Ukraine's anti-corruption agency raided the homes of senior government officials and a former business partner of President Volodymyr Zelenskyy as part of an investigation into an alleged multi-million dollar corruption scheme in the country's energy sector.
The National Anti-Corruption Bureau (NABU) said on Monday that it had uncovered "high-level" corruption at Ukraine's state nuclear energy company Energoatom. The investigators accused the state officials, including a former advisor to the Minister of Energy, of receiving kickbacks of $100 million from contractors hired to protect Ukraine's energy infrastructure from Russian air strikes.
The corruption scandal has likely weakened Zelenskyy's reputation, even though there are no direct allegations against the president, threatening to undermine his ties with the US and the European Union (EU). Ukraine has experienced heavy Russian bombardment against its national energy infrastructure since the war started in February 2022.
"The latest scandal with its high-level ramifications is likely to raise many questions among international donors and the local population," Aura Sabadus, a Senior Fellow with the Democratic Resilience Program at the Center for European Policy Analysis (CEPA), wrote on Wednesday. "They are sure to provide fuel for Russian propaganda campaigns in an effort to undermine Western support and stoke division within the country."
Two Ministers Resign after Corruption Allegations
Zelenskyy called for the resignation of Justice Minister Herman Halushchenko, who previously served as energy minister, and the current Energy Minister Svitlana Hrynchuk. They submitted their letters of resignation to Prime Minister Yuliya Svyrydenko on Wednesday.
"The minister of justice and the minister of energy cannot remain in office," Zelenskyy said in an evening video address. "This is, among other things, a matter of trust. If there are accusations, they must be addressed."
Zelenskyy announced a "cleansing and reset" of Energoatom's management. He added that he will sign a decree imposing sanctions on two individuals implicated in the NABU case involving the firm. He gave no further details.
Despite the president's latest move, the corruption allegations continue to affect his close allies. One of the suspects, Tymur Mindich, who evaded law enforcement, is a close associate and former business partner of Zelenskyy. He co-owned Zelenskyy's production company, Kvartal 95, when the president worked as a comedian and actor.
Corruption Scandal to Shake Up US-Ukrainian Ties
The corruption scandal may likewise pose a threat to Zelenskyy's relationship with President Donald Trump. Trump has repeatedly criticized Zelensky since winning the US elections last year.
The US president called Zelenskyy a "dictator without elections" in February. The two have clashed publicly over ending the war that has killed 46,000 Ukrainian soldiers and 13,800 civilians. Trump has pushed to reach an agreement to end the war, often in opposition to Zelenskyy's efforts.
US journalists, notably Tucker Carlson, criticized Zelenskyy for what they say is his undemocratic rule. Carlson called Zelenskyy a "dictator" in an interview with British journalist Piers Morgan in February. The Ukrainian president firmly dismissed.
Critics have accused Zelenskyy of monopolizing power in Ukraine and suppressing opposition through martial law.
"The golden illusion of Ukraine is falling apart," Hungarian Prime Minister Viktor Orban wrote on X today. "A wartime mafia network with countless ties to President @ZelenskyyUa has been exposed. The energy minister has already resigned, and the main suspect has fled the country."
Politicians Criticize Zelenskyy's Alleged Assault on Democracy
Volodymyr Kudrytskiy, former head of Ukrenergo, resigned in 2024 under pressure from Zelenskyy and his allies. Zelenskyy and Andriy Yermak, the head of the President's Office of Ukraine, accused him of embezzlement.
Kudrytskiy successfully provided energy amid constant Russian air strikes. His resignation alarmed energy executives in Ukraine and EU officials in Brussels.
"He was forced out as head of Ukrenergo more than a year ago, with many observers expressing fears in private that the government was exerting influence over strategically important energy state-owned enterprises for murky reasons," CEPA's Sabadus wrote. "He was arrested on claims he had tried to defraud a bank in 2018. Kudrytskyi says the accusations are false, and is currently free on bail."
Opposition lawmaker Mykola Knyazhitskyi said that Zelenskyy wanted to remove political competitors through lawfare in the event of elections after a ceasefire. The mayor of Kyiv, Vitali Klitschko, accused Zelenskyy of purging "democratic principles and institutions disguised as wartime governance."
In response, Tymur Tkachenko, the head of Kyiv's military administration, said that Klitschko exposed "unacceptable weakness" during wartime. Yevhenia Kuleba, member of Kyiv's city council and representative of Zelenskyy's Servant of the People party, accused Klitschko of being tied to a local mafia clan and corruption. He firmly rejected these allegations.
Zelenskyy's Effort to Curb Anti-Corruption Units Backfires
On July 22, Zelenskyy signed a law subordinating the NABU and the Specialized Anti-Corruption Prosecutor's Office to the Prosecutor General. Critics had argued that they would no longer be independent, as state officials could interfere in corruption investigations, thereby threatening Ukraine's hard-won EU candidate status.
After widespread protests, Zelenskyy backed down and restored the independence of these two institutions. His reputation as a credible reformer, however, was significantly tarnished. His approval ratings decreased from 65% in June to 58% in August.
According to a poll conducted by the Kyiv International Institute of Sociology (KIIS) in July 2025, 35% of respondents did not trust the president, a 30% increase since June.
Anton Hrushetskyi, director of the KIIS, said that Zelenskyy has retained a comparatively high level of trust. However, the downward trend should be a worrying signal that "requires thoughtful decisions from the authorities," Hrushetskyi said.
Zelenskyy Should Avoid Derailing EU Membership
While the EU highlighted significant progress towards Ukraine's full membership in the bloc, the latest corruption scandals could derail that path. The EU warned that negative trends must be "decisively reversed" to avoid democratic backsliding.
"Zelenskyy is also facing accusations from political opponents and civil society representatives of using lawfare to silence critics and consolidate power in his own hands," Peter Dickinson, the Chief Editor of Business Ukraine Magazine, wrote on November 4. "This is not a good look for a man who has sought to position himself as one of the leaders of the democratic world."
The EU has paused the accession process for countries that backslide on democracy. It stripped Georgia of its candidate status following the controversial 2024 parliamentary elections and the subsequent use of violence against protesters. The EU said that the "parliamentary elections did not respect international standards for democratic elections."
"For the time being, any disquiet over Zelenskyy's anti-corruption credentials is unlikely to derail Ukraine's EU membership momentum," Dickinson said. "For millions of Ukrainians, the quest to join the EU has become synonymous with the country's civilizational choice of European democracy over Russian autocracy. Zelenskyy would be well advised to keep this in mind."
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