Corupation scandal in Ukraine. Penalties and appeals

Charges against 7 persons

Since 12 November, the media has been reporting an extended corruption scandal in Ukrainian energy, which led to the dismissal of Justice Minister Herman Hałuszczenko. It has been pointed out that the scandal may impede accession negotiations with the EU, but the Enlargement Commissioner assures that it will not jeopardise the process itself and that combating corruption remains 1 of the most serious challenges for countries seeking membership.

The National Anti-corruption Office of Ukraine (NABU) presented on Tuesday details of the group's activities, which, according to the findings, collected from companies cooperating with Enerhoatom, the largest energy maker in the country, bribes representing 10-15 percent of the value of contracts concluded, including services and supplies of equipment. The funds thus obtained were then to be "legalised" through financial facilities in Kiev, through which it was to pass around $100 million.

The NABU charged 7 people, including the alleged group leader, erstwhile advisor to the energy minister, manager of Enerhoatom and 4 officials liable for “legalising” money. 5 of them have already been detained. The media determined that the main organizer was Tymur Mindycz, a businessman associated with Zelenski, who, according to the prosecution, collaborated with Herman Hałuszczenko in controlling the finances of the energy sector and money laundering. Mindich left Ukraine just before the search and is likely to be in Israel.

Compromising recordings

The media besides reported that investigators obtained recordings with the voice of Hałuszczenko and material showing the transfer of money to erstwhile Deputy Prime Minister Alexi Chernyszov.

After the scandal, Zelenski called for the resignation of Hałuszczenko and energy minister Switlana Hrynczuk. Prime Minister Julia Swyridenko announced on Wednesday that they had both resigned. The sound announced that he would repel all charges.

Zelenski besides signed a regulation of the National safety and Defence Council of Ukraine on Thursday introducing peculiar sanctions against 2 Israeli citizens, Tymur Mindich and Alexander Cukerman. The paper was published by the President's office. The sanctions will be sanctioned, among others, with no state awards and their financial assets blocked for 3 years. Israeli citizens are active in NABU's investigation into corruption in Enerhoatom, an operator of Ukrainian atomic power plants, in which the value of embezzled funds is estimated to be at least $100 million.

Ukraine may have a problem

The situation was exacerbated by concerns that the corruption scandal in the Ukrainian energy sector could negatively affect negotiations with the EU. The Commissioner for Enlargement Marta Kos, at the ReBuild Ukraine conference in Warsaw, however, assured that the revealed corruption cases would not halt the accession process. She stressed that anti-corruption measures were appropriate and commendable, especially during the war, and that the fight against corruption was 1 of the most hard challenges for the applicant countries.