Ukraine's anti-corruption watchdog has announced a "large-scale operation" exposing tens of millions of dollars of graft in the energy sector in the midst of Russia's full-scale invasion.
The National Anti-Corruption Bureau of Ukraine (NABU) said the joint operation with the Specialized Anti-Corruption Prosecutor's Office has found the scheme involves "a high-level criminal organization" aimed to "influence strategic enterprises in the public sector, in particular JSC 'Energoatom.'"
The home of businessman and co-owner of the Kvartal 95 studio, Timur Mindich, was also reportedly searched. Kvartal 95 is a Ukrainian comedy troupe whose co-founder is President Volodymyr Zelenskyy.
Mindich has not commented publicly on the reports, while local media outlet Ukrainska Pravda quoted its sources as saying he left the country hours before NABU said it had launched some 70 raids in connection with the investigation on November 10.
The report could not be independently verified.
Zelenskyy lauded the anti-corruption efforts saying that “all and any steps against corruption are very necessary.”
In his daily address on November 10, Zelenskyy said Energoatom, the largest energy provider in Ukraine, is of such importance that it is “necessary to have the company clean.”
"Verdicts and sentences must be handed down" he added.
NABU said the main activity of the criminal organization was the systematic receipt of illegal benefits from Energoatom's counterparties in the amount of 10-15 percent of the value of contracts.
The company has annual revenue of some $4.7 billion.
While Ukraine has been lauded for making strides to rein in corruption, Western governments, anti-corruption watchdogs, and analysts say more work is needed to root out graft.
The OECD said in a report earlier this year that "corruption risks remain high in the context of Russia's full-scale invasion of Ukraine."
The investigation underlines why ordinary Ukrainians and Western governments earlier this year pushed Zelenskyy to reverse a law that took away the independence of the country's leading anti-corruption bodies.
The initial move, which indeed was later reversed, sparked Ukraine's biggest protests since Russia's full-scale invasion in 2022.
The energy sector has been a target of the watchdog for some time.
NABU said its investigation began 15 months ago and saw it record some 1,000 hours of audio that revealed the depth of the scheme, which "was managed not by top executives, the supervisory board, or the state as the owner, but by an outsider who, without any official authority, assumed the role of a shadow manager."
Last month, Volodymyr Kudrytskiy, the former head of the state-run electricity grid, was arrested on embezzlement charges.
Kudrytskiy is currently out on bail and has denied the charges, calling them politically motivated. He alleges they "could not have happened without the involvement of the presidential office."
NABU did not say if Kudrytskiy's case was part of the investigation announced on November 10.
Meanwhile, in July, an RFE/RL investigation revealed that the family of a senior Ukrainian customs chief has a portfolio of luxury real estate and cars.
Anatoliy Komar was head of the Customs Service department that levies duties on imports and exports of oil, gas, and other energy in February 2022, just before Moscow's all-out invasion.
At the time, Komar's monthly salary of about $2,000, while the family's main income came from his wife, Maria, who works as a tour guide and offers online courses. Her declared income was much higher, at around $8,000 per month.
But a detailed look at the family outgoings suggests a much higher income would be required to support their lifestyle.
Asked to explain how the lavish lifestyle was financed, Komar told RFE/RL that he would not comment on personal matters. When pressed, he said it was paid for by a "godfather" who was a "fairly wealthy person," but did not elaborate.
