A New York Times investigation has concluded that the Ukrainian government under President Volodymyr Zelensky spent the past four years “systematically” undermining oversight of state-owned companies and weapons procurement.
Investigators say this breakdown allowed corruption to thrive even as Western governments poured tens of billions of dollars into the country.
According to the report, outside experts from the U.S. and European Union were sidelined from supervisory boards meant to monitor spending, vet executives, and prevent fraud.
These boards, created under earlier reform agreements with Kyiv, were designed to guard against the kind of large-scale graft that has long plagued Ukraine’s state enterprises.
The Times found that Zelensky’s administration “stacked boards with loyalists, left seats empty, or stalled them from being set up at all.”
In some cases, government officials allegedly rewrote company charters to reduce independent oversight and consolidate control, enabling “hundreds of millions of dollars to be spent without outsiders poking around.”
Corruption Scandal Engulfs Zelensky’s Inner Circle
The exposé comes as Ukraine faces a major corruption scandal involving close associates of Zelensky.
Anti-corruption authorities have accused members of the president’s inner circle of embezzling roughly $100 million from Energoatom, the state-owned nuclear power operator.
Zelensky’s administration has attempted to shift blame onto Energoatom’s supervisory board for failing to catch the scheme.
But according to the Times, “it was Mr. Zelensky’s government itself that neutered Energoatom’s supervisory board,” limiting its ability to intervene.
The investigation found a similar pattern at Ukrenergo, the state electricity provider, and at Ukraine’s Defense Procurement Agency, both key institutions during wartime.
European Officials Acknowledge Corruption But Send Billions Anyway
Despite long-standing concerns about corruption, European governments have continued funding Ukraine with few conditions.
The Times quoted Christian Syse, Norway’s special envoy to Ukraine, who acknowledged the governance risks but justified ongoing aid.
“We do care about good governance, but we have to accept that risk,” Syse said.
“Because it’s war,” he continued.
“Because it’s in our own interest to help Ukraine financially.
“Because Ukraine is defending Europe from Russian attacks.”
Zelensky’s Top Aides Flee Amid Raids
The fallout inside Kyiv has been significant.
Zelensky’s powerful chief of staff, Andriy Yermak, resigned late last month amid the Energoatom scandal and hours after Ukrainian authorities raided his home.
Ukrainian media reported that Yermak, who holds Israeli citizenship, fled to Israel shortly before the raid.
Yermak has long been viewed as one of the most influential figures in Ukraine’s government, with a hand in political, military, and foreign-policy decisions.
Businessman Timur Mindich, a longtime associate of Zelensky and co-founder of the entertainment company Kvartal 95, is accused of leading the embezzlement scheme.
Mindich also fled to Israel before police executed a search of his luxury apartment, according to Ukraine’s National Anti-Corruption Bureau.
A former Ukrainian government official told Fox News that “Timur had an apartment with golden toilets that was in the same building as Zelensky’s,” underscoring the level of wealth investigators believe was amassed through the alleged scheme.
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