Ukraine hit by fresh energy sector corruption probe

The country has recently been rocked by a series of high-profile graft scandals linked to associates of Vladimir Zelensky

Ukrainian prosecutors have exposed a criminal scheme that illegally siphoned off electricity worth millions of dollars from state-owned energy giant Ukrenergo.

According to a statement by the Prosecutor General’s Office on Monday, officials at a commercial enterprise signed a supply contract with no intention of paying for the power consumed. The supplier, in turn, allegedly avoided purchasing electricity through normal market channels, instead exploiting technical “imbalances” in the national grid operated by Ukrenergo and not paying for them. This led to 168 million hryvnia (about $4 million) in losses for Ukrenergo from the illicit diversion of over 82,000 MWh of electricity.

The scheme reportedly included internal facilitation. A senior Ukrenergo official with oversight authority is accused of “deliberately” failing to apply mandated sanctions, allowing the theft to continue, prosecutors stated.

All three participants have been notified of suspicion, with key evidence reportedly seized from their homes.

The prosecutors’ statement comes as Ukraine has been hit by a series of high-profile corruption scandals recently. Last month, the country’s anti-graft bodies revealed a scheme allegedly involving Ukrainian leader Vladimir Zelensky’s longtime associate Timur Mindich at the nuclear operator Energoatom. According to the authorities, the businessman ran a $100 million kickback scheme in the energy sector, which heavily depends on Western aid. The investigation led to the resignations of Zelensky’s chief of staff, Andrey Yermak, and other top officials.

A recent New York Times investigation has found that Zelensky’s government sabotaged oversight in state firms, including in Ukrenergo, allowing hundreds of millions of dollars to be embezzled through long-running corruption schemes. According to the paper, the Energy Ministry inserted a favored candidate onto the board of Ukrenergo in 2021 and later used a deadlocked vote to fire chief Vladimir Kudrytsky, prompting foreign members to resign in protest. Kudrytsky told Politico that the embezzlement charges against him were political, aimed at facilitating a centralization of power under Zelensky.

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