A significant corruption scandal has emerged in Ukraine, involving a group led by a close associate of President Volodymyr Zelenskyy. This group is accused of embezzling $100 million from the country's energy sector, which has raised concerns about the security of Ukraine's electrical grid during wartime. Investigators suggest that this scheme has contributed to prolonged blackouts across the nation this autumn.

The scandal is the largest corruption case Zelenskyy has faced since taking office. Allegations indicate that not only did his allies orchestrate the theft of crucial funds, but there are also claims that Zelenskyy may have attempted to shield them from investigation and prosecution. The group, which included several ministers, energy officials, and a prominent businessman, took control of Energoatom, Ukraine's state-owned nuclear energy provider. They allegedly demanded kickbacks of 10-15% from suppliers for any contracts signed with the company. Suppliers who refused to pay these bribes risked losing their contracts and having their payments frozen.

The scheme exploited the restrictions of martial law, which prevents contractors from suing strategically important companies like Energoatom for unpaid debts. Investigators believe that the conspirators delayed necessary fortifications of critical energy infrastructure, either due to slow kickback payments or a desire to extort suppliers for larger sums. They also attempted to direct related contracts to companies they controlled, further increasing their profits.

As a result, Ukraine's electrical substations, which connect nuclear power plants to the national grid, became vulnerable to attacks from Russia. Many of these facilities were damaged or destroyed in recent missile and drone strikes, particularly following a large-scale attack that left millions without power.

The investigation has revealed potential links to Russian involvement, as the illicit kickbacks were reportedly laundered through a secret office in Kyiv owned by the Derkach family. Leonid Derkach, the family's patriarch, is a former KGB officer with a controversial past, including alleged ties to the Russian mafia. His son, a former Ukrainian parliamentarian, has been identified as a Kremlin intelligence asset and fled to Russia in 2022 after being implicated in espionage activities.

The National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) are leading the investigation. On Monday, they conducted over 70 raids across Ukraine, seizing large amounts of cash. Their investigation, codenamed "Midas," has spanned 15 months and involved more than 1,000 hours of wiretapped conversations.

NABU has released a series of videos on YouTube featuring excerpts from these wiretaps, which last between 10 to 20 minutes. Although the individuals in the recordings used pseudonyms, local media have identified many of them. One conspirator was heard saying, "It’ll be total f–king chaos for the whole line of companies. You’ll just end up on the blacklist. You’ll be wiped out completely, and all your employees will be conscripted into the army," highlighting the severe consequences for those who resisted their demands.

The conversations also revealed discussions about halting the reinforcement of electrical transformers, which they dismissed as a "waste of money." Allegations have surfaced that some of the embezzled funds were funneled to Energy Minister Svitlana Hrynchuk. The investigation continues as authorities work to uncover the full extent of the corruption and its implications for Ukraine's energy security.