Ukrainian Foreign Affairs Minister Andrii Sybiha and Canada’s Foreign Affairs Minister Anita Anand hold a press conference during the G7 meeting, in Niagara-on-the-Lake, Ont., on Wednesday.Carlos Osorio/Reuters
An unfolding corruption scandal in Ukraine will not deter Canada from continuing its support for the war-torn country, but Ottawa expects Kyiv to implement reforms to fight graft, Foreign Affairs Minister Anita Anand says.
As Russia’s renewed attacks on Ukraine’s energy infrastructure cause rolling blackouts ahead of winter, a major embezzlement and kickback scheme involving the state-owned nuclear power company has put top Ukrainian officials under scrutiny.
It is fast becoming one of the most significant crises for Kyiv since Moscow’s full-scale invasion, with media reports implicating a close associate of President Volodymyr Zelensky.
The alleged US$100-million scheme could also hand opponents of Western aid to Ukraine a rationale for cutting assistance after almost four years of war.
The Canadian government has provided nearly $22-billion in various forms of aid to Ukraine since 2022.
Ms. Anand said Canada has offered to help Ukraine tighten oversight and accountability in government to prevent such corruption.
“Canada is a long-time supporter of Ukraine’s reform efforts. Continued reform is essential for transparency, accountability and good governance, which are all critical for Ukraine’s long-term prosperity,” she said in a statement.
She noted that Mr. Zelensky has addressed these developments and expressed his support for the investigation.
Ms. Anand said she told Ukrainian Foreign Affairs Minister Andrii Sybiha, who attended a G7 meeting in Niagara-on-the-Lake, Ont., this week, that Canada “continues to offer support to Ukraine in terms of governance reforms.”
She said Canadians should trust that Ottawa carefully scrutinizes foreign aid to identify risks.
“I want to assure Canadians that all of our international assistance projects undergo a rigorous assessment before the agreement is signed. This allows us to identify any potential fiduciary risks, to put in place robust risk management measures and to monitor compliance regularly,” Ms. Anand said.
Ukrainian officials are scrambling for European funds to manage mounting energy shortages as Moscow targets critical infrastructure and natural gas production to try to sink public morale. Meanwhile, Ukraine’s outnumbered forces are retreating under relentless assaults.
The country has been plagued by corruption since gaining independence, and Mr. Zelensky was elected on a mandate to eliminate graft. Military procurement scandals led to the ouster of Defence Minister Oleksii Reznikov in 2023.
But the timing of this crisis couldn’t be much worse.
“Internally this scandal will be used to undermine unity and stability within the country. Externally, our enemies will use it as an argument to stop aid to Ukraine,” said Oleksandr Merezhko, a lawmaker with Mr. Zelensky’s party.
“It looks really bad in the eyes of our European and American partners. While Russians destroy our power grid and people have to endure blackouts, someone at the top was stealing money during the war.”
The International Monetary Fund will soon begin a staff mission to Ukraine to discuss its financing needs and a potential new lending program, spokesperson Julie Kozack said Thursday, underscoring the need for continued anti-corruption efforts.
Ukrainian Prime Minister Yuliia Svyrydenko has announced an audit of all state-owned companies, including those in the energy sector.
Anti-corruption authorities said this week they had detained five people and identified two others still at large suspected of involvement in the alleged plot to control procurement at nuclear agency Energoatom and other state enterprises.
Ukraine is in talks with the IMF about a new four-year lending program that would replace the current four-year US$15.5-billion program. Kyiv has already received US$10.6-billion of that amount.
Ms. Kozack told reporters at a regular briefing that the IMF staff mission would centre on policies to safeguard Ukraine’s macroeconomic stability and ensure its debt sustainability, with a focus on reforms to promote domestic revenue mobilization, strengthen governance and combat corruption.
“We’ve been saying for some time that Ukraine needs a robust anti-corruption architecture to level the playing field, safeguard public resources, improve the business climate and attract investment,” Ms. Kozack said, calling efforts to fight corruption a central requirement for Ukraine’s donors.
With files from the Associated Press and Reuters