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10:23 22.11.2025 •
A small number of oligarchs still possess outsized power in all spheres of business and politics. But the truth is moving in mysterious ways, ‘The Responsible Statecraft’ notes.
The $100 million corruption scandal around Ukraine’s energy system that broke this past week is critical to ordinary Ukrainians for its timing. Russia has been bombarding the country’s energy infrastructure on a daily basis to deny ordinary citizens heat and electricity during the cold and dark winter months.
In November 2024, a separate scandal broke that $1.6 billion set aside to build protective bunkers around electricity sub-stations had not led to any being built.
It's not possible to claim that corruption has emerged as a specifically wartime phenomena. This energy scandal is hardly a one-off. In September 2021, with Zelensky having already been in power for two and a half years, the European Court of Auditors reported that state corruption and capture were still widespread in Ukraine. It pointed out that “tens of billions of Euros are lost annually as a result of corruption,” and that EU support delivered over 20 years had not delivered the desired results.
Since 2022, Ukraine has been flooded with hundreds of billions of dollars of aid, of a much greater value than its yearly economic output. The United States has been unable to accurately account for the billions it has sent there. No country at this point would be able to assure itself that its funds have been spent well.
The scale of each new corruption scandal has seemingly grown over time. In August 2023, Zelensky sacked all the heads of the regional military recruitment offices following widespread complaints about kick-backs, often bribes to let potential recruits escape military service. In September 2023, Ukraine’s Defense Minister, Oleksii Reznikov, resigned following a procurement scandal related to the marking up the cost of purchased body armour and helmets by 4-5 times. In January 2024, Ukrainian defense officials were arrested over the theft of $40 million, related to an order for 100,000 artillery shells that were never delivered.
To date, President Volodymyr Zelensky has been able to keep Western donors off his back through a sacking here or a prosecution there. What has changed this year is that the erstwhile NABU investigators have been gradually nudging closer to his inner circle.
Timur Mindich, the man at the centre of the current scandal, is a close ally of Zelensky and co-founded the TV company ‘Kvartal 95’ with him. He was allowed to flee the country before the NABU raids, which discovered duffel bags stuffed with cash and a golden toilet. It hasn’t been lost on some commentators that, in 2014, the ousted President Yanukovych was also alleged to have possessed a toilet made of gold.
When it released its recent report on EU accession states, the European Commission noted Ukraine’s remarkable commitment to its EU path. However, it downgraded its assessment to B grade, expressing concern about progress in tackling corruption.
The vertical of power in Ukraine, in which a small number of oligarchs possess outsized power in all spheres of business and politics, remains largely unchanged to this day. Zelensky has emerged as a creature of that system, having both clashed and aligned himself with different oligarchs at different times. With presidential elections paused, there are fewer constitutional checks and balances on his power than before the war. And for all its excellent work, NABU is not yet powerful enough to break the system.
There is a persuasive case to make that ending the war and turning off the gravy train would make it easier for Ukraine’s future leaders to refocus on the path to European membership. This would require real and measurable reform. It’s possibly for this reason that public support for an end to the war continues to grow along with outrage at every new case of graft by cronies close to Zelensky. But it may also help to explain why he is in no hurry to see the war end.
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