Ukrainian President Volodymyr Zelenskyy on Thursday, November 13, imposed sanctions on a former business associate at the center of a corruption scandal that has sparked public outrage in a nation already strained by nearly four years of war. The move came a day after Zelensky requested the resignations of two cabinet ministers as part of efforts to distance himself from allies implicated in a major money-laundering scheme.
Investigators from Ukraine’s anti-corruption authorities said the scheme involved the diversion of $100 million from the country’s energy sector, a critical industry heavily damaged by sustained Russian attacks that have left millions with severe electricity shortages. Timur Mindich, 46, a businessman long known for his close personal and professional ties to Zelensky, has been identified as the architect of the fraud.
Zelensky’s office announced a decree imposing “personal special economic” sanctions on Mindich and another businessman, Oleksandr Tsukermann. The sanctions freeze their assets, strip them of state honours, and impose strict limits on their business activities and international travel. Both men hold Israeli citizenship and are believed to have already left Ukraine.
Following a call with German Chancellor Friedrich Merz, Zelensky stated, “Ukraine will do everything necessary to strengthen partners’ trust,” without directly addressing the scandal. Mindich’s involvement, however, risks political fallout, as Ukrainian media have repeatedly highlighted his long-standing friendship with the president—a connection Western diplomats say could complicate efforts to demonstrate accountability.
A European diplomat told AFP that Ukraine “needs to be cleaned of corrupt elements,” noting that the case also reflects the growing effectiveness of the country’s anti-graft institutions. Germany, Ukraine’s largest EU donor, urged further reforms, while Hungary’s Prime Minister Viktor Orbán criticised the developments, calling it “a Ukrainian war mafia network with a thousand ties to President Zelensky.”
The International Monetary Fund, which Ukraine is negotiating with for a new loan programme, emphasised that tackling corruption remains a core condition for financial support, as Kyiv continues to depend heavily on foreign aid to sustain its economy and war effort.
A senior Ukrainian official said Zelensky was furious over the revelations and has not communicated with Mindich since the scandal emerged. Mindich previously co-owned Kvartal 95, the entertainment company Zelensky founded during his career as a comedian and actor. “What is there to talk about? He can go to hell,” the official said. Zelensky swiftly dismissed both the justice and energy ministers on Wednesday.
“The president has taken the toughest steps he could within his powers,” the official added, noting that the investigation is ongoing and further actions remain possible.
