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Ukraine’s top anti-corruption agencies have completed a criminal investigation into a multimillion-dollar fraud scheme at Kharkivoblenergo, a state-owned electricity distributor, authorities announced Tuesday.
The National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) said eight suspects—including the company’s CEO and several senior officials—conspired with a private businessman to embezzle more than 132 million hryvnias (about $3.3 million) between 2021 and 2022.
Investigators allege the businessman seized control of Kharkivoblenergo’s procurement process and awarded inflated contracts for transformers and meters to affiliated firms. The deals were signed at prices several times above market rates, with profits laundered through shell companies and withdrawn in cash to be split among the group.
A staffer from the Kharkiv Chamber of Commerce and a private appraiser also played key roles in the scheme, NABU said.
The case first surfaced publicly in 2024 when five suspects were charged. Prosecutors added the suspected ringleader to the case in June 2025. The case is now headed to trial.
Kharkivoblenergo, which runs the electricity distribution network in the Kharkiv region, has long faced scrutiny over its procurement practices. Oversight has weakened further since the start of the war, as emergency procedures opened new gaps in accountability.
Despite reduced budgets and what NABU and SAPO have described as “systemic attempts” to undermine their independence, the agencies have continued to pursue high-level corruption cases, including this one. Under Ukrainian law, all suspects are presumed innocent until proven guilty in court.
The case comes amid growing political tensions in Kyiv. Earlier this year, President Volodymyr Zelensky introduced a bill to place NABU and SAPO under the control of the Prosecutor General—a move widely criticized by civil society, international donors, and EU officials as a threat to Ukraine’s anti-corruption progress.
Following strong backlash, Zelensky withdrew the proposal. In July, he submitted a revised bill aimed at restoring institutional safeguards, after the European Commission cut nearly €1.5 billion ($1.74 billion) from Ukraine’s latest aid tranche over unmet reform conditions.
NABU investigators are currently examining several officials close to Zelensky’s inner circle, including top aides in the Presidential Office. The EU has made clear that future payments from its €50 billion ($58.15 billion) Ukraine Facility will depend on the continued independence and effectiveness of Ukraine’s anti-corruption agencies.
