Scandal underscores Ukraine’s EU ambitions while testing presidential credibility amid Russian attacks.
KYIV, Ukraine: Ukrainian President Volodymyr Zelensky on Wednesday sacked his Justice Minister German Galushchenko and Energy Minister Svitlana Grynchuk over a sweeping $100 million corruption scandal linked to the country’s war-battered energy sector.
Investigators allege that Timur Mindich, a close Zelensky ally and co-owner of the production company Kvartal 95, orchestrated a kickback scheme siphoning government funds, igniting public anger amid widespread power outages caused by Russian attacks.
“The minister of justice and the minister of energy cannot remain in their positions,” Zelensky said in a video posted on social media.
“It is absolutely unacceptable that there are still some (corruption) schemes in the energy sector while Ukrainians are facing daily outages.”
Details of the Investigation
Galushchenko, who served as Energy Minister earlier this year, and Grynchuk, who took office in July, have been asked to tender their resignations. While Galushchenko has not yet been formally charged, the government had previously suspended him pending investigations.
Grynchuk confirmed that Energoatom, Ukraine’s state nuclear operator at the center of the probe, is fully cooperating with investigators.
Court proceedings revealed that Mindich masterminded the scheme, prompting Kyiv to impose personal sanctions on him and fellow businessman Oleksandr Tsukerman. Mindich reportedly fled the country shortly before the allegations were made public.
Zelensky’s production company, Kvartal 95, stressed that the investigation “is not related to the work of the studio.”
A Test of Governance During Wartime
The scandal represents a major test for Zelensky, who has remained popular throughout Russia’s ongoing invasion since 2022. Analysts note that the case highlights the delicate balance Ukraine must maintain: centralizing power to run a war effort while advancing democratic reforms required for European Union integration.
The controversy also draws attention to accusations that Zelensky’s administration is using the judiciary to intimidate critics. Last month, Volodymyr Kudrytsky, former head of national energy company Ukrenergo, was arrested on embezzlement charges. Kudrytsky and supporters claim the action is political retribution for criticizing Ukraine’s energy defense strategy.
“It’s purely political. I am being lined up as a scapegoat,” Kudrytsky said while out on bail.
“The authorities want to demonstrate what will happen if you comment on sensitive matters.”
Reactions from Business and Political Circles
Business ombudsman Roman Waschuk described the evidence against Kudrytsky as “quite flimsy”, cautioning against penalizing officials for performing normal corporate functions.
Opposition lawmaker Inna Sovsun condemned the arrests as part of a strategy to silence dissent through criminal investigations.
The unfolding scandal comes at a critical juncture for Ukraine, which continues to face energy shortages, Russian aggression, and internal scrutiny over corruption, while pursuing its ambition to join the European Union.