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Energy Corruption Scandal Threatens Zelensky as Ukrainians Brace for a Fourth Winter of Blackouts

Ukraine faces a politically dangerous moment as a widening corruption probe into energy-security contracts implicates contractors, two ministers and a former associate of President Volodymyr Zelensky. Investigators say about $100 million — roughly 10–15% of some contracts — was diverted from state firms, including Energoatom, while Kyiv endures daily blackouts of eight to 11 hours. Court hearings have released excerpts from about 1,000 hours of recordings, one of which indirectly mentions Zelensky. Analysts warn the president must act decisively to preserve public trust even as the war continues and territory is lost in the east.

Energy Corruption Scandal Threatens Zelensky as Ukrainians Brace for a Fourth Winter of Blackouts

Energy corruption scandal threatens Zelensky as Ukrainians brace for a fourth winter of blackouts

Overview: A widening corruption probe tied to state energy contracts has put President Volodymyr Zelensky under intense political pressure just as Ukrainians prepare for another winter of prolonged power and heating outages. Investigators say roughly $100 million — about 10–15% of the value of some security contracts — was siphoned from state firms, including Energoatom, which operates Ukraine’s nuclear plants.

The inquiry has already cost two ministers their jobs. On Wednesday, the government suspended German Galushchenko, the justice minister and former energy minister; Galushchenko has said he will defend himself. Both he and his successor in the energy ministry have tendered resignations at Zelensky’s request, and parliament is expected to approve them quickly.

Court hearings in Kyiv are being live-streamed and prosecutors say they have released excerpts from about 1,000 hours of recorded conversations between suspects. In a potentially damaging development, one transcript read in court quotes an accused orchestrator, Timur Mindich (codenamed "Carlson"), suggesting he had influence with the president and could arrange meetings — an allegation Zelensky has not commented on. Mindich, a former business associate from Zelensky’s entertainment career, has left the country legally, according to Ukraine’s border service; the cabinet has since frozen his assets and business interests.

The scandal is especially sensitive because it concerns the energy sector at a time when Kyiv residents regularly endure eight to 11 hours of blackouts daily after Russian strikes on power plants and substations. Diesel generators have reappeared outside shops and cafes; candlelit dinners and disrupted heating, lifts and water supplies have become recurrent hardships, particularly outside the capital.

Tymofiy Mylovanov, former minister and head of the Kyiv School of Economics: "The president must act as harshly as possible to preserve public trust. If he does not act, people will assume he is aligned with the accused. If he sanctions, arrests and prosecutes those responsible, he will keep support."

Corruption probes are not new in Ukraine. During the early months of Russia’s full-scale invasion many felt investigations should be deprioritized while focusing on defense. That consensus faded after about a year, and since 2023 Ukraine’s National Anti-Corruption Bureau (NABU) has opened probes into several high-profile cases, including illicit land development and embezzlement of funds intended for soldiers’ provisions.

Public reaction has already been significant: mass anti-government protests this summer — the largest since the invasion — followed Zelensky’s initial support for a parliamentary move to weaken NABU and the Specialized Anti-Corruption Prosecutor’s Office. Under pressure from international partners, he retreated. Recent polling by the Kyiv International Institute of Sociology (conducted before the latest revelations) put trust in Zelensky at roughly 60% — down from earlier this year but still consistent with 2024 levels — while tolerance for corruption has declined.

Business and international voices: Andy Hunder, head of the American Chamber of Commerce in Ukraine, urged full accountability: "Those who stole from the state must be fully held to account. This is a critical moment for Ukraine’s leadership to show that its commitment to integrity and accountability is unwavering." Some analysts warn the scandal could be used as political leverage by foreign actors regardless of whether Zelensky acts decisively.

Why it matters: The intersection of a wartime energy crisis and alleged large-scale corruption threatens both everyday resilience — power, heating and water for civilians during a harsh winter — and political stability for Kyiv’s leadership. How the authorities investigate and prosecute this case will be watched closely at home and by Ukraine’s international partners.