Ukraine Proposes New Energoatom Supervisory Board Amid Corruption Probe

During this week, the Ministry of Economy, Environment and Agriculture, in cooperation with partners from G7 countries, will submit to the government for approval proposals regarding the new composition of the Supervisory Board of JSC “NAEK” Energoatom.

The department has already begun work on candidate lists, and an advisor has been appointed to assist the ministry in this matter.

In the conditions of full-scale war, the Supervisory Board of the state energy company must be responsible not only for strategic development but also for crisis management, as well as for “timely reaction to risks and ensuring the safety and sustainability of the company’s operations.” “Updating the board’s composition is aimed precisely at strengthening these functions, as well as ensuring rapid interaction of the company with anti-corruption and auditing bodies, international partners and society. This concerns the need to adapt the corporate governance system to new challenges – faster decisions, anti-crisis mechanisms, and enhanced accountability,” – the statement reads.

Action Plan and Energoatom Audit

In addition, parallel to the government’s instruction, the State Audit Service has launched a comprehensive audit of Energoatom. The procurement audit is to be completed within 15 working days, the full audit within 90 working days. After that, the materials will be forwarded to law enforcement and anti-corruption authorities, and the final report will be submitted to the government.

Swift decision-making in the situation around Energoatom is important not only for internal stability but also for Ukraine’s obligations to the IMF, the World Bank, and the EU. It demonstrates the state’s readiness to act in line with international standards and to protect partner investments even in challenging conditions

Chronicle of Investigations and Response to Embezzlement

What is known about the embezzlement case at Energoatom: on November 10, NABU announced a large-scale operation “Medusa” to uncover corruption in the energy sector, during which more than 70 searches were conducted. The agency released recordings of conversations of suspects with code names and stated that the scheme included: “Roket,” who was an advisor to the former energy minister and is now the head of the Ministry of Justice, Herman Galushchenko; “Tenor,” who was the executive director for physical protection and security of Energoatom; a well-known businessman and four others. In total they managed to launder $100 million.

Energoatom stated that it fully cooperates with the investigative authorities, facilitates a transparent investigation and provides all materials requested by law enforcement. Energy Minister Svitlana Hrinchuk stated that neither she nor the former head of the ministry, Herman Galushchenko, had an advisor named Ihor Myroniuk, who is mentioned in the investigation under the alias “Roket.” She also noted that Energoatom is not under direct control of the Ministry of Energy, but assured that the ministry will respond in accordance with the results of the investigation.

In the Office of the President, they commented on the anti-corruption authorities’ investigations into the energy sector embezzlement scheme and stated that for all those involved, there must be inevitability of punishment. President Volodymyr Zelensky stated that we need “effective actions” and the necessary inevitable punishment for all those involved in schemes in the energy sector. On the morning of November 10, “Ukrainska Pravda” reported, citing sources, that NABU officers conducted searches at the businessperson and co-owner of the firm “Kvartal 95” Timur Mindich. According to the publication, he himself left Ukraine a few hours earlier. The State Border Guard Service stated that they did not have access to information about the businessman’s departure. “Ukrainska Pravda” also claims that the first deputy head of the SAP Andriy Synyuk had access to high-profile cases and conducted “covert meetings” before Mindich’s alleged departure. The official told journalists that he did not “leak” any information, and also that he did not have access to cases that could be related to Mindich and Energoatom. Because of this, SAP head Oleksandr Klymenko created a commission for an internal inquiry into a possible leak of information from NABU and SAP. On November 11, during a court hearing on the selection of a preventive measure for Ihor Myroniuk, the prosecutor in the case announced that Herman Galushchenko, former Minister of National Energy, Oleksiy Chernyshov, and Timur Mindich are involved in the Energoatom embezzlement case and investigations against them are also underway.