Kyiv, Ukraine – Ukrainian President Volodymyr Zelenskyy has announced a sweeping reform of the country’s state-owned energy companies following a major corruption scandal that rocked a sector already strained by Russian attacks.

According to anti-graft investigators, roughly $100 million was embezzled from Ukraine’s energy sector, prompting public outrage amid frequent power outages caused by ongoing Russian assaults.

Ministers Resign, Former Partner Sanctioned

In response to the scandal, Zelensky ordered the resignation of two government ministers implicated in the scheme and imposed sanctions on a former business partner identified as the orchestrator of the embezzlement.

“We are beginning the overhaul of key state-owned enterprises in the energy sector,” Zelenskyy said on X, Ukraine’s official social media platform. “Alongside a full audit of their financial activities, the management of these companies is to be renewed.”

Key Reforms Across Energy Companies

The overhaul will affect Ukraine’s major state energy firms:

• Energoatom, the state nuclear company at the heart of the scandal, will receive a new supervisory board within a week to enable a complete management overhaul.
• Ukrhydroenergo, the country’s main hydropower company, will see the appointment of a new head.
• Naftogaz and other leading oil and gas operators will undergo reforms to enhance transparency, accountability, and efficiency.

Zelensky emphasized the importance of collaboration with law enforcement, stating that government officials must maintain “constant and meaningful communication with anti-corruption bodies.”

European Allies Press for Action

The scandal prompted some of Ukraine’s European partners to urge stronger anti-corruption measures. Zelenskyy reiterated his commitment to full transparency and integrity in the energy sector, stressing that rebuilding trust and strengthening governance remain top priorities.