Scandal Deepens: $100M Energy Kickbacks Put Intense Pressure on Zelenskyy and His Chief of Staff

Ukrainian President Volodymyr Zelenskyy is facing growing demands for greater accountability after investigators uncovered a scheme that reportedly siphoned roughly $100 million from the country’s energy sector. The revelations — including allegations of contractors paying up to 15% in kickbacks to secure work with state nuclear operator Energoatom — have intensified political fallout at a sensitive time for Ukraine.

The allegations

Ukraine’s anti-corruption agencies say the probe relied on more than 1,000 hours of wiretapped conversations in which participants used code names and cryptic language to discuss the operation. Some intercepted calls referenced a shadowy figure nicknamed "Ali Baba," though authorities have not publicly identified that person.

In response to the investigation, Zelenskyy dismissed the energy and justice ministers and imposed sanctions on several associates implicated in the inquiry, including Tymur Mindich, a former co-owner of the president’s media production company.

Political fallout and public anger

The scandal has provoked widespread public anger, especially as many Ukrainians endure frequent power outages caused by Russian strikes. Critics argue that the revelations undermine trust in government at a time when unity and Western support are crucial.

It’s really hard to imagine that all this happening... without political support,

Anastasia Radina, head of parliament’s anti-corruption committee, warned that failing to distance the presidency from implicated figures could deepen an internal crisis.

Pressure on Andrii Yermak

Many opponents and some allies have called for the resignation of Andrii Yermak, Zelenskyy’s long-serving chief of staff, who is widely regarded as one of Kyiv’s most powerful officials. Neither Yermak nor Zelenskyy has been formally accused of wrongdoing in the public investigation, and no public evidence has tied them directly to the scheme.

Yermak has not publicly commented on calls for his resignation. Reports say he has sought to shore up political support, including a reportedly declined request to meet Valerii Zaluzhnyi, the popular former army commander now serving as Ukraine’s ambassador to the United Kingdom.

Wider implications

Lawmakers from Zelenskyy’s own party have expressed unease about carrying the political cost of the scandal. Roughly 30 members are reported to be exploring a cross-party "coalition of national stability" focused on unity, though party leaders say this does not yet reflect an official position. Parliamentary consultations are ongoing.

Observers note the scandal also reopens debate about earlier decisions to reform or limit the powers of watchdog agencies — moves that critics say may have weakened oversight when it was needed most.

Background on key figures

Andrii Yermak has been a close Zelenskyy associate for more than 15 years, rising from lawyer and TV producer to foreign policy manager and chief of staff in February 2020. He has accompanied the president on many foreign trips since the 2022 invasion and is widely described as a central gatekeeper for senior appointments.

People connected to Yermak have come under scrutiny before: two former deputies, Oleg Tatarov and Rostyslav Shurma, left government roles in 2024 amid probes into financial misconduct, while a third, Andriy Smirnov, has faced investigation but remains on staff.

What’s next

The president faces a difficult balancing act: responding to public and parliamentary demands for accountability while preserving political cohesion and maintaining Western backing essential to Ukraine’s defense and diplomatic efforts. Lawmakers and party leaders are consulting on next steps as the investigation continues.