Corporate governance crisis or “Russian footprint”: what the Energoatom scandal really means
11 November 2025 17:24
Energoatom, the state-owned company that provides more than half of Ukraine’s electricity, is at the center of a high-profile corruption scandal that exposes systemic problems in the state energy sector. The NABU and the SAPO announced the exposure of a high-level criminal organization that for years has been demanding 10-15% of the value of contracts from contractors, using a specially created “back office” to legalize the funds.
Some experts doubt the seriousness of the investigators’ intentions, as society has not yet seen any large-scale arrests. But they point out that the corruption network is not only deeply rooted within the company, but is also a symptom of a broader corporate governance crisis in the state-owned energy sector, where those who controlled supplies and made key decisions have been making money for decades.
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Despite the large-scale searches, society has not yet seen any high-profile arrests or official charges.
Managing partner of the National Anti-Crisis Group Taras Zagorodnyi in a commentary for
“The NABU and the SAPO are actually just imitating activities. If you are talking about corruption in the energy sector, where are the arrests? Why haven’t the former chairman of the board, chief accountant, head of the legal department, chairman of the supervisory board been detained, even if he is a foreigner? There is nothing there. This is absolutely provocative nonsense,” says Taras Zahorodniy
The expert points out that after more than 70 searches, no one has been charged, which casts doubt on the seriousness of the investigators’ intentions.
Zahorodniy also criticized the publication of the details of the pre-trial investigation that appeared in the media. He emphasizes that the law was violated. The political analyst links the Energoatom scandal to a broader systemic crisis of corporate governance in the state energy sector.
“I link it to what is happening.“Batkivshchyna has prepared a report of the temporary investigative commission, which clearly shows what is happening in Ukrenergo, Naftogaz, Energoatom and all other so-called “reformed corporate governance structures” – robbery, shifting costs to the population, cost overruns,” Zahorodniy said.
NABU and SAPO response: defendants in the case and suspicions
The National Anti-Corruption Bureau of Ukraine has released details of Operation Midas, which exposed a high-level criminal organization operating in the energy sector.
According to the investigation, the organization included current and former energy officials, a well-known media businessman, and others.
“The members of the organization built a large-scale corruption scheme to influence the activities of strategic public sector enterprises, in particular, Energoatom,” the NABU said.
At the moment, five people have been detained in accordance with Art. 208 of the CPC of Ukraine, and seven more have been notified of suspicion. Among them:
- a businessman – the head of a criminal organization;
- a former advisor to the Minister of Energy;
- executive Director for Physical Protection and Security atEnergoatom;
- four members of the so-called “back office“ involved in money laundering.
Officially, the NABU does not disclose the names of the defendants, citing the secrecy of the investigation.
However, MP Oleksiy Honcharenko made public the names of the people who were allegedly notified of suspicion.
According to him, the suspects include:
- vitaliy Mindich, a well-known businessman and leader of the group;
- former advisor to Energy Minister Herman Halushchenko – Ihor Myroniuk;
- dmytro Basov, Executive Director for Physical Protection and Security atEnergoatom;
- as well as four members ofthe back office involved in money laundering.
The NABU confirmed that the main activity of the group, according to the investigation, was the systematic receipt of illegal benefits from Energoatom‘ scontractors – from 10% to 15% of the value of contracts.
The suppliers of the state enterprise were forced to pay kickbacks to avoid blocking payments or losing their counterparty status. This scheme was called a “barrier“ within the organization .
Energoatom ‘sresponse
At the same time, the Supervisory Board of Energoatom said that it treats the corruption allegations with “maximum seriousness“ and will take the necessary decisions. And in a statement byNNEGC Energoatom on November 11, the company said it was stable and ready for scheduled repairs of power units.
“We would like to emphasize that the incident that occurred in the company did not harm the assets and financial condition of Energoatom, and did not affect the implementation of production plans and the safety of nuclear power plants,” the company said.
Energoatom emphasized that theteam is working in an enhanced mode, providing up to 60% of the country’s electricity, and has already begun preparations for scheduled preventive maintenance of power units in 2026.
A Russian trail without Russia
In the money laundering scheme at the state-owned energy giant, some of the transactions, according to investigators, may have been conducted through the family office of former MP Andrii Derkach, who has now become a senator of the Russian Federation. Military expert and former SBU officer Ivan Stupak explained why Derkach’s involvement in the case is not accidental. After all, he is a former long-time Ukrainian parliamentarian who fled the country and is now a senator of the Russian Federation from the Astrakhan region.
“The NABU found that the operations partially took place in the premises owned or previously owned by Andrii Derkach. And this is not just a coincidence – for a long time, it was he who was in charge of all the “sketchy” moments at Energoatom. Most likely, after his escape, he remained in the business – perhaps he transferred the business to other people, but continues to receive his share,“ Stupak explained.
However, he emphasized that one should not look for a “Russiantrace ” in this story – the corruption network was formed within the Ukrainian system.
“This is not about any political games, but about business processes. “Energoatom generates enormous funds, and those who make decisions or control supplies have been profiting from this for decades,” emphasized Ivan Stupak
Indeed, the NABU and the SAPO confirmed that the money was routed through a back office in the center of Kyiv that specialized in money laundering. According to preliminary estimates, about $100 million waslaundered through it.
“The office received payment in the form of a percentage of the amounts spent, even if the services were provided to third-party clients not related to the organization,“ NABU said.
President’s reaction and possible consequences for Ukraine’s defense capability
In his evening address on November 10, President Volodymyr Zelenskyy briefly but clearly commented on corruption investigations in the energy sector.
“Any effective action against corruption is very necessary. We need the inevitability of punishment. “Energoatom provides the largest share of energy generation in the country. Cleanliness in the company is a priority. Everyone who built “schemes” must receive a clear procedural response. There must be sentences,” the President emphasized.
Zelenskyy also called on the government and law enforcement agencies to work closely with NABU and SAPO “as necessary for the result.”
Regarding the possible impact of the scandal on international assistance, Zahorodnyi has no doubt that partners will continue to support Ukraine.
“What will the Europeans say? That they are cutting off aid so that the Russians can completely occupy us? Our partners are well aware that now is not the time to play bureaucracy. When more drones reach them, they will come to us for help,” Zahorodniy summarizes.
Ivan Stupak emphasizes the importance of completing the investigation and fighting corruption.
“Unfortunately, it has emerged, it has been highlighted by the bodies that have been created. We hope that they will bring the case to an end. We continue to work on eradicating corruption. This is a long process. Americans have been trying to overcome corruption for many decades. And we need to go the same way,” emphasized Ivan Stupak
“Corruption schemes at Energoatom are an undeniable fact that demonstrates the problems of the public sector. At the same time, it is important to emphasize that the reaction of the NABU, the SAPO and the government was immediate. This shows that the state is capable of responding to corruption threats promptly, even if the process of bringing a case to a verdict takes time.
Experts emphasize that the key task remains to ensure the consistency of the investigation and transparency of the process so that society and international partners are convinced of the seriousness of the fight against corruption.
