According to investigators, the scheme involves businessman Timur Mindich, a longtime friend of Zelensky and co-owner of the ‘Kvartal 95’ studio, founded by the president before he entered politics. Interestingly, Mindich left the country just a few days before the accusations became public.
According to investigators, the scheme involved Justice Minister Herman Galushchenko, who received "personal benefits," and Energy Minister Svitlana Grinchuk. The president was outraged that they continued corrupt practices in wartime, which he deemed unacceptable.
Ukrainian Prime Minister Yulia Svyrydenko confirmed that the ministers submitted resignation letters, but the parliament has not yet approved their departure.
The scandal has sparked widespread public resonance against the backdrop of ongoing power and heating outages due to attacks by the Russian army on the energy system. Zelensky has already faced criticism both domestically and in Brussels for attempts to limit the independence of anti-corruption bodies.
As reported by the BBC, a major corruption scandal involving the Ukrainian energy sector involves several former and current government members, as well as Timur Mindich, a close friend of President Volodymyr Zelensky.
This escalating scandal could have unpredictable consequences not only for Ukraine's politics but for society as a whole.
This week, Ukraine's anti-corruption bodies reported the uncovering of a "high-level criminal organization" operating in the energy sector. According to law enforcement, the volume of illegal profits obtained by the criminals amounts to tens of millions of dollars.
The National Anti-Corruption Bureau (NABU) reported that during the investigation, "four high-ranking members" of the Ukrainian government were "recorded" in "various situations."
According to the investigation, the head of the organized crime group is businessman Timur Mindich, known for his close ties to President Volodymyr Zelensky.
Additionally, the prosecutor indicated that Mindich may also have been involved in illegal activities in the defense industry, hinting at his influence over former Defense Minister and current Secretary of the National Security and Defense Council of Ukraine Rustem Umerov.
The reaction of the Ukrainian authorities to the investigation, which NABU has made public for the third day, appears restrained.
Operation ‘Midas’ and the ‘Barrier’ Scheme
The scheme announced on November 10 involves the activities of ‘Energoatom’, the operator of all nuclear power plants in Ukraine, which is fully state-owned.
The significance of this enterprise for Ukraine is immense: nuclear energy accounts for more than half (up to 70% in cold months) of the country's electricity needs. The annual revenue of ‘Energoatom’ exceeds 200 billion hryvnias (about 4.76 billion dollars).
During a session of the High Anti-Corruption Court on November 11, the prosecutor stated that at the beginning of the year Timur Mindich, "taking advantage of the situation in Ukraine under martial law, friendly relations with the president, and connections with current and former officials... decided to illegally enrich himself."
According to the prosecutor's office, he and his acquaintance Alexander Tsukerman created a system that allowed them to receive "kickbacks" from most of the purchases made by ‘Energoatom’.
According to information from anti-corruption bodies, the scheme functioned as follows.
A contractor for ‘Energoatom’ performed work or supplied goods for Ukrainian nuclear power plants and was supposed to receive payment. However, in reality, money was allocated only after the perpetrators received a "kickback" from the contractor amounting to 10-15% of the contract sum. Sometimes payments were made to accounts of companies controlled by members of the criminal organization or to accounts of other companies awaiting payment for work done for ‘Energoatom’.
Refusal to pay the "kickback" left contractors with virtually no chance — in that case, they simply would not receive money for the work done from ‘Energoatom’, as until recently this company was on the list of organizations from which debts could not be collected in wartime.
“You can go to court, and it will say: there is a moratorium. Whether you did something or not — you cannot collect funds from ‘Energoatom’. The criminals exploited this situation to pressure suppliers. Some of them left the market and ceased operations,” explained NABU detective Alexander Abakumov on the YouTube channel ‘Ukrainian Truth’.
This scheme was dubbed the ‘Barrier’. "In fact, the management of the strategic enterprise... was carried out not by official officials, but by outsiders without formal authority, who took on the role of ‘watchers’," stated NABU's press service.
The legalization of funds obtained in this manner was handled by a separate office of the criminal organization located on Volodymyrska Street in central Kyiv, law enforcement claims.
An interesting fact: this premises belongs to the family of Andrei Derkach, son of former SBU head Leonid Derkach, who historically had interests in the field of Ukraine's nuclear energy. After the start of the full-scale war, he fled to Russia. In 2023, Derkach was accused of treason, and Volodymyr Zelensky stripped him of Ukrainian citizenship. Last year, Derkach became a senator in Russia, representing the Astrakhan region.
NABU claims that the laundered funds were cashed outside Ukraine, including in Russia.
“For providing services to non-members of the criminal organization, the office received payment in the form of percentages from the amounts processed. In total, about 100 million US dollars passed through the so-called ‘laundry’,” the agency reported.
‘Carlson’, ‘Reshik’, ‘Tsukerman’, and ‘Che Guevara’
According to NABU, the investigation of the criminal group, dubbed Operation ‘Midas’, lasted 15 months, during which detectives obtained numerous intercepted conversations of the case participants.
