25.04.2025
Investigations
Galushchenko drains billions: how the Ministry of Energy steals partner aid to protect Ukraine’s energy facilities
In the midst of war, when Ukraine’s energy security is a matter of survival, the Ministry of Energy under the leadership of Herman Galushchenko is demonstrating blatant inefficiency and indulging in billion-dollar corruption schemes. Instead of strengthening the country’s energy independence, strategic enterprises such as Energoatom, Ukrenergo, Ukrhydroenergo and Centrenergo are becoming centers of embezzlement of budgetary and international funds allocated to protect energy facilities from enemy attacks. These actions not only undermine the trust of international partners, but also threaten the stability of the energy system in times of war.
Billions of hryvnias that could have been spent on modernizing nuclear power plants, protecting hydroelectric power plants from drones, or restoring thermal power plants after missile strikes are ending up in the pockets of people close to the government. Ignoring numerous scandals, Galushchenko does not take measures to stop the fraud, allowing corrupt officials to misappropriate funds intended for national security.
Below, we reveal how Ukraine’s key energy companies are mired in schemes that threaten the country’s future.
How Energoatom is stealing the budget under the guise of nuclear power plant safety
Energoatom also did not stand aside from the fraudulent schemes, in particular, for the purchase of fireproofing materials, pipes and design work for hundreds of millions of hryvnias, leaving the state with overpayments and threats to the safety of nuclear power plants.
Scheme #1: Fire protection materials at inflated prices. In 2023, Energoatom signed a contract with Atomenergoresurs LLC for the supply of fireproofing materials for NPPs worth UAH 63 million. The delivery took place in 5 days, but the terms of the agreement raised serious questions.
For example, materials from the German company svt Products GmbH were purchased at prices that were 3.5 times higher than European market prices. At the same time, Energoatom justified the inflated prices by the “technical compatibility” of the materials, but did not provide evidence why analogues were not considered.
In addition, Atomenergoresurs LLC became the only tenderer due to excessive requirements for documents that scared off other suppliers. By the way, in May 2024, the company received an order for UAH 279 million to improve fire safety at the South Ukrainian NPP, but the contract was terminated due to “financial problems”.
Scheme #2: Pipes at double the price. Another procurement that raises questions is a contract for the supply of welded pipes for nuclear power plants worth UAH 340 million. According to Prozorro, the price was 20.69 euros/kg, although in 2019 similar pipes cost 9.65-10.41 euros/kg. Over five years, the price of nickel on world markets has increased by only 9%, which does not explain the doubling of the price.
Scheme #3: Fictitious design work and conflict of interest. In 2023, Energoatom signed a contract for environmental safety design work worth UAH 12 million. The winner of the tender was A.V. Nosovsky, although the authorized person for the procurement was Iryna Mitichkina, who lives with Nosovsky in an unregistered marriage. This is a direct conflict of interest, which led to the failure to perform the work, despite the full prepayment.
And although, based on our materials, the Shevchenkivskyi District Prosecutor’s Office of Kyiv registered the information in the URPTI under Part 1 of Article 191 of the Criminal Code of Ukraine, the situation has not changed dramatically.
Energy crisis or corruption schemes of “Ukrenergo”
Scheme #1: Tender for UAH 18.5 million for E-Light LLC. In March 2023, NPC Ukrenergo (NPC) entered into an agreement with E-Light LLC for the supply of BIG-IP Virtual Edition software worth UAH 18,499,200 (excluding VAT). The tender was conducted with numerous violations. For example, the terms and conditions, developed on the instructions of Ukrenergo CEO Oleksiy Brekht, contained a clause on five-year licenses, although the market offers only one- or three-year subscriptions. This deliberately limited competition, guaranteeing the victory of E-Light LLC.
The acceptance certificate was signed before the goods were checked for compliance. It was only in April and July 2023 that it became clear that the licenses were valid for only three years, not five, as stated. Ukrenergo officials ignored the possibility of terminating the agreement due to non-compliance.
Due to the discrepancy between the licenses and the market value, the state overpaid millions of hryvnias, which was a direct loss for Ukrenergo.
