Ukraine Energy Minister Herman Halushchenko addresses lawmakers during a Parliamentary session in Kyiv, October 8, 2021 (Valentyn Ogirenko/Reuters)

Wednesday’s Coverage: Zelensky — Frontline Situation “Difficult” in East and South

UPDATE 1743 GMT:

Amid the Russian assault in the partly occupied Zaporizhzhia region, Ukraine President Volodymyr Zelensky has visited the area.

Zelensky had a security briefing with commanders. He visited hospitalized troops and an underground school, and laid flowers at a memorial for fallen soldiers.

UPDATE 1703 GMT:

Eight Baltic and Nordic members of NATO have announced funding of a $500 million package of U.S.-sourced military equipment and munitions for Kyiv.

”Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden have agreed on a joint arms donation intended to strengthen “air defense and support for the Ukrainian Air Force,” announced the Danish Defense Ministry after a meeting of the Nordic-Baltic Eight in Helsinki.

The exact type of weaponry and equipment was not disclosed.

UPDATE 1100 GMT:

German Chancellor Friedrich Merz has spoke with Ukraine President Volodymyr Zelensky about corruption allegations against Ukrainian Government ministers.

Merz’s spokesperson Stefan Kornelius said Zelensky informed the Chancellor [Merz] about the corruption investigations, “pledging full transparency and long-term support for independent anti-corruption agencies” and “further swift measures to regain the trust of the Ukrainian people, European partners, and international donors”.

Merz emphasized “the German government’s expectation that Ukraine would vigorously pursue the fight against corruption and further reforms, particularly in the area of ​​the rule of law”.

The leaders also spoke about the need to increase pressure on the Kremlin to enter serious negotiations over an end to Russia’s invasion. They considered “a more effective use of Russia’s immobilized state assets”, as the EU debates a “reparations loan” to Kyiv (see 1047 GMT).

Talks included assistance with air defence and energy infrastructure, and the growing number of young Ukrainian men seeking to leave the country for the EU.

UPDATE 1047 GMT:

European Union finance ministers are discussing economic and financial support of Ukraine today.

Talks include a possible “reparations loan” of €140 billion, based on Russia’s frozen assets in Europe. The proposal was blocked last month by Belgium, where Euroclear holds most of the assets.

Zelensky told Bloomberg Television:

I hope, God bless, we will get this decision. [If not] we will have to find an alternative, it’s a question of our surviving. That’s why we need it very much. And I count on partners.

The President said, “If we can have this €140 to €160 billion this will be a big loss for Putin and his circle of people. You know that it’s their money. And that’s why, for them, it’s really destabilizing the system, their clique.”

European Commission President Ursula von der Leyen said this morning that the would be “the most effective way to sustain Ukraine’s defense and its economy”.

Netherlands Finance Minister Eelco Heinen said the EU needs to listen to Belgium’s concerns. However, he added:

It’s important that we keep supporting Ukraine. So that’s what I’m fighting for here, that we have to keep the money going through Ukraine so it can be stay afloat – the economy and also their military – in order to fight the aggression that Russia is putting on Ukraine.

UPDATE 0719 GMT:

China is sharply reducing purchases of Russian oil in November, replacing the imports with crude from Saudi Arabia.

China has taken 926,000 barrels per day from Russia this month,—36% less than October’s 1.45 million bpd. Chinese refineries increased imports from Saudi Arabia by around 500,000 bpd to 1.78 million. The Gulf State is now Beijing’s largest supplier.

In India, five large refineries have refused Russian shipments for December. Only State-owned Indian Oil and Nayara Energy, owned by Russia’s Rosneft, are continuing purchases of Russia’s oil.

Indian Oil is only taking the Russian crude from companies not subject to US sanctions.

Indian refineries plan to replace Russian oil with supplies from Saudi Arabia and Iraq, say industry sources.

UPDATE 0708 GMT:

Using the American outlet CNN, Kremlin spokesperson Dmitry Peskov has appealed to Donald Trump to re-enter talks with Vladimir Putin.

Peskov said Moscow is ready to improve relations with Washington “as quickly as America is ready”: “We sincerely hope that President Trump is still willing to facilitate a political and diplomatic settlement of the Ukrainian issue.”

He proclaimed the need to “improve bilateral relations and open up new opportunities for trade and economic cooperation”, as “very bright horizons are opening up for the two sides”.

He appealed to Trump the businessman, “We’re wasting time, money, and profits.”

Foreign Minister Sergey Lavrov earlier called on the Trump Administration to resume preparations for a summit in Budapest, Hungary.

The summit was announced after a phone call from Putin to Trump on October 16. However, the Kremlin scuttled it by maintaining its ultimata for Ukraine to give up territory, including all of the Donetsk region, and continuing its airstrikes on Ukrainian civilians.

ORIGINAL ENTRY: Ukraine President Volodymyr Zelensky has fired the Energy and Justice Ministers amid allegations of a $100 million corruption ring including his former business partner Tymur Mindich.

Zelensky demanded resignations from Justice Minister Herman Halushchenko, who has been implicated in the scheme for kickbacks from suppliers, and Energy Minister Svitlana Grynchuk. He called for personal sanctions against Mindich, the alleged organizer of the ring.

Haluschenko, who was Energy Minister from 2021 to 2025, and Grynchuk denied wrongdoing. Halushchenko said his suspension from office was “appropriate” and vowed to defend himself.

In his nightly address to the nation, Zelensky said:

There must be maximum integrity in the energy sector, in absolutely all processes. I support every investigation carried out by law enforcement and anti-corruption officials. This is an absolutely clear and consistent position for everyone.

Right now, it is extremely difficult for everyone in Ukraine enduring power outages, Russian strikes and losses. It is absolutely unacceptable that, amid all this, there are also some schemes in the energy sector.

The National Anti-Corruption Bureau named eight suspects, including Mindich, after a 15-month investigation into Energoatom, Ukraine’s State nuclear energy company. It said parties were forced to pay kickbacks of 10-15% to avoid having payments for services blocked or losing their supplier status.

Investigators searched the premises of Haluschenko and Mindich, who fled Ukraine — possibly to Israel — hours earlier.

The Specialized Anti-Corruption Prosecutor’s Office said in a court hearing on Tuesday: “With Halushchenko’s assistance, Mindich controlled financial flows in Ukraine’s gas and energy sectors.”

In an audio recording released by prosecutors, former Deputy Prime Minister Oleksiy Chernyshov is allegedly heard discussing a $500,000 cash payment, to be collected by his wife.

Chernyshov has been charged with abuse of office in a separate case.

He reportedly used the money from the corruption ring to finance the construction of high-end houses near Kyiv. The funds were allegedly given to him by Ihor Myroniuk, a former advisor to then-Energy Minister Halushchenko, who has been charged.

When Chernyshov was charged with bribery and abuse of office in June, Mindich said in an audio presented by prosecutors, “A stupid asshole. If he exposes [other suspects] in the case, we’re fucked.”