Fragments of these recordings began to be published by NABU in the public domain on November 10. On the same day, it became known that about 70 searches were conducted, including at the office of ‘Energoatom’ and the home of former Energy Minister and now Justice Minister Herman Galushchenko. The publication of recordings continued on November 11 and, apparently, will continue.
In the released recordings, people using pseudonyms for concealment occasionally mention their real names and discuss various aspects of their criminal activities.
In one fragment, "Rocket" (according to NABU, former advisor to the Minister of Energy Igor Mironyuk) and "Tenor" (according to NABU, director of ‘Energoatom’ for security Dmitry Basov), responsible for collecting funds from contractors within the ‘Barrier’ scheme, discuss methods of pressure on uncompliant contractors. They hint that if a company refuses to pay the "kickback," it should be excluded from the list of ‘Energoatom’ contractors, and then the employees "will be taken into the army."
In another fragment, they discuss the possibility of increasing the size of the "kickback" in light of a potential change in leadership at the Ministry of Energy and ‘Energoatom’.
In a third fragment, former Deputy Prime Minister of Ukraine Alexey Chernyshev (“Che Guevara”) discusses with Tsukerman (“Sugar Man”) how to withdraw cash from the shadow office.
In the fourth fragment, an accountant of the shadow office nicknamed Reshik complains that carrying a box with 1.6 million dollars in cash down the street is "not the most pleasant task."
NABU detective Alexander Abakumov reported on the air of ‘Ukrainian Truth’ that "during the investigation of this criminal case, we managed to document the involvement of four ministers."
On the evening of November 11, NABU announced suspicion of illegal enrichment against former Deputy Prime Minister Chernyshev: detectives documented the transfer to him and his trusted person (according to the recordings, his wife) of 1.2 million US dollars and almost 100 thousand euros. Chernyshev is also a figure in another NABU case related to corruption in construction. The media describe him as a close friend of President Volodymyr Zelensky.
However, perhaps the most resonant detail of the investigation is the identity of the leader of the criminal organization, a well-known businessman referred to in the wiretaps as "Carlson."
“He controlled the operation of the so-called ‘laundry’, where the funds obtained through criminal means were laundered. From an apartment on the upper floors of a building on Hrushevskoho Street in Kyiv, ‘Carlson’ determined who and how much to give or transfer in cash, as well as coordinated influence over officials of central government bodies to resolve issues in his interests — especially in the energy and defense sectors,” stated NABU in a statement on November 11.
On Tuesday evening, prosecutors from the Specialized Anti-Corruption Prosecutor's Office confirmed that behind the pseudonym "Carlson" is 46-year-old Timur Mindich, who is referred to as a business partner and friend of Volodymyr Zelensky. This circumstance gives the ‘Barrier’ case a completely new significance.
“To make everything luxurious”: who is Timur Mindich
Timur Mindich, who not long ago was a little-known businessman from Dnipro, has become one of the most influential people in Ukraine over the past year or two.
Some time ago, during the tenure of former Prime Minister Denys Shmyhal, Mindich was even referred to as "Kabmindich" — his influence on personnel policy was so strong.
Little is known about his childhood and youth: he was born in 1979 in Dnipropetrovsk to parents Mikhail and Stella Mindich, who became entrepreneurs.
Mindich is the son-in-law of the late Alla Verber, a well-known Russian entrepreneur in the fashion industry. She described him as a person who loves people and celebrations and strives for luxury.
The wedding of Timur Mindich and Alla Verber's daughter, Ekaterina, took place in 2010 in Israel, near the Western Wall. The event was attended by 500 guests, and the celebration lasted four days.
Previously, Mindich dated the daughter of oligarch Igor Kolomoisky, Anzhelika. "He was once my daughter's fiancé, but they broke up," Kolomoisky told ‘Ukrainian Truth’ in 2019.
During Kolomoisky's fall from grace, towards the end of Petro Poroshenko's presidency, Mindich visited him several times in Israel and Switzerland.
In the same interview, Kolomoisky referred to Mindich as "my business partner in some minor projects" and claimed that Mindich introduced him to Volodymyr Zelensky.
Mindich's Main Asset
Having close ties with Volodymyr Zelensky is perhaps Timur Mindich's key asset. He is a co-owner of the ‘Kvartal 95’ studio and held the position of commercial director there until Zelensky became president.
Journalists often cite examples of their closeness. For instance, during the 2019 presidential campaign, Zelensky, responding to accusations of drug use, arrived at a clinic to take drug tests in a car registered to Mindich. In January 2021, it was at Mindich's apartment that Zelensky celebrated his birthday: until the start of the full-scale war, they lived in the same building on Hrushevskoho Street in Kyiv.
Mindich's friend is Andriy Yermak, one of the most influential people in Ukraine and head of the president's office.
“We are engaged in film production; he is involved. Therefore, we have a very friendly relationship. They were, are, and I hope will be,” Mindich told journalists from the ‘Schemes’ project when he was met outside the president's office while discussing a bill that could prevent Igor Kolomoisky from regaining control over the nationalized PrivatBank.
Perhaps the most mysterious story about Mindich's business interests concerns the defense industry of Ukraine — and this prompts a re-evaluation of the prosecutor's statement that "Carlson" was engaged in illegal enrichment in this area as well.
