Corruption Is Bleeding Ukraine Dry and the War Won’t Save It

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Key Takeaways

Ukraine is fighting two wars: one with Russia, the other with itself. And the second one might be even harder to win.

For decades, Ukraine has been rich in resources but poor in opportunity. Fertile land, a prime European location, and a resilient, educated population should have made it a regional powerhouse. Instead, Ukraine has remained economically fragile, chronically dependent on foreign aid, and hopelessly tangled in corruption.

Corruption in Ukraine isn’t just a flaw in the system. It is the system.

It’s reality, backed by Transparency International’s Corruption Perceptions Index, which placed Ukraine at 104 out of 180 countries in 2024. Decades of insider deals, state capture by oligarchs, and institutional decay have kept the country in a chokehold. The war with Russia has only made things worse, offering both a distraction and an excuse.

Infographic of Ukraine with a corruption score of 36 out of 100 and a global rank of 104th, based on Transparency International’s index
Source: Transparency International

In 2023, Ukraine’s GDP rebounded to around $178 billion. It sounds hopeful—until you remember that it collapsed nearly 30% in 2022. More importantly, this modest recovery was largely powered by foreign aid and war-time spending, not real growth. Strip away the subsidies and emergency packages, and what’s left is a country whose economy is still bleeding from within.

Let’s be blunt: Ukraine cannot rebuild if it doesn’t clean house.

The Real Cost of Corruption

The numbers are staggering. Billions disappear annually through bribery, procurement fraud, and embezzlement. That’s money not spent on roads, schools, or hospitals.

Healthcare, for instance, is a minefield of informal payments. According to Transparency International, more than half of Ukrainians have faced corruption in the medical system. It’s normalised. You don’t get treated unless you pay, and sometimes you don’t get treated even if you do.

Infrastructure is no better. Zelensky’s flagship “Big Construction” initiative was launched in 2020 to repair roads, schools, and hospitals. Ambitious? Yes. Transparent? Not quite. By 2023, senior officials like Kyrylo Tymoshenko had resigned amid scandals over inflated contracts and questionable tenders. The programme was supposed to symbolise a new Ukraine. Instead, it exposed the same old rot.

How Did It Get This Bad?

The seeds were sown at birth. When Ukraine gained independence in 1991, it inherited a Soviet-style command economy and an elite class trained to serve Moscow, not the public. The transition to capitalism was chaotic.

Privatisation, meant to democratise wealth, did the opposite. In a matter of years, a handful of men—Ukraine’s oligarchs—snapped up key industries like metals, gas, and banking at absurd discounts. These men didn’t just become rich. They became untouchable.

By the late 1990s, political power was openly traded. Oligarchs funded campaigns, bought media empires, and effectively wrote their own laws. Elections came and went, but corruption remained a bipartisan affair. Kuchma, Yushchenko, Yanukovych—they all promised reform. None delivered.

Even now, Ukraine’s parliament is riddled with MPs protecting business interests. The courts are notoriously compromised. Justice, for most, is a myth.

Corruption Isn't Just Political, It's Personal

The phrase “Ukraine corruption” tends to conjure up images of shady billionaires and backroom deals. But that’s only half the story. The other half lives in the ordinary interactions of daily life—getting a driver’s license, enrolling in school, or scheduling surgery.

Bribes are not occasional—they’re expected. And when corruption becomes a requirement for basic rights, it stops being an abstract problem. It becomes a daily humiliation.

That’s the reality for millions of Ukrainians.

The Resistance Within

Despite the bleakness, Ukraine has something few other corrupt states do: a vigorous civil society.

Organisations like the Anti-Corruption Action Center (AntAC) and NABU (National Anti-Corruption Bureau of Ukraine) are leading the charge. AntAC pushed for the creation of Ukraine’s High Anti-Corruption Court, which started operating in 2019. NABU, for its part, has exposed multi-million dollar scams in energy, defence, and public procurement.

They’ve faced threats, harassment, and legal roadblocks. But they haven’t stopped.

Another breakthrough? ProZorro, a digital procurement platform that made all government tenders public. Since 2017, ProZorro has saved Ukraine nearly $6 billion. That’s real reform. That’s real resistance.

But they’re fighting upstream.

International Partners Are Watching—And Paying

Ukraine’s allies—the IMF, EU, World Bank, and the United States—are not blind to the corruption problem. In fact, they’ve made billions in aid conditional on reforms.

But enforcement is spotty. Western governments are in a bind: support Ukraine against Russia and hold it accountable? The risk is that, in the rush to show solidarity, we ignore how deeply the system is still broken.

Reform isn’t just Ukraine’s responsibility—it’s a prerequisite for ongoing support.

War Is Not a Clean Slate

There’s a dangerous myth that war is a great reset—that after victory, Ukraine will automatically rebuild itself into a thriving democracy. That’s fantasy.

Corruption doesn’t pause during conflict. In fact, it flourishes. Emergency budgets, fast-tracked tenders, loosened oversight—these are fertile grounds for exploitation.

If anything, the war has created more opportunities for corruption, not fewer. Defense contracts, humanitarian aid, and infrastructure rebuilding are all magnets for grifters. And as long as oversight is weak, the cycle will continue.

Victory against Russia will mean little if Ukraine loses the peace to its own dysfunction.

What Needs to Happen Now

Ukraine’s anti-corruption efforts must become more than symbolic. Investigations must lead to prosecutions. Prosecutions must lead to convictions. And convictions must lead to change—not just of personnel, but of systems.

The country needs:

  • An independent judiciary insulated from political pressure
  • Stronger protection for whistleblowers and investigative journalists
  • Continued international pressure tied to real benchmarks, not empty promises
  • Digital governance tools like ProZorro applied across all sectors

These aren’t just policy tweaks. They’re survival tactics.

Because without deep reform, Ukraine’s economy—already battered—will collapse under the weight of its own rot. And international goodwill will only stretch so far.

Hope Is Not Naive, But It Must Be Earned

To say there’s no hope for Ukraine is both unfair and inaccurate. The country has made real strides. The youth are more politically engaged than ever. Civic institutions are louder, bolder, and more effective. There is talent, will, and vision.

But hope must be earned.

The window for transformation is now. The eyes of the world are watching. Billions are being spent. Sacrifices are being made. The cost of failure—economically, politically, morally—is unthinkable.

If Ukraine is to have a future as a secure, prosperous, and independent nation, it must win the war against corruption with the same ferocity it brings to the battlefield.

Because this isn’t just about building a stronger Ukraine.

It’s about proving—to the world and to itself—that it deserves to exist not just as a victim of aggression, but as a beacon of resilience, transparency, and justice.

Anything less is betrayal.

References:

https://www.macrotrends.net/global-metrics/countries/UKR/ukraine/gdp-gross-domestic-product

https://www.transparency.org/en/countries/ukraine

https://www.elibrary.imf.org/view/journals/002/1997/109/article-A001-en.xml

https://ppu.gov.ua/en/press-center/16-veresnia-1996-roku-v-ukraini-zaprovadyly-novu-valiutu-hryvniu/

https://www.swecare.se/media/okhd3tkg/ukrainian-healthcare-system-in-2024-a-comprehensive-report-final-1.pdf

https://www.kyivpost.com/post/7988

https://en.wikipedia.org/wiki/Corruption_in_Ukraine

https://nabu.gov.ua/en/news/novyny-spravu-rozkradannya-gazu-na-7298-mln-grn-skerovano-do-sudu/

https://www.hks.harvard.edu/publications/overcoming-corruption-and-war-lessons-ukraines-prozorro-procurement-system

 

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