Zelenskyy’s former top aide has been arrested as the graft probe expands in Ukraine
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Former Ukrainian president Volodymyr Zelenskyy was taken into custody Thursday on charges of money laundering, part of a crackdown on money laundering that fueled political tensions during the war.
Investigators on Monday named Andriy Yermak as the official suspect in the emerging, multi-episode case that has dragged on for months in Ukraine and fueled anger among war-torn people over high-level corruption.
His arrest represents a deeper crackdown on the president’s efforts to crack down on crime as Kyiv strives to become a member of the European Union.
The anti-corruption court also set bail at US$3.2 million, which will allow Yermak – who was Zelenskyy’s chief of staff and has denied the allegations against him – to be released pending a final decision in his case.
“I don’t have that kind of money, my lawyer is going to work with friends and people I know [to raise the money for bail],” Yermak told reporters after the court’s decision.
“My legal team will file an appeal. We will use all legal means to seek justice and truth.”
The US agreement between Russia and Ukraine is expected to expire on Monday. Both sides accuse each other of breaking the law. Journalist Emmanuelle Chaze reports from Kharkiv, where she says the sound of air raid sirens is constant.
Anti-corruption agencies accuse Yermak of being involved in a criminal ring that received an estimated $10.5 million in US dollars from the construction of high-rise buildings outside the capital Kyiv.
This case is part of the so-called “Midas” scheme, which was revealed in November last year, the main suspect of which is Zelenskyy’s business partner Timur Mindich.
Authorities have accused Mindich of leading a scheme to refund $100 million to the US in the energy sector – charges that hit Ukraine at a critical time in its war with Russia. He denied wrongdoing and fled to Israel.
The case against Yermak also links Mindich with another Zelenskyy, former Deputy Prime Minister Oleksiy Chernyshov, in the dumping operation in the Kyiv area. Chernyshov, who faces charges in a separate episode, has also denied wrongdoing.
The scandal resurfaced even before the charges against Yermak were revealed, after Ukrainian media and opposition lawmakers leaked what they described as Mindich’s wiretap documents discussing developments in Kyiv.
In another clip, Mindich and an unidentified woman are said to be heard discussing buildings, as well as people named “Andriy” and “Vova” – this is an informal short form of the name “Volodymyr.”
Reuters could not independently verify the content, and there is no evidence implicating Zelenskyy. The president’s office did not respond to a previous request to comment on the issue, and his communications advisor said this week that it is too early to comment on Yermak’s issue.
The charges against Yermak are unlikely to pose an immediate threat to the president, who cannot be formally prosecuted while in office, but could lead to reputational damage if he runs for re-election after the war, some analysts say.
Yermak was widely seen as the second most powerful figure in Ukraine after Zelenskyy until he resigned last year, part of a government shake-up aimed at restoring trust in the presidency.
Exercising a strong influence in all aspects of Ukrainian politics despite holding an unelected position, the former film producer often appeared at the president’s side at public events,
He was also Kyiv’s lead negotiator in the US-backed peace talks with Russia.
Yermak’s ouster has put a new focus on what critics have described as a major power focus on the president’s administration and based primarily on loyalty to Zelenskyy, who has dismissed suggestions of impeachment.
“All this is the result of … not wanting to rely on experts and expand the circle [of candidates] as it should be done especially in times of war,” opposition lawmaker Iryna Herashchenko said on Ukrainian television on Wednesday.
In the meantime15:14What you need to know about corruption in Ukraine
Two weeks ago, anti-corruption investigators in Ukraine revealed allegations that men close to President Volodymyr Zelenskyy received $100 million in kickbacks through a state energy company. The list includes a friend from Zelenskyy’s comedy days, who ran his production studio. Tim Mak, editor of Counteroffensive, notes that people are angry in the country because corruption is a driving force in Ukrainian politics. Simon Shuster, Zelenskyy’s biographer, says the president has a history of giving people a second chance, but amid a scandal like this, that could come back to bite him.
