Ukraine’s president just watched his second-most powerful aide resign in disgrace while sitting on a powder keg of $100 million in stolen wartime funds, and nobody’s talking about what this means for the peace deal that could end the war.
Quick Take
- Andrii Yermak, Zelenskyy’s chief of staff and the architect of government policy, resigned on November 28, 2025, amid a sprawling corruption scandal involving embezzled public funds
- Operation Midas, an anti-corruption investigation, exposed approximately $100 million diverted from Ukraine’s energy sector through fraudulent contracts during active military conflict
- The scandal strikes at the worst possible moment—while Ukraine negotiates peace terms with the Trump administration and faces daily Russian bombardment
- Zelenskyy’s centralized power structure, designed for wartime efficiency, has apparently enabled rather than prevented systemic corruption at the highest levels
The Timing Could Not Be Worse
Yermak’s departure exposes a brutal reality about how power operates under pressure. When Zelenskyy consolidated authority around his office during Russia’s invasion, the stated rationale was clear: wartime demands swift decision-making without bureaucratic friction. What emerged instead was a closed circle where oversight vanished and accountability became optional. The $100 million embezzlement scheme didn’t happen in a vacuum—it flourished in the shadows of concentrated power.
What Makes This Different From Typical Scandals
This isn’t garden-variety corruption. The scale matters. The timing matters. The people involved matter. Yermak wasn’t some mid-level functionary—he was described as “the brains of government,” the intellectual force behind policy decisions. His resignation removes the central node in Zelenskyy’s decision-making apparatus precisely when Ukraine needs stable, coherent leadership. Multiple cabinet officials face charges. The investigation continues. The damage spreads.
Ukraine is simultaneously fighting for its survival against Russian missiles and negotiating the terms of its potential survival with the Trump administration. In this context, a corruption scandal isn’t just an embarrassment—it’s a strategic vulnerability. It weakens Ukraine’s negotiating position, provides Russia with propaganda ammunition, and creates doubt among Western allies who’ve made anti-corruption commitments a condition of support.
The Negotiating Position Just Shifted
Consider the leverage dynamics. Ukraine needs Western military aid and financial support to survive. The Trump administration holds significant leverage over Ukraine’s peace settlement. Now add a corruption scandal that undermines Ukraine’s credibility as a reformed, Western-aligned democracy. The math becomes obvious. Trump can point to the scandal and justify pushing “hard for a peace deal on terms many perceive to be too favorable to Russia.” Ukraine’s moral authority erodes. Its negotiating position weakens. The terms it accepts become less favorable.
Zelenskyy attempted damage control in his evening address, stating he needed to “preserve our internal strength” and prevent distractions from Ukraine’s core mission. The phrasing reveals the calculation: acknowledge the problem, remove the liability, move forward. But removing Yermak doesn’t restore credibility or undo the investigation. It signals panic.
The Concentration of Power Problem
Here’s what demands scrutiny: the system that enabled this corruption was supposedly necessary. Martial law. Centralized authority. Limited parliamentary oversight. These measures were justified as essential for wartime effectiveness. Yet they created the conditions where systemic embezzlement flourished. The concentration of power around the presidential office meant fewer checks on executive decision-making and less transparency in government operations.
This raises uncomfortable questions about governance during crisis. When democracies centralize power for efficiency, they often discover too late that efficiency and accountability aren’t always compatible. Ukraine needed swift decision-making. It got swift decision-making. It also got massive theft from the energy sector—the very sector it desperately needed to repair infrastructure damaged by Russian attacks. Resources meant to restore power to civilians were diverted to private enrichment.
What Happens Next
The investigation continues. More officials face potential charges. Zelenskyy must find a replacement for Yermak while managing an ongoing war, international negotiations, and a credibility crisis. The Trump administration watches and calculates. Russia observes Ukraine’s internal chaos and adjusts its negotiating strategy accordingly. Ukraine’s Western allies question whether their aid is being properly stewarded.
The corruption scandal doesn’t just damage Zelenskyy’s government—it damages Ukraine’s entire negotiating position in a moment when every advantage matters. And that’s precisely why this story demands attention from anyone watching how nations navigate the intersection of survival, power, and accountability.
Sources:
Ukraine peace talks shaken up by resignation of Zelenskyy’s top aide in corruption probe
