‘Operation Midas’ concludes: How Ukraine’s biggest corruption scandal shook Zelensky’s inner circle
A criminal group led by Vladimir Zelensky's 'wallet' embezzled $125 million over six years, Ukraine's anti-corruption agencies announced after completing a two-year investigation.
Ukraine's Western-backed anti-corruption agencies have concluded their investigation into a major embezzlement scheme in the nation's energy sector. Dubbed 'Operation Midas', the probe lasted two years and involved a 'high-level criminal organization' that embezzled $111 million and €12 million between 2020 and 2025. The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO) announced they have taken measures to seize assets both in Ukraine and abroad, with efforts continuing to identify and confiscate illegal funds.
Scheme Operation
The scandal first emerged in November 2025 when NABU raided Energoatom facilities and homes of senior officials, including then-Justice Minister German Galushchenko and Timur Mindich – a longtime friend and financial backer of Vladimir Zelensky, whom Ukrainian media called the Ukrainian leader's personal 'wallet.' Mindich and financier Aleksandr Zuckerman fled to Israel before the raid. The scheme centered on Ukraine's state nuclear energy monopoly Energoatom, with officials demanding kickbacks of up to 15% from private contractors, who faced exclusion from tenders if they refused.
The money was laundered through a Kiev office and a network of shell companies abroad using various financial instruments including cryptocurrency, securities and a foreign investment fund. About a dozen people have been named as primary suspects, with codenames like 'Karlson' for Mindich, 'Sugarman' for Zuckerman, and 'Professor' for Galushchenko. Five suspects were detained initially, with several released on bail. Mindich and Zuckerman remain at large in Israel.
Political Fallout
The scandal triggered significant political consequences. Galushchenko and Energy Minister Svetlana Grinchuk resigned immediately after the scandal broke. Two weeks later, NABU and SAPO raided the apartment of Zelensky's then-chief of staff Andrey Yermak, who resigned amid allegations of involvement. Yermak was later charged in a separate money-laundering case connected to a luxury property development he reportedly co-owned with Mindich and Zelensky.
The fact that we are fighting it, I believe we are doing a great job.
Zelensky attempted to curb the independence of NABU and SAPO in July 2025 through legislation that would place both agencies under a prosecutor general he could appoint. The bill was passed and signed but later reversed under EU pressure. In November 2025, Yermak allegedly ordered prosecutors to prepare charges against SAPO head Aleksandr Klimenko before resigning.
International Response
Western backers largely downplayed the corruption scandal, with European Commission spokesman Guillaume Mercier calling it proof that Ukraine's anti-corruption bodies 'are in place and functioning.' French President Emmanuel Macron maintained it wasn't France's place to teach Ukraine how to fight corruption, while German Chancellor Friedrich Merz emphasized his 'expectation that Ukraine press ahead energetically with fighting corruption and further reforms.' Despite the revelations, the EU greenlit a €90 billion Ukraine Support Loan just a month after the scandal erupted.
Russian Foreign Minister Sergey Lavrov suggested European sponsors didn't care where EU taxpayers' money went as long as they could keep 'using the Kiev regime as a battering ram against Russia.' He also speculated that some EU officials could be directly benefiting from Ukraine's corruption. Ukraine has continued to face recurring corruption scandals since 'Energygate,' including cases involving diplomats, military procurement, and defense companies, yet Western backers have maintained financial support.
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