Amid the Russian invasion, Ukraine is facing a major corruption scandal that has led to the resignation of two ministers and President Volodymyr Zelenskiy’s sanctions on a former business partner and a high-profile aide.
The measure was adopted a day after President Zelenskiy forced the resignation of the energy and justice ministers for their involvement in a money laundering system in the energy sector.
Ukraine’s power grid was severely damaged by the Russian attack, causing power outages before winter. Therefore, this issue is very sensitive for residents.
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The presidential decree imposed “special personal” economic sanctions on 46-year-old businessman Timur Mindić, including freezing his assets. Investigators named Mindich as the mastermind behind a conspiracy in which $100 million in funds from the energy sector were misappropriated.
Mr. Mindić is a co-owner of Kvartal 95, the production company that Mr. Zelenskiy founded when its current president was a well-known comedian.
The businessman, who left Ukraine before the scandal broke, is also suspected of influencing decisions of senior government officials, including Rustem Umerov, former defense minister and current secretary of the National Security Council.
Ukraine’s Energy Minister Svitlana Grinchuk and her German counterpart Justice Minister Galushchenko resigned on Wednesday at the request of President Zelenskiy following revelations of corruption scandals.
Garshchenko, a former energy minister, is also suspected of receiving “personal benefits” in exchange for control of the energy sector’s financial flows given to Mindić. Grynchuk does not appear to be directly involved in the corruption allegations, but Ukrainian media consider her a confidant of Galushchenko.
The involvement of Mr. Mindych, who Ukrainian media outlets claim is a close friend of Mr. Zelenskiy, could be potentially damaging for the wartime leader and a country that aspires to join the European Union.
A European diplomat in Kiev, speaking on condition of anonymity, declared that the government must be “cleansed of corrupt elements.” Germany, a major donor to the European bloc, said it expected Ukraine to do more to fight corruption.
“Operation Midas”. The operation, named “Midas” after the mythical character who turned everything he touched into gold, was revealed by Ukraine’s National Anti-Corruption Bureau (NABU).
The agency said 70 homes were searched and five people were arrested, including an adviser to the Ministry of Energy and a director of state-owned company Energoatom.
The system forced subcontractors to pay bribes of 10% to 15% of the contract value to avoid blocked payments or loss of supplier status. Furthermore, a parallel chain of command with “shadow management” was established and money was laundered through foreign companies.
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