Ukraine is confronting a political crisis triggered by a large corruption case. Anti-corruption bodies spent more than a year monitoring state energy contracts, gathering recordings, and tracking financial flows. Their findings point to an organized scheme inside Energoatom, the state nuclear operator, involving kickbacks on major contracts and the diversion of funds, which investigators estimate to be more than $100 million.
The investigation alleges that senior officials and business figures enriched themselves through energy contracts and diverted funds into private projects. Among those named are Justice Minister Herman Halushchenko, former Deputy Prime Minister Oleksiy Chernyshov, and businessman Timur Mindich, a former co-owner of President Volodymyr Zelensky’s entertainment studio. Mindich left the country shortly before he was to be detained.
The timing cannot be worse. The Ukrainian military is confronting a growing manpower deficit, low morale, and widespread draft evasion. This evasion is supported through illicit payments to avoid mobilization.
But this latest corruption case comes at a bad time, just as Ukraine tries to boost U.S. and European support. In Washington, some already cite corruption in Ukraine as a reason to scale back assistance. European governments raised concerns earlier this year when Zelensky briefly approved a law limiting the independence of NABU and SAPO, Ukraine’s main anti-corruption bodies responsible for investigating and prosecuting high-level misconduct. He reversed the measure after large public protests and pressure from the West. The new allegations now add another point of scrutiny.
Andriy Yermak, Zelensky’s chief of staff, has become a focal point of political pressure as the corruption case widens. He is not implicated in the Energoatom scheme, but U.S. officials have for years signaled discomfort with his influence and at times have privately urged Kyiv to limit his role or remove him altogether. Domestically, sources argue that Yermak controls access to the president to an unusual degree; one senior official said that if you meet the president without Yermak present, “You start having problems the next day.”
Several high-level political actors are now pressuring the president to replace Yermak to ease public discontent. He remains one of the president’s closest confidants in a system where Zelensky trusts few, but his domination over the political system, ambitions, and lack of transparency have made him unpopular at home.
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Zelensky has publicly endorsed the investigation, calling for the resignation of both the justice minister and the energy minister involved. He has also emphasized that the anti-corruption agencies must remain independent. He has additionally directed a full audit of energy companies and instructed the appointment of new supervisory boards. Despite these moves, the investigation continues to fuel political tensions just as the front-line situation around Pokrovsk worsens. Sources say that more high-level corruption cases are to come to light in the coming weeks.
Whether Zelensky moves to sack his confidant or simply bets that the scandal will lose steam remains to be seen. Still, with morale among troops and the Ukrainian public already declining, the president’s own standing may follow if he chooses not to act.