The “Utilities War” in Ukraine: A Case Study on Corruption in Critical Support Infrastructure

Non-payment of utility bills, evasion of payment through a variety of corruption schemes and fraud, and unauthorized reallocation of the costs of consumed utilities are widespread in Ukraine among the public and businesses, often with the involvement of local and central government officials. This research examines the relationships between the public, government, and the private sector around the provision of public utilities in Ukraine. This project is based on participant observation and interviews with experts, employees of utility-providing enterprises, and consumers, including both the public and small business owners. The findings have implications for the legitimization of political power and economic order in Ukraine, the degree to which corrupt practices are habituated in society, and the impact of domestic utility provision on regional energy security.

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Olena Leipnik, of Sam Houston State University, was a 2012 Regional Policy Symposium participant.