies, after a major corruption scandal engulfed the country’s energy sector.

Anti-corruption investigators said about $100 million (£76 million) had been misappropriated, sparking outrage in a country where Russian attacks led to power outages.

“Along with a complete review of their financial activities, the management of these companies will be revamped,” Zelensky wrote in a post on X on Saturday.

He added that the state nuclear company Energoatom, which was at the heart of the scandal, would have a new supervisory board “within a week.”

Many of those involved in the scandal have close ties to the Ukrainian president.

The scandal is unfolding against the backdrop of escalating Russian attacks on Ukrainian energy facilities, including substations that supply electricity to nuclear power plants.

“I have also instructed government officials to maintain continuous and meaningful contacts with law enforcement and anti-corruption bodies,” Zelensky wrote.

He also called for the quick appointment of a new head for Ukrehydro Energo, a hydroelectric power generation company, and reforms to oil and gas giant Naftogaz, the country’s gas transmission system operator.

Two ministers were forced to resign over the corruption scheme, and a former business partner of Zelensky was sanctioned earlier this week when the scandal broke.

The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP) said on Monday that the 15-month investigation revealed the involvement of several members of the Ukrainian government.

Some of those involved in the scandal are or were close to Zelensky. Those allegedly involved include Justice Minister Herman Haloshenko, former Deputy Prime Minister Oleksiy Chernyshov, and Timur Mendich, a businessman and co-owner of Zelensky’s former TV studio “Kvartal 95.”

Zelensky previously said he was committed to fully cooperating with anti-corruption investigations.

“I have also instructed government officials to maintain continuous and meaningful communications with law enforcement and anti-corruption bodies,” he said on Saturday.

He added, “Full transparency and integrity in the energy sector remains an absolute priority.”

But the scandal has put Zelensky’s commitment to fighting corruption under the microscope once again.

In July, he then faced backlash Signed a law limiting independence Naboo and Sub.

The anger was only calmed by Zelensky’s decision to restore their freedom, but the disaster sparked criticism from European allies including France and Germany, while ambassadors from the Group of Seven major powers expressed their desire to discuss the issue with the Ukrainian leadership.