"Mindichgate": EU expects transparency and reforms from Ukraine - Politico
The EU seeks assurances from Ukraine regarding the use of future financial support following the exposure of a corruption scheme linked to the energy sector.
According to Censor.NET, this was reported by Politico.
Corruption scandal divides Kyiv's European partners
For some partners, the investigation is a positive sign of the independence of Ukrainian anti-corruption agencies. Others expect concrete commitments to prevent similar incidents in the future. EU officials are calling for greater transparency in spending and reform of the system.
"The endemic corruption" uncovered during the investigation is "disgusting" and "will not help" the country's reputation among international partners," said one EU official, speaking on condition of anonymity.
This will mean that the European Commission will undoubtedly be forced to review its approach to allocating funds to Kyiv's energy sector, the official said, adding that in the future, "Ukraine will be forced to pay more attention and ensure greater transparency in the spending of funds."
"We expect Ukraine to continue its anti-corruption measures and reforms," German Chancellor Friedrich Merz said on Thursday, November 13, after a telephone conversation with Zelenskyy.
The president "must reassure everyone," added the EU government representative, "most likely with an anti-corruption plan."
The publication notes that the scandal occurred at a sensitive moment for Ukraine. Next year, the country risks facing a budget crisis of €41 billion, and EU countries are currently unable to agree on a €140 billion loan for Kyiv from frozen Russian assets.
On Wednesday, November 12, Zelensky stated that "there must be maximum transparency in all processes in the energy sector," adding that he supports "every investigation conducted by law enforcement and anti-corruption agencies."
Kyiv's allies confirm their support
Despite the scandal in the energy sector, which is considered the worst for President Zelenskyy since 2019, Ukraine's allies do not plan to reduce aid. On Thursday, the European Union confirmed the allocation of €6 billion to support Ukraine. Estonia provided an additional €150,000 for the energy sector, and Germany is considering allocating €3 billion next year.
At the G7 summit and the EU-Ukraine investment conference, allies sought to demonstrate solidarity.
"It is painful to see how corruption affects the energy sector, especially with winter approaching and Russia's attacks continuing. But we stand firmly on the side of the Ukrainian people—our support will not stop," emphasized Lithuanian Energy Minister Žygimantas Vaičiūnas.
Experts warn that ending support for the energy sector will have "dire" consequences ahead of winter. In recent months, Moscow has intensified its attacks on Ukraine's energy infrastructure, particularly gas production facilities. Ukraine has received €500 million from the EBRD to support gas purchases in emergencies.
Supporters of Ukraine in the EU fear that loud criticism could fuel the narratives of Kyiv's opponents. Hungarian Prime Minister Viktor Orbán has spoken of a "mafia network with ties to President Zelenskyy." EU diplomats note that Ukraine's opponents will use such scandals to discredit the country and slow down its accession to the Union.
According to a former Ukrainian official, Brussels will likely double down on making energy funding conditional on reforms, but the general taboo on publicly criticizing Ukraine will remain.
A chance to cleanse yourself and rebuild stronger
Supporters of Ukraine say the investigation is limited to one company and argue that international partners should not punish the energy sector because of it. But some allies still want to see more reforms.
Until now, the investigation has focused mainly on Energoatom, with seven officials accused of manipulating contracts in order to receive kickbacks.
"The management of Energoatom will be purged and rebooted," Zelensky said on Wednesday.
In total, since 2022, the European Commission has provided Kyiv with "more than €3 billion" in energy assistance, according to a representative of the EU executive body.
Approximately one-tenth of this amount was channelled through the Energy Community, an international organisation that supplies Ukraine with energy equipment, such as transformers, at Kyiv's request. In total, the organisation "mobilised" €1.5 billion from Ukraine's Western partners.
The director of the Energy Community Secretariat, Artur Lorkowski, called the scandal "unfortunate." But at the Vienna-based organization, "the risk of corruption is minimal," he added, because the community retains "full control" over the coordination, procurement, and monitoring of equipment after its arrival, and procurement is handled by an independent agency in the UK.
Meanwhile, the European Bank for Reconstruction and Development (EBRD) has allocated €3.1 billion to support Ukraine's energy sector, which is about one-third of the total support since 2022, a bank representative said.
"Very strict procurement requirements," including open tenders and direct payments to contractors, they say, give the bank a high level of confidence about future assistance.
However, others argue that there is still a long way to go to eliminate corruption in this sector.
Going forward, Ukraine must make its energy sector more transparent and reassure its European partners that their money will be spent wisely, two EU diplomats and two European government officials said.
"This is also a chance to clean up and rebuild stronger," Minister Vaičiūnas said.
