Ukraine Rocked by Massive Energy Corruption Scandal.

This week, Ukrainian politics was hit by a massive corruption scandal involving Energoatom, the state-run nuclear power company, and allegedly $100 million worth of bribes. Corruption in Ukraine is still endemic. According to a New York Times report, those involved in the scheme demanded kickbacks of 10 to 15 percent. Investigators of the National Anti-Corruption Bureau (NABU) discovered several of the kickbacks were related to building protective covering for nuclear power stations that Russia has targeted during the war. At the center of the scandal is Ukrainian businessman Timur Mindich, who co-owned a TV company founded by Zelenskyy. On top of that, several ministers, including a former energy minister and a former deputy prime minister, may be involved. This could spell serious trouble for Zelenskyy, with some opposition MPs calling for the government to fall.

Protests Erupt Over Zelensky’s Corruption Moves.

Earlier this week in Kyiv, Protests erupted over President Zelensky’s move to strip Ukraine’s national anti-corruption bodies of their independence. According to a report in the BBC, Zelensky proposed a bill that would grant government control of the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP). Zelensky’s rationale for taking this course of action was that he was concerned about possible Russian influence on the two organizations. As a result of this announcement, mass protests began in Kyiv due to widespread frustration within Ukrainian society over the rampant corruption that has plagued the country for years. According to another report by the BBC published yesterday, Zelensky realized the error of his ways and resubmitted an amendment to the bill to reinstate their independence. While fears of Russian influence are always a concern in Ukraine, this looks like a rare misstep from Zelensky, who has been widely praised for his actions during the war.

Japan and Ukraine Reach Anti-Corruption Pact.

Last week, Ukraine and Japan agreed to an Anti-Corruption pact to improve Ukrainian anti-corruption measures. According to a report in Euromaidan, the Ministry of Justice of Japan will help their Ukrainian counterparts enhance Anti-Corruption policies and bring in more personnel to fight corruption. According to a report in the Japan Times, negotiations for this agreement started in June at the G7 conference in Italy. These reforms could help Japanese companies break into the Ukrainian market. Despite recent strides in combating corruption, Ukraine still has much to do.

Ukraine’s Agriculture Minister Facing Allegations of a Land Grab.

Yesterday, Ukraine’s agriculture minister, Mykola Solsky, agreed to cooperate with a corruption investigation involving the alleged illegal seizure of public land. According to a report in Al Jazeera, the National Anti-Corruption Bureau of Ukraine (NABU) discovered a plot by a serving minister in President Zelenskyy’s cabinet to illegally acquire 7.3 million dollars of state-owned land in Northeastern Ukraine. According to a report in Barron’s NABU, it was alleged that a “criminal group” that may or may not have been led by Solsky attempted to acquire a further 3,300 hectares of land that are valued at $5 million. NABU is also trying to prove Solsky’s involvement by saying he and his co-conspirators attempted to destroy documents that showed that the Ukrainian Government rightfully owned the land. It is unclear what the outcome of this investigation will be, but it is heartening to see Zelenskyy’s government taking steps to clamp down on corruption.

Navalny pronounced dead by Putin’s Regime.

(A disclaimer for this article: I was at an event this morning held by the U.S Institute of Peace (USIP), an international relations think tank here in Washington DC, discussing the future of Russia post Putin).

The Russian prison authorities announced this morning that Alexi Navalny, the prominent critic of President Putin, was found dead in his cell. It has been reported that as of yesterday, Navalny was displaying his usual sense of humor, which is remarkable considering his situation. It has been well-known that Navalny was gravely ill and was being denied proper healthcare by the Russian government. According to a report by the Washington Post, fears for Navalny grew after he was arrested in January 2021 upon returning to Russia after recovering in Germany from an attempt on his life by the use of Novichok, a banned nerve agent. The response to Navalny’s death has been swift, according to a report by the New York Times. Navalny’s wife strode into the conference room where the Munich Security Conference (a well-known gathering of world leaders discussing international security issues) was held. She denounced Putin’s regime, openly reporting those in the audience spellbound. All of this raises the question: why does this matter?

The answer is that it matters a great deal. According to an article in the Post, Navalny was the main figurehead for anti-Putin opposition in Russia and worldwide, leading many protests within the country. However, more importantly, Navalny had a pioneering YouTube channel and organization that focused on the rampant corruption within Putin’s Russia. It is unclear what will happen next; at the event I attended today, several of the panelists stated that it is a fool’s errand to predict what might happen post-Putin and that it is likely that either Putin will have to die or that Ukraine will have to win the war decisively for Putin to be deposed. One can only hope that Navalny’s death, while tragic, can spur a new generation of Russian civil society to take on Putin and that the West will continue to fund Ukraine’s war effort.

