Ukraine’s justice and energy ministers have resigned amid a major embezzlement and kickbacks scandal involving the state nuclear power company.

Volodymyr Zelenskyy called for the removal of Justice Minister Herman Halushchenko and Energy Minister Svitlana Grynchuk on Wednesday, with the pair later submitting their resignations.

The damaging scandal – fast becoming one of the most significant government crises since Moscow launched its full-scale invasion – has put top officials under scrutiny.

It could not come at a worse time for Ukraine, as Russia’s renewed attacks on energy infrastructure cause rolling blackouts and Kyiv’s outnumbered forces retreat under relentless assaults.

At the centre of the scandal, Mr Halushchenko and other well-known ministers and officials are alleged to have gained payments from constructing fortifications against Moscow’s assaults on energy infrastructure. Former Deputy Prime Minister Oleksiy Chernyshov is also alleged to have been involved.

Mr Halushchenko said he would defend himself legally, while Mr Grynchuk posted on social media: “Within the scope of my professional activities there were no violations of the law.”

The findings of a 15-month investigation, including 1,000 hours of wiretaps, were revealed by the same anti-corruption watchdogs Mr Zelenskyy sought to weaken earlier this year.

These resulted in the detention of five people, and another seven linked to about $100m (£76m) in alleged kickbacks in the energy sector.

Ukrainian officials are scrambling for European funds to manage mounting energy shortages as Moscow targets critical infrastructure and natural gas production in an attempt to damage public morale.

The nation has been plagued by corruption since gaining independence, and Mr Zelenskyy was elected on a mandate to eliminate graft.

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Military procurement scandals also led to the ousting of Defence Minister Oleksii Reznikov in 2023.

Oleksandr Merezhko, a lawmaker with Zelenskyy’s party, said the scandal looks “really bad in the eyes of our European and American partners”.

He said: “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.

“While Russians destroy our power grid and people have to endure blackouts, someone at the top was stealing money during the war.”

But questions remain over how high the alleged corruption goes.

The National Anti-Corruption Bureau, known as NABU, refrained from identifying the suspects.

But it said they included a businessman, a former adviser to the energy minister, an executive who oversaw physical protection at state energy company Energoatem, and others responsible for money laundering. It dubbed the scheme “Midas”.

The agency also accused eight people of abuse of office, bribery, and possession of disproportionate assets.

The investigation, which NABU said conducted over 70 raids, was welcomed by the Ukrainian president, who urged officials to cooperate with it. Energoatom said the inquiry didn’t disrupt its operations.

NABU released excerpts of tapes in which the network, using code names and secretive language, discussed blackmail and pressuring Energoatom contractors to extract 10% to 15% in bribes and kickbacks in exchange for them to do business without facing internal blocks.

The network took advantage of a regulation enforced during martial law prohibiting contractors from claiming debts in court from companies providing essential services, such as Energoatom, which has annual revenues of around $4.7 billion (£3.6 billion). Four others worked to launder the money at a Kyiv office.

The tapes, which have not been independently verified, say about $1.2 million was handed to a former deputy prime minister, whom the plotters called “Che Guevara,” after the Argentinian revolutionary leader.

Ms Svyrydenko also said the cabinet submitted proposals to apply sanctions against Timur Mindich, a close associate of Zelenskyy, and businessman Alexander Tsukerman.

Police in Germany have arrested a suspected Hamas member who allegedly obtained guns and ammunition to attack Jewish targets.

Lebanese-born Borhan El-K was picked up on the motorway after crossing into Germany from the Czech Republic on Tuesday night.

In a statement, the German federal prosecutor’s office alleged in August he had procured an automatic rifle, eight Glock pistols and more than 600 pieces of ammunition in Germany.

It’s claimed the weapons were then handed to Wael FM, another suspected member of the Palestinian armed group Hamas, in Berlin.

Wael FM was arrested with the items on 1 October along with two other men named as Adeb Al G and Ahmad I.

The men, whose full names have not been released due to German privacy laws, were charged with preparing a serious act of violence endangering the German state and being members of a foreign terrorist organisation.

Authorities believe that the group had been gathering supplies since the summer.

“The weapons were intended for use by Hamas in assassination attacks on Israeli or Jewish institutions in Germany,” the federal prosecutor’s office said in a statement at the time.

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A source suggested that the first three men were detained when they met for the weapons handover.

The arrests came a day before Yom Kippur, the holiest day of the Jewish calendar.

Hamas – which is considered a terrorist organisation by the EU – previously denied any connection to the men and said the allegations against it were “baseless”.

Another alleged member of the group, Mohammed A, was arrested on 3 November in London at the request of German police.

He’s accused of taking five handguns and ammunition from Abed Al G and transporting them to Vienna where they were stored.

This morning Danish Police searched premises linked to Borhan El-K and another suspect in and around Copenhagen following Mr El-K’s arrest on Tuesday.

He was due to appear before a judge today.

In February, four suspected Hamas members went on trial in Berlin accused of plotting attacks on Jewish sites in Europe.

Hackers working for the Chinese military and government have been probing Australia’s key infrastructure and telecoms network, warns spy chief.

Mike Burgess, director-general of security for the Australian Security Intelligence Organisation, warned Australians could have their water and electricity supplies cut off as well as extensive banking trouble if hackers managed to cause widespread telecoms disruption.

“Foreign governments have elite teams investigating these possibilities right now,” Mr Burgess insisted.

However, China‘s foreign ministry accused Burgess’s statement of spreading false narratives.

The warning demonstrates the difficulty faced by Australian prime minister Anthony Albanese in trying to keep China close economically while trying to mitigate security concerns.

Burgess said espionage was estimated to have cost the country A$12.5bn (£6.2bn) last year, including billions in trade secrets and intellectual property.

In particular, he highlighted the activities of the Chinese hacking groups Salt Typhoon and Volt Typhoon.

He highlighted how Salt Typhoon had previously penetrated US telecoms systems intending to disrupt operations and pre-position for potential sabotage.

Burgess also warned that Australian companies could be crippled as trade competitors or that elections could be affected.

Chinese officials made complaints to the Australian government and private sector about ASIO whenever he spoke
publicly about China, Burgess said during a speech last week. “It won’t stop my resolve,” he said.

Not the first time alarms have been raised

Concerns were raised in Canberra in February after Chinese warships conducted live-fire drills with minimal warning in the Tasman Sea.

Australian authorities only heard about the drills when a commercial pilot for Virgin Australia notified Airservices Australia.

The drills resulted in 49 flights having to change their path.