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Zelensky Orders Swift Overhaul of State Energy Firms After $100M Corruption Scandal

Zelensky orders sweeping reforms after $100M energy graft scandal. He demanded a full audit and immediate management changes at state energy firms, ordered two ministers to step down and sanctioned an alleged mastermind. A new supervisory board for Energoatom is to be appointed within a week, with leadership changes also sought at Ukrhydroenergo, Naftogaz and the main gas operator. European partners have urged Kyiv to strengthen anti-corruption measures.

Zelensky Orders Swift Overhaul of State Energy Firms After $100M Corruption Scandal

Zelensky Announces Major Shake-Up of State Energy Sector

Ukrainian President Volodymyr Zelensky on Saturday announced a rapid and wide-ranging overhaul of state-owned energy companies after a corruption scandal that investigators say siphoned off about $100 million from the sector. The revelations provoked public anger in a country where Russian attacks have already caused widespread power outages and heightened sensitivity to energy security.

Immediate actions: Zelensky ordered two ministers to resign, imposed sanctions on a former business associate identified as an alleged ringleader, and demanded a full audit and management renewals across key state energy firms.

“We are beginning the overhaul of key state-owned enterprises in the energy sector,” Zelensky wrote on X, stressing that full transparency and integrity in the energy sector are an absolute priority.

He instructed that a new supervisory board be installed at Energoatom, the state nuclear company at the heart of the scandal, within a week to enable a complete management overhaul. He also called for the rapid appointment of a new head at hydropower producer Ukrhydroenergo, and announced planned reforms at oil and gas giant Naftogaz and the main gas operator.

Zelensky said his administration will fully cooperate with anti-corruption investigators and has directed officials to maintain constant, meaningful communication with law enforcement and anti-corruption bodies. The scandal has prompted some European allies to press Kyiv to accelerate its anti-corruption efforts and to ensure that funds meant to maintain critical infrastructure are protected.

The episode has intensified scrutiny of a sector already coping with war-related damage, operational strain and high public sensitivity to outages and missing funds. The investigation is ongoing and further personnel and structural changes are expected as audits proceed.

Zelensky Orders Swift Overhaul of State Energy Firms After $100M Corruption Scandal - CRBC News