https://sputnikglobe.com/20240903/construction-kickbacks-corruption-pyramid-why-was-ukraines-electricity-czar-really-sacked-1119999489.html
Construction Kickbacks, ‘Corruption Pyramid’: Why Was Ukraine’s Electricity Czar Really Sacked?
Construction Kickbacks, ‘Corruption Pyramid’: Why Was Ukraine’s Electricity Czar Really Sacked?
Sputnik International
The supervisory board of Ukrenergo – Ukraine’s state-owned electricity transmission system operator, has sacked its chief Volodymyr Kudrytsky, voting 4-2 on Monday evening to oust and replace him with deputy chairman Oleksiy Brekht. Here's what we know about it.
2024-09-03T12:58+0000
2024-09-03T12:58+0000
2024-09-04T16:24+0000
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Neither Volodymyr Zelensky’s office nor the Energy Ministry have commented on the dismissal. However, Ukrainian media, lawmakers and Kiev’s foreign donors have expressed an array of emotions regarding the move.In a letter to Prime Minister Denys Shmygal seen by media, Ukraine’s foreign donors, including the EU, the European Bank for Reconstruction and Development, and the International Finance Corporation expressed “deep concern” over Kudrytsky’s sacking, warning that “such an event could jeopardize our collective ability to support Ukrenergo and other priority measures of Ukraine’s vital energy security.”The warning came on the heels of an announcement by Ukraine’s economy minister on Saturday that Kiev expects an $800 million “financing package for the energy sector” from the US.Officially, Kudrytsky was dismissed “on grounds of failing to safeguard energy facilities amid intensified Russian attacks,” with an informed source telling Ukrainian media he was “accused of improperly implementing previous decisions of the headquarters of the supreme commander-in-chief and poor protection of Ukrenergo facilities.”Government e-procurement records service ProZorro shows that under Kudrytsky’s watch, Ukrenergo approved 63 tender-free contracts in late 2023 worth $1.6 million apiece for the installation of protective structures on transformers, with completion of construction pushed back from February to April to June 2024, and none of the projects completed as of September 1.Power Grab?But Ukrainian lawmaker Yaroslav Zheleznyak claims the charges against Kudrytsky are trumped up, and that Ukrenergo has been the only entity actually trying to build protective structures and to stock up on repair equipment in a timely manner.Lawmaker Andriy Zhupanin warned that Kudrytsky’s sacking would not be a “solution to problems,” but just their start.Rada Committee for Energy Issues head Andriy Gerus dubbed Kudrytsky’s dismissal unfounded, claiming Ukrenergo built shelters at 36 substations, “more than all energy companies built together,” and attracted the aforementioned €1.5 billion for repair works.In an interview with Western media last week, Kudrytsky predicted a difficult winter ahead for Ukraine against the backdrop of the problems facing the country’s energy sector, but promised to avoid “some kind of apocalyptic scenario,” like blackouts, apparently in response to concerns expressed in the Financial Times last month suggesting that “the risk of a humanitarian catastrophe is high.”Ukraine has lost some 40% of its hydroelectric power generation capacity and about 80% of its thermal power capacity under Kudrytsky’s watch. He was appointed to his job in 2020 on the back of a corruption scandal against his predecessors, and came from the private sector, previously working for UK-headquartered professional services company Grant Thornton to advise and restructure Ukrainian state-owned companies including Naftogaz and Yuzhmash after they had fallen on hard times.
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why was ukraine's electricity chief sacked, what's the state of ukraine's electricity grid, is ukraine corrupt, is ukraine's government corrupt
why was ukraine's electricity chief sacked, what's the state of ukraine's electricity grid, is ukraine corrupt, is ukraine's government corrupt
Construction Kickbacks, ‘Corruption Pyramid’: Why Was Ukraine’s Electricity Czar Really Sacked?
12:58 GMT 03.09.2024 (Updated: 16:24 GMT 04.09.2024) The supervisory board of Ukrenergo – Ukraine’s state-owned electricity transmission system operator – has sacked its chief Volodymyr Kudrytsky, voting 4-2 on Monday evening to oust and replace him with Deputy Chairman Oleksiy Brekht. Here's what we know about it.
Neither Volodymyr Zelensky’s office nor the Energy Ministry have commented on the dismissal. However, Ukrainian media, lawmakers and Kiev’s foreign donors have expressed an array of emotions regarding the move.
In a
letter to Prime Minister Denys Shmygal seen by media, Ukraine’s foreign donors, including the EU, the European Bank for Reconstruction and Development, and the International Finance Corporation expressed “deep concern” over Kudrytsky’s sacking, warning that “such an event could jeopardize our collective ability to support Ukrenergo and other priority measures of Ukraine’s vital energy security.”
The warning came on the heels of an announcement by Ukraine’s economy minister on Saturday that Kiev expects an
$800 million “financing package for the energy sector” from the US.
Officially, Kudrytsky was dismissed “on grounds of failing to safeguard energy facilities amid intensified Russian attacks,” with an informed source
telling Ukrainian media he was “accused of improperly implementing previous decisions of the headquarters of the supreme commander-in-chief and poor protection of Ukrenergo facilities.”
Kudrytsky is under investigation for alleged money laundering, graft, and abuse of power, and faces five to eight years in prison and the confiscation of property if convicted.
Government e-procurement records service ProZorro shows that under Kudrytsky’s watch, Ukrenergo approved 63 tender-free contracts in late 2023 worth $1.6 million apiece for the installation of protective structures on transformers, with completion of construction pushed back from February to April to June 2024, and none of the projects completed as of September 1.
But Ukrainian lawmaker Yaroslav Zheleznyak claims the charges against Kudrytsky are trumped up, and that Ukrenergo has been the only entity actually trying to build protective structures and to stock up on repair equipment in a timely manner.
“Galushchenko-Shurma-Myronyuk wanted to get rid of him for a long time,” Zheleznyak wrote in a social media post, referring to Ukraine’s energy minister, deputy head of the office of president, and deputy chief of Ukraine’s State Emergency Service. “The real reason is the animal desire to sit on all financial flows, including 100 billion hryvnia [about $2.4 billion] annually, and €1.5 billion in credit lines. The National Commission for State Regulation of Energy and Public Utilities has been captured, and with the addition of Ukrenergo, the construction of the corruption pyramid can be considered complete,” Zheleznyak wrote.
Lawmaker Andriy Zhupanin warned that Kudrytsky’s sacking would not be a “solution to problems,” but just their start.
Rada Committee for Energy Issues head Andriy Gerus dubbed Kudrytsky’s dismissal unfounded, claiming Ukrenergo built shelters at 36 substations, “more than all energy companies built together,” and attracted the aforementioned €1.5 billion for repair works.
In an interview with Western media last week, Kudrytsky predicted a difficult winter ahead for Ukraine against the backdrop of the problems facing the country’s energy sector, but promised to avoid “some kind of apocalyptic scenario,” like blackouts, apparently in response to concerns expressed in the
Financial Times last month suggesting that “the risk of a humanitarian catastrophe is high.”
Ukraine has lost some 40% of its hydroelectric power generation capacity and about 80% of its thermal power capacity under Kudrytsky’s watch. He was appointed to his job in 2020 on the back of a corruption scandal against his predecessors, and came from the private sector, previously working for UK-headquartered professional services company Grant Thornton to advise and restructure Ukrainian state-owned companies including Naftogaz and Yuzhmash after they had fallen on hard times.
