KYIV, Ukraine — President Volodymyr Zelenskyy’s former chief of staff has been named by two Ukrainian anti-corruption watchdogs as a suspect in a major graft probe, bringing the man who once wielded enormous influence in the country’s wartime planning under direct scrutiny.

Andrii Yermak is officially suspected of taking part in an alleged 460-million hryvnia ($10.5 million) money-laundering scheme, according to Ukraine’s National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office.

They said that the Ukrainian leader is not under suspicion in the case.

The move is a step short of formally charging Yermak, who resigned in November. He was the country ’s lead negotiator in talks with the U.S and left during the scandal that brought the biggest threat to Zelenskyy’s government since the Russian invasion.

Yermak remains a deeply controversial political figure in Ukraine. As the head of Zelenskyy’s office he played a central role in the presidential administration, managing relationships with the U.S. and other Western countries, and even developed possible scenarios for a ceasefire with Russia.

His official implication in the investigation brings the probe closer to Zelenskyy, intensifying scrutiny over the president’s awareness and potential involvement.

The first hearing was held in a Ukrainian court this week. On Thursday the court ordered that he be held in pretrial detention, with bail set at 140 million hryvnias ($3.2 million).

Here is what to know about the ongoing corruption scandal.

Yermak met Zelenskyy over 15 years ago when he was a lawyer venturing into the TV production business and Zelenskyy was a famous Ukrainian comedian and actor.

He oversaw foreign affairs as part of Zelenskyy’s first presidential team and was promoted to chief of staff in February 2020. In that position Yermak occupied the country’s second most consequential public post, frequently acting as the president’s gatekeeper. He is widely believed to have chosen all top government appointees, including prime ministers and ministers.

Zelenskyy deeply trusted Yermak, taking him on every trip abroad since Russia’s invasion in February 2022. When the corruption scandal broke in late 2025, Zelenskyy initially resisted immense public pressure to replace Yermak.

Yermak is under suspicion of money laundering tied to the construction of a luxury construction project outside of Kyiv. His attorney called the notice of suspicion groundless and denied Yermak’s involvement in the scheme.

Anti-corruption watchdogs, meanwhile, allege that the project was used to launder money through a network of shell companies. They claim Yermak and a group of associates planned to construct four private mansions and other luxury facilities.

During the first hearing on Tuesday, Yermak said that he was innocent of the charge and that he owns “only one apartment and one car.”

The case is part of a broader probe that was revealed last year by the anti-corruption watchdogs.

The $100 million kickback scheme implicated officials and associates close to Zelenskyy and was made public in November, setting in motion Yermak’s departure from the presidential administration.

The investigation implicated high-ranking officials with pressuring contractors to pay up to 15% kickbacks in exchange for construction business with Energoatom, the state-owned nuclear energy company. It involved over 1,000 hours of wiretaps of individuals using code names.

After the scheme was made public, Ukraine’s parliament approved Zelenskyy’s dismissal of the energy and justice ministers. His office imposed sanctions on close associates who were said to be involved, including Tymur Mindich, a partner in a media production company that Zelenskyy was a co-owner of before he became president. Mindich has reportedly fled the country.

It remains to be established by the prosecution whether some of the funds Yermak is accused of laundering may have originated from the Energoatem scheme.

Though not directly implicated, the investigation and the naming of a close ally and former chief of staff is a potential threat to Zelenskyy’s credibility.

Endemic corruption is one of the obstacles slowing Ukraine’s admission to the European Union, which Zelenskyy is actively seeking as well as continued Western support against Russia’s invasion.

The probe has also drawn in current officials involved in peace negotiations with the United States. Rustem Umerov, head of Ukraine’s National Security and Defense Council and a key figure in U.S.-led diplomatic efforts, has been questioned as part of the investigation.

Zelenskyy’s presidential term officially ended in May 2024, but he has continued to govern without elections, saying they cannot be held while Russia is occupying a fifth of the country.

His critics say it’s also important to bolster credibility with Ukraine’s Western allies, whose support is vital to the war effort and in eventually negotiating an end to the conflict.