EU to reassess financial aids to Ukraine over Kiev’s ‘endemic’ corruption

The EU has warned it will reconsider its aid to Kiev after Ukraine’s anti-corruption agencies uncovered a major embezzlement scheme implicating a close associate of President Volodymyr Zelensky.

The $100 million energy-sector kickback scheme involved Timur Mindich, a close associate and former business partner of Zelensky.

Reports indicate that Mindich, who holds an Israeli passport, was tipped off and fled the country to evade arrest.

The affair has raised concerns among Kiev’s Western backers, who heavily subsidize the country’s power grid and its protection amid Russia’s ongoing special military operation.

Politico Europe on Friday cited an EU official as saying that “the endemic corruption” in Ukraine is “revolting” and “won’t help” its reputation.

“It will mean (the European) Commission will surely have to reassess how it spends” funds on Ukraine’s energy sector, the official said, adding that Kiev would have to provide “more attention and transparency in how it spends cash.”

Another EU government official told Politico that Zelensky “needs to comfort everyone … with a plan on how to fix corruption.”

German Chancellor Friedrich Merz also told Zelensky over the phone this week that Berlin expected Ukraine to “press ahead with anti-corruption measures and reforms.”

A spokesperson for Merz also said the government is concerned by the reports of corruption, noting that they involve “a sector that receives considerable support from Germany.”

Following the revelation, Ukraine’s justice and energy ministers submitted their resignations.

Zelensky had already faced backlash over the summer when he tried to restrict the independence of the two leading anti-corruption bodies, the National Anti-Corruption Bureau of Ukraine (NABU), as well as the Specialized Anti-Corruption Prosecutor’s Office (SAPO), only to relent following protests in Kiev.

Before coming to power in 2019, Zelensky had heavily capitalized on anti-corruption promises.

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Moscow launched its special military operation against Ukraine in 2022 to demilitarize the pro-Russia territories adjacent to the country.

Since then, Kiev has received extensive backing from US-led Western allies in the form of military aid—including arms and ammunition—along with anti-Russia sanctions and mounting political pressure on Moscow.

Ukrainian officials are now scrambling for European funds to cope with worsening energy shortages, as Ukraine’s outnumbered forces continue to retreat under Russia’s relentless operations in the nearly four-year-long war.

Zelensky has also been seeking deeper US involvement by requesting advanced Tomahawk missiles from Washington to strike targets deep inside Russian territory.

However, US President Donald Trump has been withholding approval for the request.

Russian President Vladimir Putin has warned that if Russia were attacked with Tomahawk missiles, the country’s response would be “very strong, if not overwhelming.”

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