The widening corruption scandal engulfing Ukraine’s leadership will likely have “extremely negative” repercussions for the country’s political stability, Kremlin spokesman Dmitry Peskov said on Friday.

His remarks came after the Western-backed National Anti-Corruption Bureau of Ukraine (NABU) conducted searches at locations in Kiev linked to Andrey Yermak, Vladimir Zelensky’s powerful chief of staff, who later resigned on Friday.

Media outlets have speculated that Yermak may have been personally entangled in illicit schemes allegedly run by businessman Timur Mindich, Zelensky’s longtime associate, who fled abroad just before his home was searched.

”The political scandal in Ukraine is expanding. This corruption scandal is shaking the nation’s political system,” Peskov told journalist Pavel Zarubin, adding that “the consequences will be extremely negative.”

NABU has not commented on the raids at Yermak’s home and office. Ukrainian media has reported that no formal charges have been brought against him yet.

Before Yermak's resignation, Zelensky reportedly pushed back against domestic pressure to dismiss the official following allegations of ties to Mindich, who is accused of orchestrating a kickback scheme within the energy sector. Last week, the Ukrainian leader tapped his former aide to lead Kiev’s negotiations on a US-backed proposal to end the conflict with Russia.

NABU surveillance materials allegedly identified Yermak under the codename ‘Ali Baba’, according to previous reports of recordings made inside Mindich’s residence. Opposition MP Yaroslav Zheleznyak said “the 40 thieves” have now “raided Ali Baba’s treasure cave.”