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 marks the largest corruption case Zelenskyy has faced since taking office. Allegations indicate that his allies orchestrated the misappropriation of crucial funds, and there are claims that Zelenskyy may have attempted to shield them from investigation. The group, which included several ministers, energy officials, and a prominent businessman, allegedly took control of Energoatom, Ukraine's state-owned nuclear energy provider. They demanded kickbacks of 10-15% from suppliers, threatening those who refused with loss of contracts and frozen payments.

Under martial law, contractors are prohibited from suing strategically important companies like Energoatom for unpaid debts, which the conspirators exploited. Reports suggest that they delayed necessary fortifications of critical energy infrastructure, 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 strikes, particularly following a major assault last weekend.

The investigation, led by the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO), involved over 70 raids across Ukraine, where investigators seized large amounts of cash. The probe, codenamed “Midas,” lasted 15 months and included more than 1,000 hours of wiretapped conversations. NABU has released videos featuring excerpts from these conversations, which have been identified by local media.

In one recording, a conspirator warned of severe 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 discussions also included plans to halt the reinforcement of electrical transformers, which were dismissed as a "waste of money."

Energy Minister Svitlana Hrynchuk, who was implicated in the scandal, resigned on Wednesday, 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 for embezzlement and has significant business interests.

The relationship between Mindich and Zelenskyy dates back to before the president's election, when Mindich introduced him to influential figures in business. Despite attempts to distance himself from Mindich, reports indicate that Mindich's influence grew after Russia's invasion of Ukraine, with allegations that he placed allies in key government positions.

Zelenskyy has faced criticism for not curtailing Mindich's influence and for actions perceived as attempts to undermine anti-corruption efforts. Last summer, he proposed a law that would have placed NABU and SAPO under his control, but reversed course after public protests and international backlash. This has led to questions about his commitment to fighting corruption.

As the investigation continues, attempts to detain Mindich have been unsuccessful, as he reportedly fled Ukraine just hours before the raids on his properties. The fallout from this scandal has raised serious concerns about the integrity of Ukraine's leadership and the impact of corruption on the nation's security during a time of war.