Scheme #2: A billion for Structum with no result. An even more striking case occurred in the summer of 2024. “Ukrenergo signed a UAH 1.9 billion contract with Structum to reconstruct the Chornobyl NPP-Slavutych high-voltage lines. The goal is to allegedly ensure a stable power supply from the nuclear power plant.
At the same time, Structum, which is associated with former Energy Minister Yuriy Vitrenko, received UAH 1 billion in advance payment (60% of the amount), but has not started work.
The Ministry of Energy and the State Agency of Exclusion Zone Management (SAUEZM) under Ishchenko’s leadership did not respond to the violations. The SAUEZM did not even prepare the necessary documentation, which allowed Structum to avoid responsibility. At the same time, officials at the Ministry of Energy shifted the blame for the project’s failure to local state-owned enterprises, such as Pushcha Roshcha and the Chornobyl Biosphere Reserve, which had not been instructed to prepare the documentation.
Tenders for the protection of hydroelectric power plants from the Shahedin by Ukrhydroenergo
Ukrhydroenergo, just like its predecessors, concludes contracts worth billions of hryvnias without open bidding. This is being done not only under the prism of “energy security” but also to protect energy infrastructure facilities from enemy attacks.
Scheme #1: UAH 23 million for “expertise” of construction contracts. In 2024, Ukrhydroenergo signed a contract with Zakarpattia Institute of Forensic Expertise and Accessibility Issues LLC (the sole bidder) for UAH 23.34 million to conduct examinations of 41 construction contracts. The services included construction, technical, commodity and electrical expertise, but their cost raised questions.
For example, one expert hour cost UAH 437, and a full analysis of one contract cost up to UAH 732 thousand, which is significantly higher than market prices for such services. By the way, previous investigations indicate that Ukrhydroenergo often uses “expertise” as a mechanism for withdrawing funds through controlled companies.
Scheme #2: UAH 4.36 billion for a little-known company. Another interesting case is the contract with Adamant Construction Company LLC for the construction of a protective structure for the Dnipro HPP worth UAH 4.36 billion. The company’s largest previous project was the reconstruction of a landfill in the village of Pidhirtsi for UAH 326 million six years ago. Other projects, such as the reconstruction of tram lines in Kyiv or the construction of a bridge in Zakarpattia, have not yet been completed.
According to our materials, the TU BES in Kyiv was registered in the URPI under No. 72024102100000025, Part 5 of Art. 191 of the Criminal Code of Ukraine. However, whether the investigation is effective is a rhetorical question.
Millions for Medvedchuk’s associates: how Centrenergo finances companies linked to terrorism
Scheme #1: Contracts with a company associated with Medvedchuk. The state-owned company Centrenergo signed contracts worth UAH 18 million with Kharkivenergoremont-Holding LLC, co-owned by Lyudmyla Kuzyara, the wife of Serhiy Kuzyara, a key person involved in the criminal case of illegal coal supplies from the occupied territories.
In 2024, Centrenergo entered into a number of agreements with Kharkivenergoremont-Holding LLC for the repair of strategic facilities. In particular, UAH 3 million for the repair of Zmiivska TPP and UAH 4.42 million for the repair of a turbine at Odesa TPP.
Particular attention is drawn to the tender at Odesa TPP, where Kharkivenergoremont-Holding was the only participant, which once again raises serious doubts about the transparency of the contractor selection and possible collusion with Centrenergo officials.
By the way, the co-owner of the company, Lyudmyla Kuzyara, is the wife of Serhiy Kuzyara, an ally of Viktor Medvedchuk. According to law enforcement, in 2014-2015, Kuzyara organized a scheme to supply coal from the occupied territories of the L/DNR to Ukraine. The anthracite was sold under the guise of imports from third countries, and the proceeds were transferred to Medvedchuk through affiliated companies and cryptocurrency exchanges. Part of this money was used to finance terrorist organizations.
Based on our materials, the Kyiv City Police Department is already conducting a pre-trial investigation in case No. 12025100000000518 under Part 1 of Art. 364 of the Criminal Code of Ukraine. We are waiting for the results.
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