Ukraine’s state nuclear power company Energoatom is at the centre of an anti-corruption investigation into an alleged kickback scheme linked to public tenders worth around 75 billion hryvnias (€1.7 billion).
The case, codenamed “Operation Midas”, is being pursued by the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO).
According to NABU, investigators have uncovered what they describe as a high-level criminal organisation involving current and former officials and business figures, which allegedly sought to exert influence over strategic state-owned enterprises, including Energoatom. The core of the scheme, NABU says, was the systematic extraction of illegal payments from contractors amounting to 10–15% of contract values.
An analysis by Ukrainian outlet Ekonomichna Pravda of data from the Prozorro public procurement system shows that from the start of Russia’s full-scale invasion in 2022 to November 2025, Energoatom itself concluded around 1,300 contracts worth 37.4 billion hryvnias. Including procurement conducted by its individual nuclear power plants, the total rises to more than 11,000 purchases with a combined value of about 75 billion hryvnias. In addition, there is a large contract from 2023 with US-based Westinghouse Electric, worth 16.4 billion hryvnias for nuclear installations, which remains unrealised.
These tenders were formally conducted within the legal framework: winners were selected through Prozorro auctions and contracts signed. However, media investigations and NABU’s case material suggest that, in many instances, real competition was limited or absent. Insiders are alleged to have known in advance which “friendly” suppliers would win particular tenders, while outside companies were discouraged from participating or screened out at the qualification stage.
The period under scrutiny coincides with a sharp rise in revenues for Energoatom. In June 2024, the household electricity tariff was increased by 64%, to 4.32 hryvnias per kWh. Government estimates indicated that this would generate around 80 billion hryvnias in additional annual income, with Energoatom a major beneficiary under Ukraine’s public service obligation mechanism. While the company publicly denied that it was profiting from the tariff change, procurement volumes increased significantly from mid-2024 onwards.
The spending covered a wide range of goods and services. The largest category was construction works and current repairs, amounting to roughly 16 billion hryvnias. Laboratory, optical and high-precision equipment accounted for about 7.8 billion, industrial machinery for nearly 7 billion, and electrical equipment and materials for more than 6 billion. Other sizable items included chemicals, transport and logistics services, architectural and engineering services, and software and IT systems.
On the supplier side, a relatively small group of companies captured a significant share of the tenders. The largest contractor, SNVO “Impuls”, received contracts worth about 5.6 billion hryvnias, followed by Zakhidelektromontazh (4.48 billion), Yuzhenergobud (3.93 billion), and several major Ukrainian producers of electrical and control equipment. Foreign partners such as Cameco Corporation, Westinghouse Electric Sweden AB, ŠKODA JS and various EU-based engineering firms also feature among the top recipients. Their presence in the procurement data does not, in itself, indicate any involvement in unlawful activity.
According to NABU, the alleged scheme relied on two main levers: the threat of blocking payments and the use of extended payment terms in contracts. In what participants reportedly called the “Shlagbaum” (“barrier”) mechanism, Energoatom contractors were told that payments for delivered goods and services could be delayed or withheld entirely unless they agreed to kickbacks.
This leverage was strengthened in August 2024, when the Ministry for Strategic Industries issued Order No. 95, adding Energoatom to a list of debtors whose enforcement proceedings were suspended for the duration of martial law. This meant that creditors could not compel payment through enforcement officers, giving Energoatom management broad discretion over which suppliers were paid, and when. Journalistic investigations allege that this discretion was used to prioritise “preferred” contractors.
At the same time, Energoatom and its subsidiaries increasingly introduced long payment deferrals into tender conditions. From 2023, a 180-day post-payment clause became widespread, and by 2025 around 80% of the company’s procurements reportedly carried payment delays of six months or more. As a result, the average payment period in 2024 reached about 150 days, compared with around 40 working days before the full-scale war. By contrast, the average payment term at grid operator Ukrenergo is about 15 days, in line with other large state customers.
Such conditions are likely to deter smaller or more risk-averse suppliers, leaving the field to firms willing or able to accept both the financial exposure and the alleged informal arrangements. NABU estimates that the losses to the state from the activities of the group under investigation exceed 100 million US dollars, and notes that this figure reflects only the transactions documented so far.
The Ukrainian government has reacted by announcing audits and signalling support for the anti-corruption bodies. Prime Minister Yulia Svyrydenko has said the Cabinet expects the results of investigative and audit work “in the shortest possible time” and will pass materials to law enforcement agencies. The government has also moved to replace Energoatom’s supervisory board.
For Kyiv’s international partners, the investigation comes at a sensitive moment. Energoatom is critical to Ukraine’s wartime electricity supply, future reconstruction and prospective electricity exports to the European Union. The outcome of Operation Midas, and any subsequent prosecutions, will be seen as a test of Ukraine’s ability to tackle high-level corruption while the country is at war.
Ukraine energy probe triggers fresh scrutiny of anti-corruption safeguards