In August of this year, The Kyiv Independent reported that NABU is investigating the company Fire Point for possible price inflation on drones and its ability to fulfill orders from the Ministry of Defense.
Fire Point produces not only drones but also the "Flamingo" cruise missiles, which Zelensky called one of Ukraine's most successful developments. Despite a lack of significant experience in weapon manufacturing, the company received a large order, which raised mixed evaluations from experts.
Journalists from The Kyiv Independent claimed that the real owner of Fire Point is Timur Mindich.
However, soon NABU stated that it was not conducting an investigation regarding the "Flamingo" missile, and Fire Point's chief designer Denis Shteylerman told ZN.ua in an interview that Mindich did indeed want to become a shareholder of the company, but "nothing came of it, as we refused him."
According to Shteylerman, later he communicated with Mindich "only because we are Jews, but not for the company's business at all." Mindich himself did not comment on this situation.
What’s Next?
The first comments from Ukrainian authorities regarding the ‘Barrier’ scheme appear quite restrained.
On November 10, ‘Energoatom’ stated its readiness to cooperate with law enforcement during the investigation.
Prime Minister Yulia Svyrydenko announced that the government expects results from the investigation and is ready to support anti-corruption bodies. On Wednesday morning, she confirmed the decision to suspend Galushchenko from his position.
Initially, the president's office stated that they did not see the need for separate comments on the case, but in his evening address, Volodymyr Zelensky devoted more time to this issue.
“It is necessary to take any effective measures against corruption. There needs to be inevitability of punishment. ‘Energoatom’ provides a large part of energy generation in the country. Cleanliness in the company is our priority. […] Everyone involved in the schemes must receive a clear procedural response. Sentences must be issued. Officials must work together with NABU and law enforcement to achieve results,” Zelensky stated.
The president did not mention names, including Mindich and Chernyshev, who are considered close to him. However, this can be explained by the fact that on the first day of the scandal, their names were only mentioned in sources, not by law enforcement. On November 11, when the figures in the ‘Barrier’ case became known, Zelensky did not comment on the situation — he spent that day in Kherson, marking the third anniversary of liberation from Russian occupation.
Meanwhile, Yulia Svyrydenko's government decided to prematurely terminate the powers of the supervisory board of ‘Energoatom’ and conduct an urgent audit of the company, the results of which will be submitted to law enforcement and anti-corruption bodies.
Nevertheless, it is unlikely that the authorities will limit themselves to just formal measures and promises to "wait for the verdict" in response to the growing scandal.
Firstly, it is clear that NABU has not yet said its last word. At the end of one of the recordings of intercepted conversations, detective Alexander Abakumov uttered a promising phrase: “To be continued.”
Given that each new part of the recordings from NABU reveals even higher-ranking figures, one can expect the emergence of recordings involving high-profile representatives of the current authorities in the near future.
For NABU itself, this case carries high stakes. Sources from many media outlets indicate that the attempt to limit the independence of anti-corruption bodies in July was due to the fact that in their investigations they had come close to figures close to Volodymyr Zelensky. At that time, the names of Chernyshev and Mindich were particularly prominent.
Anti-corruption activists assert that the ‘Barrier’ case became possible thanks to "cardboard" protests that forced the authorities to retreat.
A telling moment: NABU claims that in the final phase of Operation ‘Midas’, all bureau detectives participated. It is possible that this case will become the most significant in NABU's history, and its outcome will determine the fate of this body.
What Will Zelensky and Western Countries Say?
Secondly, the current situation requires President Zelensky to take a clearer position. The prosecutor's words that close relations with the president were one of the factors contributing to Timur Mindich's illegal activities deprive Zelensky of the opportunity to maintain a neutral stance.
Interestingly, the information about Rustem Umerov mentioned by the prosecutor could open new horizons in this scandal, especially if it turns out that the president's friend is involved not only in energy but also in the defense sector, which could become a real catastrophe for the authorities and the president.
While experts speculate whether this will lead to the dismissal or at least suspension of the figures in the scandal from their positions, pessimistic forecasts are appearing online that the response from the president's office may be a new attack on anti-corruption institutions.
Thirdly, attention should be paid to the lack of a clear reaction from Ukraine's Western partners to the ongoing events. Their intervention became an important factor that allowed the situation regarding the liquidation of NABU and SAP's independence to be "rolled back" in the summer of this year. At present, they are awaiting actions from the Ukrainian authorities, and if their actions are perceived as an attempt to protect those suspected in a major corruption scheme, the reaction will not be long in coming and may even be harsher than before.
Finally, the ‘Barrier’ scandal unfolds against the backdrop of intense attacks by the Russian army on Ukrainian energy facilities. Residents of Kyiv are currently facing hours-long power outages, and experts predict the most difficult winter in Ukraine's history.
In this situation, reports that some criminals — not strangers to the president — did everything possible to steal money from the energy sector and then managed to leave the country (according to sources, Mindich and Tsukerman managed to do so) could provoke public discontent and a sharp decline in support for the authorities.
It is possible that the authorities will not be able to divert public attention to other topics or launch a counter-campaign in controlled Telegram channels.
