The Grid, the State, and the War: Ukraine’s Double Fight Against Missiles and Corruption

December 5, 2025
Kyiv is not just rebuilding the grid but confronting deep corruption, fighting for both electricity and the integrity of the state.
article-photo
Photo credit: Ukraїнська energeтика

The war has made Ukraine’s power grid a frontline. Russia’s sustained airstrike and drone attacks have knocked out most large power plants and much of the transmission network. By spring 2024 roughly two-thirds of Ukraine’s dispatchable generation was destroyed or captured.

Coal-fired stations were hit hardest (up to ~80% disabled), leaving the grid dependent on nuclear (55% of output) and shrinking renewable supplies. Ukraine now enters winters bracing for rolling blackouts (officials warned up to 6–8 hours off on the worst days). In response, crews literally work to the fullest to restore power after each strike.

The International Energy Agency reports that since 2022 over half of Ukraine’s pre-war generation capacity has been destroyed, occupied or damaged. For example, Russia’s occupation of the Zaporizhzhia nuclear plant alone cost Ukraine roughly 6 GW of capacity as nuclear power supplied about half of Ukraine’s electricity before the war.

By mid‑2024 2.3 GW power deficit forced rolling electricity cuts; supply was maintained only by coordinated cuts and emergency imports. Ukraine has responded by rapidly fortifying key facilities and diversifying supplies. Its grid synchronized with the Continental European network. This integration let Ukraine participate in cross‑border markets.

For example, by late 2024 Ukraine was importing a record 4.4 TWh of electricity from the EU (and even exporting surplus in summer 2025). Ukraine’s grid is now bi-directionally linked with Europe: fuel and electrons can flow in when needed, but during calmer periods Ukraine can ship power back west.

Indeed, Kyiv has been building new routes: in 2024 it took its first-ever U.S. LNG shipments via Greece, and a planned “vertical corridor” will link Greek LNG terminals through the Balkans up to Ukraine.

In the gas sector, Ukraine has effectively severed dependence on Russian supply. Pipeline imports from Russia were halted in 2022, and Ukraine now relies on domestically built reserves, European imports and LNG. To prepare for each winter, the EU purchases gas.

For example, in August 2025 the EBRD extended a €500 million loan (90% covered by EU guarantees) to Naftogaz for emergency gas imports. Norway also contributed a €83 million grant to that package. The EBRD notes this is part of a larger €1.6 billion financing of Naftogaz since 2022, all designed to “integrate the Ukrainian gas market with that of the EU”.

Renewable energy also becomes important in Ukraine’s wartime strategy. Kyiv is pushing a “build back better” approach by expanding decentralised solar and wind capacity in parallel with repairs to the old system. Officials aim for about 12.2 GW of solar by 2030 (nearly 27% of final energy use).

Ukraine’s wind sector is also gaining momentum. Before the invasion Ukraine had over 2 GW of wind (mostly onshore), but much of that is now in occupied areas. Still, about 230 MW of new wind farms have come online since 2022, and some 7 GW more are in the project pipeline. Recent reforms (a 2025 grid-connection law and annual capacity auctions) have made the market more transparent.

Studies suggest its solar PV and onshore wind resources could theoretically generate 9-14 times more more electricity than Ukraine uses today. By comparison, that exceeds Germany’s sun-and-wind capability.

In practice much of this potential lies in war-affected regions, but even a fraction realized could transform Ukraine’s energy mix. Crucially, such abundant renewables would power new industries. Analysts find that Ukraine could produce ~18–38 million tons per year of hydrogen from green power – enough to fuel steel mills, ammonia plants and even export to the EU.

Fighting Corruption and Reforming the Energy Sector

Even as Ukraine races to keep the grid alive, its leaders are under pressure to clean up corruption schemes in the energy sector. In recent months, Kyiv has launched sweeping institutional reforms in response to the corruption scandals. President Zelensky has pledged a “full reset” of major state energy companies. On November 15, 2025 he announced plans to oust top managers and boards at firms like Energoatom, Naftogaz, and Ukrhydroenergo, replacing them through rapid open procedure of recruitment.

A presidential decree ordered a step-by-step reboot: within weeks new supervisory boards will be installed (with help from G7 experts) and state audit agencies will scrutinize accounts. Zelensky told parliament that any exposed scheme “must receive an immediate and fair response” from law enforcement, and he stressed that “full transparency remains a priority” for the energy sector.

The government is also tightening oversight of state firms. Energy analysts at DiXi Group report that Ukraine’s Cabinet has changed the rules for supervisory boards nationwide, requiring to conduct comprehensive audits and report results within weeks. In practice, this has meant sacking the Energoatom board and initiating emergency audits of its recent procurements. A draft law was even proposed to lift a moratorium on debt enforcement that had been used by corruptioners.

Meanwhile, Ukraine’s competition authority is investigating energy markets for price‑rigging, and law enforcement (the NABU anti‑corruption bureau and SAPO prosecutors) have opened multiple high‑profile cases beyond Energoatom, including into electricity and oil sector deals.

Operation MIDAS: A Corruption Scandal and its Lessons

In mid-November 2025 Ukraine’s anti‑corruption agencies unveiled a bombshell probe code‑named “Operation Midas.” NABU and the Specialized Prosecutor’s Office say a criminal network at Energoatom was skimming roughly 10–15% off every defense contract. In total about $100 million is alleged to have been laundered from the nuclear corporation’s construction and procurement.

The suspected main figure is Timur Mindich, a former business partner of President Zelensky, who co‑founded Zelensky’s old Kvartal 95 company. Mindich fled abroad before he could be arrested. Eight individuals have been charged so far, including two former ministers (then‑Justice Minister Halushchenko and Energy Minister Hrynchuk, both of whom resigned) and several executives.

The scheme was allegedly tied to contracts for fortifications around energy facilities. These defenses were needed as Russia’s missiles pounded Ukraine’s grid. In effect, funds meant to protect power plants were taken for personal profit (reports say one deputy minister built several luxury mansions with his take). The probe has captured public anger by highlighting how corruption can directly cost lives in wartime.

Midas also reveals institutional lessons. The fact that Ukraine’s special anticorruption bodies could uncover such a high‑level scheme is seen by some observers as a sign that the country’s accountability mechanisms still work. NABU’s lead investigator stressed that bringing the case to light shows “Ukraine is slowly moving in the right direction” away from old impunity.

President Zelensky has imposed sanctions and vowed that “everyone who created schemes must receive a clear procedural response” with verdicts.

This episode demonstrates that even in crisis, Ukraine’s anti‑corruption agencies operate, and that civil society and the media continue to push for accountability.

In summary, Ukraine’s energy security today is being forged in extremis. Continuous Russian attacks have forced Kyiv to rebuild and innovate – from synchronizing its grid with Europe to rapidly expanding solar rooftops and backup generators. International support – in the form of emergency loans, equipment aid and political guarantees – has been indispensable in keeping up with the times.

Simultaneously, the government is grappling with corruption risks that threaten these efforts. The recent anti‑corruption investigations reflect Ukraine’s recognition that energy security cannot be sustained without institutional integrity.

As Ukraine heads into another winter of war, success will hinge on the synergy of frontline resilience measures, alliance backing, and credible governance reforms to ensure that energy supplies stay reliable and clean.

In defending its energy system and cleansing its institutions, Ukraine is transforming a fight for electricity into a fight for a stronger, cleaner, and truly European future. If successfully implemented – and if the war is brought to a close – Ukraine could emerge as a modern, resilient energy player, contributing clean power and diversified fuel flows to Europe.

Daria Synhaievska
Analyst at UkraineWorld