President Volodymyr Zelensky on Wednesday dismissed Ukraine’s justice and energy ministers on a major corruption scandal of $100 million that rocks the country’s war-battered energy sector.

Investigators allege that a key ally of Zelensky orchestrated a $100 million kickback scheme siphoning funds from state energy projects, sparking public outrage as Ukrainians endure widespread power outages from continued Russian attacks.

Zelensky said Justice Minister German Galushchenko and Energy Minister Svitlana Grynchuk must step down over their alleged involvement.

“The minister of justice and the minister of energy cannot remain in their positions,” Zelensky said in a video address. “It is absolutely unacceptable that there are still corruption schemes in the energy sector while Ukrainians are facing daily outages.”

Galushchenko, who previously served as energy minister, had been suspended earlier this year but has not been formally charged. Grynchuk, who took over the ministry in July, said state nuclear operator Energoatom, at the center of the probe, was cooperating fully with investigators.

Zelensky Ally Implicated:

Prosecutors claim Timur Mindich, a close associate of Zelensky and co-owner of the president’s former production company Kvartal 95, masterminded the scheme. Mindich reportedly fled Ukraine shortly before the allegations were made public on Monday.

Kvartal 95 issued a statement denying any connection between the investigation and the company’s operations. Meanwhile, Prime Minister Denys Shmyhal announced sanctions against Mindich and businessman Oleksandr Tsukerman, who has also been charged in the case.

Political and Reform Pressures Mount:

The scandal poses one of the biggest challenges yet for Zelensky, nearly four years into Russia’s full-scale invasion. It also tests his government’s pledge to eradicate corruption  a key condition for Ukraine’s European Union membership bid.

The controversy comes amid growing criticism that the presidency is using the judiciary to intimidate opponents.

Last month’s arrest of Volodymyr Kudrytsky, former head of national grid operator Ukrenergo, on embezzlement charges, has further fueled such accusations. Kudrytsky, now on bail, claims the case is politically motivated and retribution for his criticism of Ukraine’s energy defense strategy.

“It’s purely political. It couldn’t happen without the involvement of the presidential office,” he said. “I am being lined up as a scapegoat.”

Business ombudsman Roman Waschuk questioned the strength of the evidence, warning against “targeting people for simply performing their normal corporate functions.” Opposition lawmaker Inna Sovsun accused the government of weaponizing criminal investigations to silence dissent.

The unfolding scandal underscores the delicate balance Zelensky faces  centralizing wartime authority while maintaining democratic reforms crucial to Ukraine’s Western aspirations.