UKRAINE – The Ukraine’s anti-corruption agencies said on Monday that they’ve launched a large-scale corruption probe operation into the country’s energy sector to uncover graft involving a high-level criminal organization.

The National Anti-corruption Bureau of Ukraine (NABU) said in a statement that along with the Specialized Anti-Corruption Prosecutor’s Office (SAPO) it conducted a “large-scale operation” to expose the alleged corruption, adding the investigation involved 15 months of work and 1,000 hours of audio recordings.

“The activities of a high-level criminal organization have been documented,” the statement said, adding the scheme was organized to influence “strategic state-sector enterprises,” particularly national nuclear energy provider Energoatom.

NABU provided further details on the investigation in another readout, saying those involved in the scheme sought to obtain illegal benefits to the tune of 10% to 15% of a state contract value.

“In particular, Energoatom’s counterparties were imposed conditions for paying kickbacks for avoiding blocking payments for services provided/products delivered or deprivation of supplier status,” the statement said.

It claimed that the head of the “criminal organization” involved an energy ministry adviser as well as a former law enforcement officer who led Energoatom’s security. No names were given, however.

“Using official connections in the (energy) ministry and the state-owned company, they ensured control over personnel decisions, procurement processes and the movement of financial flows,” it said, adding that about $100 million had passed through the scheme.

Meanwhile, NABU’s chief detective, Oleksandr Abakumov, said in a video statement that 70 searches were conducted as part of the investigation.

Ukrainian lawmaker Yaroslav Zheleznyak from the Holos political party wrote on Telegram that the home of Justice Minister Herman Halushchenko, who served as energy minister between April 2021 and July this year, was among those searched by NABU.

Two draft bills were later submitted to the Verkhovna Rada, Ukraine’s parliament, by Zheleznyak on dismissing Halushchenko and Energy Minister Svitlana Hrynchuk from office. The draft bills were registered on the parliament’s website, while neither Halushchenko nor Hrynchuk commented on the matter.

Energoatom, which operates the country’s four nuclear power plants, said in a separate statement that NABU and SAPO were conducting an investigation at the company’s office.

“Energoatom fully cooperates with investigative bodies, provides all requested materials and contributes to an objective and transparent investigation. The company does not impede the conduct of procedural actions and is interested in a comprehensive clarification of all circumstances,” it added.

SAPO also announced that its head, Oleksandr Klymenko, created a commission to conduct an internal investigation into what it described as a “possible leak of pre-trial investigation data of NABU and SAPO.”

The investigation comes just four months after Ukrainian President Volodymyr Zelenskyy reinstated the independence of the two major anti-corruption agencies.

Zelenskyy had signed measures into law that brought NABU and SAPO under the oversight of the prosecutor general. He reversed the measures after major protests, including in Kyiv.

A crackdown on corruption is critical if Ukraine hopes to advance its application to join the 27-member European Union, which formally opened accession negotiations with Ukraine on June 25, 2024.

Critics say Kyiv has long suffered from widespread corruption, and the ongoing war with Russia is said to have overshadowed efforts to stamp out graft.

Commenting on the investigation in an evening video address, Zelenskyy said “any effective action” against corruption is “greatly needed” and that the “inevitability of punishment is essential.”

“Everyone who has built corrupt schemes must face a clear procedural response. There must be convictions. And government officials must work together with NABU and law enforcement bodies – and do it in a way that delivers real results,” he added.

Hrynchuk later said during a press conference that she is committed to ensuring a transparent investigation, expressing “zero tolerance for corruption.”

The energy minister said she is unaware of the details of the scheme but expressed hope that the investigation’s transparency will reassure Ukraine’s international partners and not affect international assistance provided.