17.06.2025 Investigations

Shmyhal on the brink: corruption scandals that destroyed the prime minister’s career

Денис Шмигаль: «Ми будемо робити наголос на розвитку військово-промислового комплексу і переробних індустрій» - портал новин LB.ua

The political sidelines are once again talking about the resignation of Prime Minister Denys Shmyhal. MP Yaroslav Zheleznyak claims that Yulia Svyrydenko, the First Deputy Prime Minister, could be his replacement. What was the last straw for the head of the government? We have collected the most high-profile scandals that put an end to Shmyhal’s career and figured out how his actions undermined trust in the government during the war.

From the failure to protect energy facilities to corruption schemes with oligarchs.

Energy catastrophe: failure to protect energy facilities

The Shmyhal government has failed to build the third level of protection for 22 key energy facilities, which threatens the stability of Ukraine’s energy system. The Prime Minister personally stopped funding for the projects, which resulted in contractors not receiving payment and the Ministry of Finance accumulating a debt of over UAH 20 billion. This delay not only weakened the protection of critical infrastructure, but also jeopardized the country’s energy security in times of war.

Why did Shmyhal take this step? The government does not give an answer, but the consequences are felt by all Ukrainians when the power grid is attacked again.

Moreover, recent developments around Energoatom’s procurement have exposed new corruption schemes that are unfolding under the guise of war and the energy crisis. In November 2024, Energoatom announced a tender for the purchase of fire protection materials worth more than UAH 52 million. The winner was ATOMENERGORESURS LLC, a company close to the Ministry of Energy, which was the only bidder. The procurement estimate turned out to be significantly overstated, as confirmed by independent media investigations. Similar schemes have been detected earlier in the procurement of Rivne NPP, which indicates a systematic withdrawal of budget funds through fictitious tenders.

During the tender, a representative of European chemical producers appealed to Energoatom with comments on the inflated cost of materials, but there was no response. This indicates a deliberate disregard for corruption risks.

Shadow of the past: real estate scandals of the Shmyhal family

Back in the 1990s, the Shmyhal family was involved in a scandal over the expansion of their living space in Lviv. Litigation over the matter continued, but the case was eventually quietly hushed up. Although these events took place a long time ago, they cast a shadow over the prime minister’s reputation, especially when it comes to transparency and honesty. Could Shmyhal have avoided such associations? Perhaps, if his actions in office had been impeccable. But this is only the beginning.

Declaration or cover-up? Premium Range Rover is outlawed

One of the most high-profile scandals was the story of the 2025 Range Rover Sport luxury car owned by Kateryna Shmyhal, the Prime Minister’s wife. The car was registered to KADIS UAL, a company established in February 2024. Interestingly, prior to that, Kateryna sold her previous Range Rover for $84,500 (UAH 3.5 million), but Shmyhal’s declaration does not mention these transactions. Moreover, the car was ticketed for speeding near the family’s home in Lviv, which indicates that it was used for personal purposes.

Why is this information important? The absence of information about the car in the declaration is a direct violation of the law. A company that has existed for less than two years suddenly buys an expensive car, and the Prime Minister does not explain the origin of the funds. Shmyhal and his wife avoid commenting, but their silence only makes the situation worse.

In the shadow of the oligarchs: Shmyhal’s ties to Akhmetov

Shmyhal has repeatedly assured that he has no personal ties to Rinat Akhmetov, but the facts say otherwise. The prime minister worked in the oligarch’s structures, and compromising photos only confirm their closeness. Akhmetov’s energy empire, including DTEK and the Yasno brand, systematically siphons off budget funds through manipulation of tenders and monopoly position.

How does it work? DTEK companies, such as Dnipro Energy Services LLC (Yasno), are monopolists in certain regions, which allows them to win tenders of budget organizations without competition. After winning, contracts are signed at low prices, but later additional agreements sharply increase the cost of electricity – up to 4.78 or even 8 UAH per kWh. This scheme is reminiscent of the infamous Rotterdam+ formula, which brought Akhmetov super-profits.

Shmyhal’s role in this process raises questions. His government not only does not fight monopolies, but also creates conditions for their prosperity. The political lobby in the Ministry of Energy, the National Commission for State Regulation of Energy and Utilities, the State Audit Service and the Antimonopoly Committee ensures that DTEK’s work is unhindered. Hundreds of millions of hryvnias end up in the pockets of oligarchs every year, while ordinary Ukrainians pay for it.

Return of the monopoly: how Shmyhal gave Ukraine to YEDAPS

The State Printing Plant “Ukraine” was controlled by the scandalous monopolist of the 2000s, Yednavia, which now operates under the name Industrial Innovation Group, and in Ukraine through its Polly-Service branch. The return of this structure was made possible by the lobbying of an MP close to the President’s Office and the official signature of Shmyhal.

YEDAPS monopolized strategic areas of production at Ukraina by installing its own management. In two years, the company received state contracts worth 2.3 billion hryvnias from this enterprise alone, and this is without taking into account other purchases. Everything happened without competition and transparency. Did Shmyhal know about these schemes? His signature is on the decisions that restored the monopoly, so he is responsible. This scandal emphasizes how state resources become a source of enrichment for close structures.

Water crisis in Mykolaiv: how Shmyhal and Kim are making money out of trouble

For more than a year, residents of Mykolaiv have been without quality drinking water, but this has not stopped officials from turning the crisis into a source of profit. The Mykolaiv Oblast Infrastructure Restoration and Development Service ordered the construction of a water intake from the Southern Bug River and a water main for 7.44 billion hryvnias – without open tenders.

The “winners” include companies with dubious reputations:

  • Ukrtransmost LLC (UAH 2.53 billion) is involved in criminal cases of embezzlement of budget funds.
  • Rostdorstroy LLC (UAH 2.63 billion) is associated with the party of Odesa Mayor Gennadiy Trukhanov.
  • Avtomagistral-Pivden LLC (UAH 320 million) is known for embezzlement on Big Construction projects and has contracts worth UAH 25.3 billion in 2023.

In July 2024, the head of the Mykolaiv Regional Water Authority, Vitalii Kim, promised to optimize the project’s budget to UAH 3 billion, but in September, Shmyhal announced a new amount of UAH 8.8 billion. Why is the cost rising and the water supply for Mykolaiv residents still out of reach? The answer is obvious: the money ends up in the pockets of close companies.

Gas schemes: how Naftogaz became a private business

“Naftogaz, which is supposed to guarantee energy independence, has become a center of corruption schemes. The company buys gas at inflated prices (UAH 33 per cubic meter versus the market price of UAH 14.50) and sells it to its subsidiaries at reduced rates. The difference is deposited on the accounts of affiliated companies, and the losses are covered by the state budget.

Through Prozorro, Naftogaz signs contracts with firms like NGX SERVICE LLC without competition, which allows it to dictate prices. Controlling bodies such as the State Tax Service and the State Audit Service do not conduct inspections, and criminal cases are stalled. As a result, Ukrainians pay the price, as tariffs rise and the company’s debts fall on the budget.

Shmyhal, as head of government, is responsible for inaction in the fight against these schemes. Corruption in the energy sector is not just an economic problem, but a matter of national security.

Conclusion: Is there a chance for justice?

The scandals around Shmyhal are not isolated cases, but a systemic picture. From protecting oligarchs to ignoring the critical needs of citizens, his actions undermine trust in the government. The materials on these violations have already been submitted to the NABU, the SAPO and other law enforcement agencies. Will we be able to bring the perpetrators to justice? It depends on public pressure.

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