- Government also instructed defense minister to reset supervisory boards at defense sector enterprises, she says

ISTANBUL

Ukraine announced Wednesday that a substantial portion of the membership of the supervisory boards of several state energy companies will have their powers terminated amid a $100 million corruption scandal in the country's energy sector.

Prime Minister Yulia Svyrydenko said in a statement on Telegram that the Ukrainian government initiated the “immediate termination” of the powers, including at the country’s gas transmission system operator.

“The Cabinet of Ministers approved a transparent procedure for selecting candidates for supervisory boards,” Svyrydenko said, adding the new members of the supervisory boards of companies concerned should be elected by the end of this month.

She also said that the government instructed Defense Minister Denys Shmyhal to reset the supervisory boards at defense sector enterprises, noting she expects regular reports on the issue.

“Rebooting supervisory boards is an important step, as it is the members of the supervisory boards who are responsible for strategic management and control of the company's internal processes,” she added.

Svyrydenko’s remarks came hours after President Volodymyr Zelenskyy said he spoke to the prime minister in a meeting about “personnel overhaul in the energy sector.”

“It is through supervisory boards that management and oversight of internal processes in companies are carried out, and this must be ensured one hundred percent,” Zelenskyy said in a statement on the US social media company X’s platform.

“I also instructed the Prime Minister to inform Ukraine’s key partners about the measures being taken by the Cabinet of Ministers to guarantee trust in Ukraine and in Ukrainian institutions,” he added.

Last month, Ukraine's anti-corruption agencies uncovered a large-scale corruption scheme in the energy sector that involved siphoning off at least $100 million, particularly involving state-owned nuclear energy provider Energoatom, which has led to high-profile resignations including the energy minister and chief of staff to Zelenskyy.

A crackdown on corruption is critical if Ukraine hopes to advance its application to join the 27-member European Union, which formally opened accession negotiations with Kyiv in June 2024.

Critics say Kyiv has long suffered from widespread corruption, and the over three-and-a-half-year Russia-Ukraine war is said to have overshadowed efforts to stamp out graft.