Ukrainian President Volodymyr Zelenskyy on Thursday imposed sanctions on a former business associate allegedly linked to a sweeping corruption scheme that has fuelled outrage in a country already worn down by nearly four years of war.
The move came just a day after Zelenskyy requested the resignation of two cabinet ministers, part of his push to distance himself from allies implicated in what investigators describe as a major money-laundering network.
According to anti-corruption officials, the scheme diverted an estimated $100 million from Ukraine’s energy sector—an industry already reeling from relentless Russian attacks that have left millions facing crippling power shortages.
Investigators identified 46-year-old businessman Timur Mindich, long reported by Ukrainian media as having close ties to Zelenskyy, as the key architect behind the illicit operation.
In response, Zelenskyy’s office issued a presidential decree enforcing “personal special economic” sanctions on Mindich and another businessman, Oleksandr Tsukermann. The order freezes their assets, revokes any state honors, and restricts their business operations and international travel.
Both men, who also hold Israeli citizenship, are believed to have left Ukraine.
Following a call with German Chancellor Friedrich Merz, Zelenskyy pledged that “Ukraine will do everything necessary to strengthen partners’ trust,” though he refrained from directly addressing the scandal.
Donors Demand Accountability
Mindich’s alleged role, given his past friendship with Zelenskyy, poses a significant political challenge for the wartime president.
A European diplomat in Kyiv, speaking anonymously to AFP, stressed the need to “clean” the Ukrainian government of corrupt actors, while noting that the scandal demonstrates how much more effective Ukraine’s anti-corruption institutions have become.
Germany—Ukraine’s largest EU donor—signaled its expectation that Kyiv intensify its reforms. Hungary’s Prime Minister Victor Orban, a frequent critic of Ukraine, went further, claiming that “a Ukrainian war mafia network with a thousand ties to President Zelensky has been exposed.”
The International Monetary Fund, which Ukraine hopes will approve a new loan, said combating corruption remains a “central piece of reform for the donor community.”
‘He Can Go To Hell’
A senior Ukrainian official told AFP that Zelenskyy was enraged by the revelations and has not spoken to Mindich since the scheme surfaced this week.
Mindich previously co-owned Kvartal 95, the production company founded by Zelenskyy during his career as a comedian.
“What is there to talk about? He can go to hell,” the official said, adding that the president was “stunned when he found out what was happening.”
Zelenskyy dismissed his justice and energy ministers on Wednesday in response to the scandal.
“The president has taken the toughest steps he could within his powers,” the official added.
What You Should Know
Volodymyr Zelenskyy, Ukraine’s wartime president, has built much of his international credibility on a platform of anti-corruption and reform, making the $100 million scandal involving Timur Mindich particularly sensitive.
Mindich, once closely associated with Zelenskyy through their former entertainment company, is accused of orchestrating a major fraud scheme targeting Ukraine’s fragile energy sector. With key donors such as Germany and institutions like the IMF closely monitoring Kyiv’s reform progress, Zelenskyy’s swift sanctions and ministerial dismissals are aimed at preserving global confidence.
The controversy arrives at a critical moment as Ukraine continues its defense against Russia and seeks sustained international support.
