The year 2026 began with a significant reshuffle of Ukraine’s key institutions, including the Office of the President, the Ministry of Defence, and law enforcement agencies. In November 2025, President Volodymyr Zelenskyy dismissed Andrii Yermak as Head of the Office of the President. In early January, Zelenskyy appointed Kyrylo Budanov—Head of the Main Intelligence Directorate of the Ministry of Defence of Ukraine—as the new Head of the Office. Budanov’s First Deputy in this role is Serhii Kyslytsia, former First Deputy Minister of Foreign Affairs and Permanent Representative of Ukraine to the United Nations.
“The appointment of Kyrylo Budanov can be seen as a signal of a stronger focus on international issues and negotiations. It also indicates a high level of trust from President Zelenskyy in sensitive and confidential matters. At the same time, it reflects an effort to concentrate the negotiation process within the Office of the President: those who conduct negotiations must be part of the president’s team. In this context, Budanov emerges not only as an intelligence chief but also as a political figure whose public involvement implies a sharing of responsibility for the outcome of negotiations,” said Olena Tregub, Executive Director of NAKO.
Changes have also taken place at the Ministry of Defence. Mykhailo Fedorov, Deputy Prime Minister and Minister of Digital Transformation of Ukraine, has been appointed as the new Minister of Defence. His predecessor, Denys Shmyhal, has been offered the position of First Deputy Prime Minister and Minister of Energy.
“None of the previous defence ministers managed to reform this large and outdated institution. Some tried, some did not. The system remains cumbersome, bureaucratic, and resistant to change. During wartime, the situation has improved, but not fundamentally. Replacing a minister just six months after the previous appointment is not an ideal scenario. However, Fedorov himself is a strong candidate—dynamic and focused on results and reforms. At the same time, we should not expect quick changes: the Ministry of Defence is extremely complex to manage, and Fedorov will need time to understand its internal logic,” Tregub noted.
In addition, the Head of the Security Service of Ukraine (SBU), Vasyl Maliuk, has submitted his resignation. Yevhenii Khmara, Head of the SBU’s Special Operations Center “A,” will temporarily serve as Acting Head. A new head is also expected to be appointed to the State Border Guard Service of Ukraine.
Andrii Yermak, often referred to as the “second most powerful person in the country,” left his post as Head of the Office of the President amid the so-called “Mindich case.” The corruption scheme in the energy sector allegedly involved businessman Tymur Mindich, former Minister of Energy Herman Halushchenko, and former Deputy Prime Minister Oleksii Chernyshov. The “Mindich case” also has a military dimension, including a body armor procurement case, which is examined in NAKO’s analysis of corruption risks in rear logistics procurement.