TI Corruption Index Shows a Decline in Law and Justice Causes a Rise in Corruption.

On Tuesday, Transparency International (TI) released its annual Corruption Perception Index, which shows how corrupt a country is perceived to be. TI ranks country from 0 to 100; the closer a country is to 0, the more corrupt it is; for example, Somalia was ranked 11 out of 100, meaning that TI views them as the most corrupt country in the world. On the other hand, Denmark was ranked 90 out of 100, meaning they were the least corrupt. According to TI’s website, the biggest threat to stopping corruption is the weakening of law & order worldwide, as there is a general lack of accountability from leaders in both democracies and authoritarian regimes. However, there is some good news: according to a report by the Atlantic Council, Ukraine has increased its score from 33 to 36 in the past year, which TI rates as one of the most considerable improvements globally.

Ukraine Embroiled in Another Corruption Scandal.

This past weekend, the Ukrainian government uncovered another large-scale corruption scandal involving missiles for the war effort. According to a report in Aljazeera, employees at a weapons manufacturer called Lviv Arsenal and members of the Ministry of Defense allegedly embezzled $40 million. It was intended to be a payment for missiles used in the war effort. Instead, the money was moved to several offshore accounts, and the military did not receive the 100,000 missiles they ordered. According to a report in NPR, the prosecutor general of Ukraine has announced that the funds have been recovered and will shortly be added to the defense budget. This scandal highlights two major issues. Firstly, corruption is still rife in Ukraine despite significant strides in anti-corruption efforts. Secondly, those 100,000 missiles would have been very handy for the war effort, and instead, several people decided to create a nice little earner for themselves.

China’s Ongoing Battle Against Corruption.

China and, more importantly, President Xi Jinping’s battle against entrenched corruption is continuing to make headline news. According to a report in Bloomberg, Xi’s most recent comments will put large swathes of the Chinese economy on edge, and that could continue to fuel uncertainty both domestically and abroad if one of the world’s biggest economies is in a state of constant turmoil. According to a report by CNN, Xi is primarily focused on misconduct in the healthcare, financial, and infrastructure sectors. These actions raise an interesting question: can corruption ever be truly stopped? While there have been some examples, such as Ukraine, where Zelenskyy has made some impressive strides in the last year, by and large, corruption and greed will always occur. If a country with China’s resources can’t fully root out corruption, then no one can. Catching a few big fish will always look good, but there will always be small fish in a pond that will induce greased palms and the benefits those bring.

EU Approves Membership Talks with Ukraine.

Yesterday, the EU approved membership talks with Ukraine and Moldova. While this is undeniably a big step for Ukraine as a country, it is not certain that Ukraine will be accepted into the bloc. According to a report in The Guardian, Hungarian President Viktor Orban, a well-known ally of Russia and President Putin, is threatening to hold up the process in any way possible. It is entirely possible that Orban’s sole goal was to get the EU to release 10 billion Euros from the EU budget. Ukraine has a lot of work to do before it can be accepted into the bloc. According to an article in Reuters, Ukraine must continue to clean up its judicial system and hire more anti-corruption professionals. It will be a long road, but based on its recent track record, Ukraine is committed to joining the EU despite the ongoing conflict with Russia.

The State of Corruption in Moldova.

(Disclaimer: Yesterday, I attended an event at the Brookings Institute where the Justice Minister of Moldova spoke about the country’s Anti-Corruption efforts).

Moldova borders Ukraine in Eastern Europe, and Russia is viewed as its sphere of influence due to Moldova being part of the Soviet Union. According to the Anti-Corruption Resource Center, Moldova is a country that, like many in the region, has a strong oligarchy where corruption and bribery are prevalent. Despite this, in 2021, the election of Maia Sandu and the Party of Action & Solidarity (PAS) signaled a new era of commitment to anti-corruption initiatives. An article by the Center For Security and International Studies states that due to the conflict in Ukraine, Moldova has applied for membership to the EU despite opening up to foreign investors and instituting judicial reforms. While these are encouraging steps to combat corrupt influences, it appears that, like Ukraine, Moldova is trying to make strides in eradicating corruption.