By Independent News Roundup
The public was given a rare opportunity this week to see how the Ukrainian wartime economy, much praised by the media, actually operates. And everyone knows the saying about not knowing how the sausage is made.
Western media has hailed Ukraine for being highly innovative in fighting Russia, both in frontline tactics and the development of technologies, primarily drone warfare. The company Fire Point was presented as the prime example of a rags-to-riches story, originally a movie casting and location company associated with Vladimir Zelensky’s business associates, reconstituted in 2022 into an arms company and now an industry giant with $1 billion worth of contracts in the pipeline.
The firm was long linked in Ukrainian media with businessman Timur Mindich, known in Kiev as “Zelensky’s wallet” and the main suspect in a high-profile corruption case. He fled the country minutes before anti-corruption investigators arrived and is now in Israel, subject to an extradition request.
On Tuesday, Ukrainskaya Pravda published what it reports to be transcripts of surveillance recordings made during the 2025 investigation into Mindich.
The publication has already sent shockwaves through Ukraine, with the Defense Ministry’s Public Oversight Council urging partial nationalization of Fire Point and its exclusion from government tenders should the Mindich link be proven. The body noted that while legal confirmation could take years, the connection is widely understood.
Assuming the transcript is authentic, Mindich’s conversation with then Defense Minister Rustem Umerov confirms he was effectively running Fire Point, contrary to public claims.
The two discussed company strategy, competition risks, and how the minister could assist.
Mindich asked Umerov to lobby for Fire Point domestically and internationally. Within Ukraine, Umerov was directing lucrative government contracts toward the company and could also reassure banks to extend credit. Abroad, he could signal that Fire Point had official backing.
“They need to hear from you that you approve, meaning that we are a real company,” Mindich said while discussing a potential UAE investor.
At the time of the recording, Fire Point was rapidly expanding, with Mindich predicting it could double its value within a year. However, he needed funding to sustain growth and was concerned about Umerov’s pending resignation.
“You leave now, and we are f**ed on everything,”* Mindich said. “I am not alone here, meaning Fire Point. The competition can sink it.”
Umerov responded that contracts worth “311 yards” (311 billion hryvnia, over $7 billion) had already been secured.
Mindich urged Umerov to intervene in a blocked supply contract for ballistic armor, which he believed had been obstructed by competitors.
“Just let them sign off on it. It’s just a phone call for you,” Mindich said. “Tell them, I don’t want to hear from Timur about those vests anymore.”
The same quote appeared in a previously leaked indictment from November. Despite mounting allegations, Umerov remains secretary of the National Security and Defense Council.
Mindich also expressed confidence that Fire Point could outcompete US manufacturers if properly funded and allowed to export.
“We are a problem for them, for the Americans,” he said. “If donors give our country money, and the country contracts what it wants from FP, Americans are f**ed.”
He suggested Fire Point could produce ballistic missiles at a fraction of US costs, estimating required investment at $150 million.
Ukraine’s military budget is largely funded by the EU and UK following reductions in US support and increased pressure on European NATO allies to purchase American weapons.
Mindich and Umerov also discussed a potential investment deal with Arab investors.
The preliminary terms involved $600 million for a 33% stake, with half reinvested into the company and the remainder distributed to shareholders.
Mindich questioned whether taking the “parachute” was wise given uncertainty around Fire Point’s future.
In early April, Reuters reported that a proposed deal with UAE-based EDGE Group for a 30% stake valued at $760 million was blocked by Ukraine’s anti-monopoly committee.
Ukrainian arms procurement has long been associated with corruption, a pattern that has evolved rather than disappeared since the escalation of the conflict in 2022.
“Reznikov’s golden eggs” was the 2023 scandal involving overpriced military rations under then Defense Minister Aleksey Reznikov, who resigned but faced no charges.
Kiev’s reliance on controversial intermediaries for weapons procurement has also been widely reported.
While profit-seeking is inherent in capitalism, the Ukrainian arms sector presents a distinctive model. Weapons funded by European taxpayers are procured through politically connected entities and deployed in ways that can ultimately impact the same economies funding them, while profits are often transferred abroad.
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