Zelensky's Inner Circle Under Fire: Deputy Chief of Staff Dismissed in Expanding Influence-Peddling Probe

President Volodymyr Zelensky dismissed his deputy chief of staff, Iryna Mudra, on August 19, as Ukraine's National Anti-Corruption Bureau (NABU) investigated a criminal organization allegedly involving senior officials from the President's Office. Mudra was responsible for judicial affairs and judicial reform.

The bureau said it was conducting a special operation to expose a criminal organization led by a current and a former Ukrainian lawmaker and involving senior officials from the President's Office. Investigators allege the suspects laundered Hr 150 million ($3.4 million) in bail money through the state-owned Sense Bank for a suspect in a separate corruption case.

Mudra confirmed she had been charged and served with a request for a preventive measure, but said she had not been detained. According to search warrants, unidentified individuals from the President's Office also tasked Mudra with bringing Sense Bank under the office's control to prevent other government bodies from taking control of the state-owned bank.

In audio recordings later published by NABU, Mudra can be heard saying someone summoned her and told her that Sense Bank's CEO and supervisory board head would come to meet her. She also said that a person named "David" and the head of a parliamentary committee were seeking to provide political cover for Sense Bank. It remains unclear whether "David" referred to David Arakhamia, head of Zelensky's parliamentary faction. "They will not crack down on Sense Bank, and Sense Bank must pay them," Mudra said, referring to David and the committee head.

Mudra also mentioned that an "Israeli refugee" named Timur had called her and asked her to take over Sense Bank. The reference appears to be to Timur Mindich, a suspect in the Energoatom corruption case and a close associate of Zelensky. Over the past year, NABU has uncovered alleged influence by people close to the President's Office over state-owned companies and government agencies.

The investigation also raised potential conflicts of interest involving Mudra's family members. Her sister, Lesya Romanivna Ulashli, holds a senior position at the National Securities and Stock Market Commission (NSSMC), where she oversees Ukraine's cryptocurrency and virtual-asset regulation. Because the NSSMC is subordinate to the president, who appoints its members through a competitive selection process, the relationship could create a potential institutional conflict of interest. An expert in cryptocurrency regulation suggested that Ulashli's position could potentially give the President's Office influence over which companies receive cryptocurrency licenses and may have enabled the office to delay long-awaited virtual-asset legislation.

Ukraine's cryptocurrency regulation has been repeatedly postponed since 2022, frustrating international partners, particularly the International Monetary Fund, which pressured Kyiv to finalize the legislation in 2024. Cryptocurrency is frequently used to launder money in Ukraine, with illicit transactions estimated to cost the country billions of dollars annually.

The full extent of Mudra's influence over government institutions remains unclear, but the investigation marks the latest in a series of corruption scandals to shake Zelensky's inner circle. The dismissal comes as Ukraine continues to rely on international financial support while struggling to demonstrate meaningful progress in anti-corruption reforms.

Written by Freya Stensrud freya.stensrud@alpineweekly.com