Kyiv: Ukraine announced Wednesday that a substantial portion of the membership of the supervisory boards of several state energy companies will have their powers terminated amid a $100 million corruption scandal in the country's energy sector.

According to Anadolu Agency, Prime Minister Yulia Svyrydenko stated on Telegram that the Ukrainian government initiated the 'immediate termination' of the powers, including at the country's gas transmission system operator. She emphasized that the Cabinet of Ministers approved a transparent procedure for selecting candidates for supervisory boards, with new members expected to be elected by the end of this month.

Svyrydenko also mentioned that the government instructed Defense Minister Denys Shmyhal to reset the supervisory boards at defense sector enterprises, with expectations for regular reports on the progress. She highlighted the significance of this overhaul, noting that supervisory board members are responsible for strategic management and control of the company's internal processes.

The prime minister's remarks followed a meeting with President Volodymyr Zelenskyy, who discussed a 'personnel overhaul in the energy sector.' Zelenskyy underlined the importance of supervisory boards in ensuring effective management and oversight of internal processes in companies.

Furthermore, Zelenskyy instructed the Prime Minister to inform Ukraine's key partners about the measures being taken by the Cabinet of Ministers to enhance trust in Ukraine and its institutions. This move comes after Ukraine's anti-corruption agencies uncovered a large-scale corruption scheme in the energy sector involving at least $100 million, particularly affecting the state-owned nuclear energy provider Energoatom, leading to high-profile resignations, including the energy minister and the president's chief of staff.

A crackdown on corruption is vital for Ukraine's aspirations to join the European Union, which began formal accession negotiations with Kyiv in June 2024. Critics argue that while Ukraine has long struggled with widespread corruption, the ongoing Russia-Ukraine war has overshadowed efforts to eliminate graft.