Zelenskyy Announces Major Overhaul of Ukraine’s Energy Sector After $100 M Corruption Scandal

Ukrainian President Volodymyr Zelenskyy has launched sweeping reforms in the country’s state-run energy sector, responding to a corruption scandal that has shaken public trust and political stability.

The measures come after the National Anti-Corruption Bureau (NABU) uncovered an alleged $100 million kickback scheme involving Energoatom, Ukraine’s nuclear energy operator, and other key energy institutions.

Zelenskyy has ordered a complete management shake-up at several state energy companies, including Energoatom, Naftogaz, Ukrhydroenergo, and the Gas Transmission System Operator. He has demanded immediate financial audits of their operations and called for the rapid formation of new supervisory boards. In the case of Energoatom, Zelenskyy set a deadline of one week to establish a new board to ensure a full reboot of its leadership structure.

As part of the purge, Zelenskyy has instructed his government to introduce urgent legislation to reform the National Energy and Utilities Regulatory Commission, aimed at strengthening oversight and preventing future corruption. He also said he expects renewed leadership at the State Nuclear Regulatory Inspectorate, the State Energy Supervision Inspectorate, and the State Property Fund.

In a move to reinforce accountability, Zelenskyy has suspended or asked for the resignation of two high-profile figures: Justice Minister Herman Galushchenko (formerly the energy minister) and Energy Minister Svitlana Grynchuk. He has also imposed sanctions on Timur Mindich, a businessman and former close associate, identified by investigators as a leading figure in the alleged scheme.

Zelenskyy emphasized his “constant and substantive communication” with law enforcement and anti-corruption agencies, stressing that any fraudulent scheme must be met with a swift and equitable response. He framed the overhaul as part of a broader commitment to transparency, saying that corruption in a sector so critical, especially during wartime, is “absolutely unacceptable.”

In addition to immediate reforms, Zelenskyy has directed the Asset Recovery and Management Agency (ARMA) to be renewed and to speed up the selection of a new head, aiming to return ill-gotten assets to the Ukrainian state. He has also called for preparations to begin for the sale of shares belonging to Russian-connected entities and collaborators.

Ukraine’s Prime Minister and other government officials have echoed Zelenskyy’s urgency, calling for a full-scale audit across public companies. The scandal has drawn intense scrutiny from international partners, with some European allies urging Kyiv to demonstrate meaningful progress in its fight against graft.

The reform effort comes at a sensitive time. Ukraine continues to face relentless Russian attacks on its energy infrastructure, making the integrity and resilience of its power sector more important than ever. Zelenskyy argues that a clean and stable energy system is not only a matter of economic security but a test of governance and moral responsibility, especially as Ukraine seeks closer integration with the European Union.

Sources: The Guardian, Ukrainska Pravda, Ukraine Today, eNCA, Eurasia Review, Kyiv Independent, Ahram Online,