The possibility of using €140 billion of frozen Russian assets for a reparations loan to Ukraine is a unique opportunity for the state. Especially since the US has ceased military aid following Donald Trump's election. However, legal challenges in using these assets are compounded by concerns over how the money might be utilized amid the backdrop of a new corruption scandal, La Repubblica reports.
On 10 November, EU-backed anti-corruption agencies uncovered a large scheme, "Midas", involving four Ukrainian ministries and the country's top energy company. The case is especially painful to the ordinary Ukrainians, who continue to endure up to 12-hour blackouts following Russian missile attacks.
According to investigators, the perpetrators demanded kickbacks amounting to 10–15% of Energoatom contract values. Contractors had to pay to avoid blocked payments or the loss of supplier status. Timyr Mindich, one of President Volodymyr Zelenskyy's closest associates, oversaw the operation of a so-called “laundromat”, where funds were stolen.
The embezzlement of state funds in the energy sector, exceeding $100 million, has raised significant concerns in Europe.
The "Midas" corruption case under Europe's scrutiny
During the Eurogroup meeting on 12 November, where instruments for financing Ukrainian resistance over the next two years were again discussed, several finance ministers repeatedly referred to this corruption case.
Moreover, the scandal in Ukraine erupted after the release of the latest European Commission report on the EU candidate countries, presented last week. It provides a clear assessment that Ukraine has made limited progress in the fight against corruption.
The report also mentions the temporary suspension in July of the independence of the anti-corruption agencies, which are currently handling the case involving the embezzlement of $100 million in state funds. These institutions, according to the report, report growing pressure from state authorities.
