Operation Midas of Ukraine’s anti-corruption agency exposed a $100 million corruption network, causing many high-ranking officials to be investigated.
The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) launched a large-scale investigation earlier this week, targeting violations at nuclear power producer Energoatom. NABU announced the discovery of a “high-level criminal organization” specializing in receiving bribes from contractors with contracts with Energoatom.
“A total of about 100 million USD was transferred through this money laundering system,” NABU said.
Oleksandr Abakumov, leader of NABU’s investigation team, announced that nearly 1,000 agency personnel conducted 70 searches with many Ukrainian officials. The campaign is called “Midas”, named after King Midas in Greek mythology, who could turn everything he touched into gold.
NABU exhibits confiscated during the search. Image: Facebook/NABU
According to Abakumov, the investigation began in the summer of 2024 and has lasted 15 months. Authorities have collected thousands of hours of audio tapes, providing evidence that there is a group of high-level criminals in the energy sector.
This group requires Energoatom’s contractors to “kickback” 10-15% of the contract value, otherwise they will not be paid for the services or products provided, and may be removed from the list of contractors.
“An underground organization has appeared in this state-owned strategic corporation, which has a turnover of more than 200 billion hryvnia ($4.63 billion) per year,” NABU said. Energoatom’s entire procurement, personnel and payment activities were manipulated by individuals who did not hold any positions at the corporation.
NABU identified businessman Timur Mindich, nicknamed Carlson, as the head of this system. Mindich also has a close relationship with President Volodymir Zelensky, while well-informed sources say the two had little contact after the outbreak of hostilities.
Mindich fled abroad, possibly to Israel, hours before the team of investigators arrived at the suspect’s apartment in Kiev to execute a search warrant.
Ukrainian media listed other suspects as former deputy prime minister Oleksiy Chernyshov, former advisor to energy minister Ihor Myroniuk, former head of Energoatom security and physical protection department Dmytro Basov, former energy minister Herman Halushchenko, currently minister of justice, Oleksandr Tsukerman and several other businessmen.
According to NABU, Myroniuk was a confidant who carried out Mindich’s requests, while Basov would block payments to Energoatom’s contractors to demand kickbacks. Investigators said Myroniuk and Basov tried to destroy personal phones during the search.
NABU identified a “financial office” that laundered bribes through a network of companies outside Ukraine. This office is located in a building related to the family of congressman Andrii Derkach, whom Myroniuk once advised. Derkach fled Ukraine in 2022, after Russia launched a campaign in the country.
The money laundering operation was coordinated by the “Tskerman Brothers” group, Mindich’s business partners. Investigators believe that more than 100 million USD has circulated through this office, in the form of cash, foreign currency accounts, and electronic money.
Timur Mindich, who is believed to be the head of a corruption network involving many Ukrainian officials. Image: Kyiv Independent
An audio recording shows Tsukerman saying in February that the group planned to transfer $300,000 to former deputy prime minister Chernyshov. NABU accused the suspects of giving Chernyshov $1.2 million and 100,000 euros. The former deputy prime minister of Ukraine has not commented on this information.
To date, NABU has only announced the first three parts of Operation Midas, and will continue to post the content of the recorded recordings. 5 people were arrested, 7 suspects were prosecuted for their involvement in organized crime. This could become the biggest corruption scandal in Ukraine’s energy sector since the outbreak of hostilities.
NABU seized more than $4 million in cash wrapped according to US Federal Reserve standards. “This shows that the money was transferred from the US to someone, and then brought back to Ukraine,” Abakumov said.
Ukraine’s energy infrastructure is continuously suffering from Russian raids and the country is facing the risk of serious electricity shortages. Allegations of corruption in the energy industry have sparked a new wave of public outrage.
“This war is not only taking place on the front lines, but also within the country, between those who want change and those who want to cover everything up with money and silence,” said anti-corruption activist Martyna Boguslavets.
Minister of Justice of Ukraine German Galushchenko (left) and Minister of Energy of Ukraine Svitlana Grynchuk. Image: AFP, mev.gov.ua
President Zelensky on the evening of November 10 expressed his support for the fight against corruption, affirming that this is a “very necessary” activity and adding that “punishment is inevitable”. The Ukrainian Cabinet on November 11 dissolved Energoatom’s Supervisory Board and announced an independent audit of the company.
Justice Minister Halushchenko and Energy Minister Svitlana Grynchuk resigned, after President Zelensky urged them to do so. In the recording collected by NABU, Haluschenko has the nickname “Professor”, and Ms. Grynchuk is not considered to have benefited from this corruption scandal.
Ukrainian authorities have imposed sanctions on Mindich and “money launderer” Tsukerman.
Energoatom affirmed that the corruption scandal did not affect the company’s assets or financial situation, nor did it affect the production plans or safety of nuclear power plants.
“Our main task remains the reliable, stable and safe operation of Ukraine’s nuclear power plants, ensuring energy security for the country,” the company said.