Ukraine's leading anti-corruption agencies have uncovered a significant embezzlement scheme involving $100 million from the country's energy sector. This operation, allegedly orchestrated by a close associate of President Volodymyr Zelenskyy, has raised serious concerns about the security of Ukraine's electrical grid during wartime. Investigators claim that the scheme has contributed to widespread blackouts across the nation this autumn.

The scandal is the largest corruption case Zelenskyy has faced since taking office. It involves a group of high-ranking officials, including several ministers and a prominent businessman, who allegedly took control of Energoatom, Ukraine's state-owned nuclear energy provider. They reportedly demanded kickbacks of 10 to 15 percent from suppliers for contracts, threatening those who refused with loss of supplier status and frozen payments.

Under martial law, contractors are prohibited from suing Energoatom for unpaid debts, which the conspirators exploited. Investigators allege that the group delayed critical infrastructure fortifications, either due to slow kickback payments or a desire to extort more from suppliers. This negligence left electrical substations vulnerable to attacks, resulting in significant damage from Russian missile strikes.

The investigation, codenamed "Midas," has been ongoing for 15 months and involved over 1,000 hours of wiretapped conversations. On Monday, the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO) conducted more than 70 raids across Ukraine, seizing large amounts of cash. They have since released videos featuring excerpts from the wiretaps, which have been identified by local media.

In one recording, a conspirator warned about the consequences for companies that did not comply, stating, "It’ll be total f–king chaos for the whole line of companies. You’ll just end up on the blacklist." The conversations also revealed discussions about halting the reinforcement of electrical transformers, which were dismissed as a "waste of money."

Energy Minister Svitlana Hrynchuk has resigned amid the scandal, along with her predecessor. Both have denied any wrongdoing. NABU has named seven main suspects, including Timur Mindich, a close ally of Zelenskyy and co-owner of Kvartal 95, a production company founded by the president. Mindich has been linked to previous investigations involving embezzlement.

The fallout from this scandal has raised questions about Zelenskyy's connections to Mindich and the extent of his influence within the government. Despite attempts to distance himself from Mindich, reports suggest that the latter's power grew during the ongoing conflict with Russia. Mindich has been implicated in other corruption cases, including a $48 million embezzlement linked to a fertilizer company.

Zelenskyy has faced criticism for his handling of anti-corruption agencies, which were established to ensure political independence. Last summer, he attempted to pass legislation that would have placed these agencies under his control, but reversed course after public outcry and international pressure. This incident has further damaged his credibility, as many believe he sought to protect his allies from scrutiny.

As the investigation continues, millions of Ukrainians are left to cope with the consequences of the alleged corruption, enduring long hours without power. Attempts to detain Mindich have so far been unsuccessful, as he reportedly fled Ukraine shortly before the raids, having been tipped off by unknown sources.