After a week of chaos, scandal and protest, Ukrainian President Volodymyr Zelenskiy acknowledged the effectiveness of sacked ex-Defence Minister Fedorov and announced his appointment to an expanded national security role with real powers.

The political drama surrounding Ukraine’s government reshuffle has taken a fresh turn, potentially reshaping the balance of power within the administration.

Following a wave of public debate, a press conference by Fedorov a day after he was dismissed as part of a surprise government reshuffle, caused widespread debate and tension in Bankova as thousands took to the streets to protest against the decision. In his six months on the job, the former tech entrepren€showed himself to be highly effective and began to turn the tide on the battlefield – something he himself pointed out with a list of 22 achievements he posted online in his farewell message on social media.

Under pressure from volunteer groups, business leaders of Ukraine's western allies, Zelenskiy changed his stance again and publicly praised Fedorov’s record at the Ministry of Defence on July 18, announcing that he would return to government in a new more powerful role. At the end of last week, Zelenskiy offered Fedorov a job as advisor, but that was refused as Fedorov said he wanted the authority to continue his reforms of the venally corrupt and highly inefficient Defence Ministry.

Zelenskiy admitted the technological advances made by Ukraine’s armed forces during Fedorov’s six months in office had been exemplary, highlighting the expansion of drone programmes and progress on the country’s domestic ballistic missile programme. Amongst other initiatives, Fedorov is responsible for expanding Ukraine’s medium- and long-range drone capacity that has wreaked havoc on Russia’s logistical support of the frontline and hit all 30 of Russia’s oil refineries, causing a country-wide fuel crisis.

The Presidential Office said an agreement on Fedorov’s future had been reached after he rejected a conventional advisory position, insisting that he needed executive authority if he was to continue his military reforms.

In related news and another sign of how deeply the reshuffle has shaken the government, it was reported that Zelenskiy is also open to replacing Ukraine’s commander in chief General Oleksandr Syrskyi “if a suitable candidate can be found. While officially Zelenskiy blamed Fedorov’s failure to solve the recruitment crisis as the reason for his dismissal, it is an open secret that a personality clash between Fedorov and Syrskyi was to blame for his departure. The two men are from different generations and have different ideas on how to fight a war. Fedorov reportedly lobbied for Syrskyi’s removal, publicly complaining that the commander was actively blocking many of his initiatives.

During a working meeting with the new Cabinet on July 18, led by the newly appointed Prime Minister Serhii Koretskyi, Zelenskiy stressed the importance of preserving the capacity of Fedorov’s reform team.

He said disagreements with the military leadership and tensions between state institutions should not be allowed to overshadow reforms that had already produced tangible results on the battlefield.

According to people close to the Presidential Office, Zelenskiy accepted that the original plan to remove Fedorov from the executive because of disagreements with the General Staff had been a “tactical mistake” that generated unnecessary public tension.

“Mykhailo Fedorov has proven that he can break through bureaucratic barriers and create asymmetric advantages against the enemy. His dismissal as minister during the government’s restructuring was a procedural step, but he remains an integral part of our team. The state highly values his contribution, and we have prepared a role where his full potential can be realised without the limitations of a traditional ministerial office,” Zelenskiy said.

The statement appeared intended to end speculation over Fedorov’s future and contain the political fallout from his removal.

A special NSDC mandate

The key change is that Fedorov returns to the government with real powers over military reforms and policy. Because the parliamentary approval process for the new Cabinet involved a complex series of personnel changes, including the appointment of Yevhen Khmara as acting defence minister, the administration has now created a more flexible position for Fedorov.

According to preliminary information from presidential advisers, Fedorov will be appointed to Ukraine’s National Security and Defence Council as chairman of a newly created Defence MilTech and Strategic Planning Coordination Council.

Reporting directly to the president, he is expected to receive a broad mandate covering the coordination of defence technology projects, including the Brave1 platform, long-range unmanned systems and the missile programme.

The new structure would give him direct oversight of these programmes while allowing him to bypass some of the intermediate approvals required within the Ministry of Defence and the General Staff.

Crucially, Fedorov will continue his fight against corruption at the ministry as he has been given responsibility for auditing military procurement and developing a transparent digital system to monitor defence logistics and reduce corruption risks. During the initial audit Fedorov ordered on becoming minister he found UAH300bn ($6.6bn) of “savings” from “overspending” the government could make by reorganising the procurement process.

A further part of the role would involve direct negotiations with Western governments and investors, with Fedorov serving as the administration’s principal representative for attracting foreign investment into Ukraine’s high-technology defence industry. Fedorov is also credited with actively expanding the so-called Danish model of cooperation with European governments and companies to produce materiel for Ukraine with joint ventures.

The decision should put a bookend on the expanding government appointment scandal. The news that Zelenskiy and Fedorov had reached an agreement, and that the former minister would return with potentially broader powers, was greeted with relief by some political figures, volunteer groups and representatives of the business community.

The arrangement appears to have contained the immediate crisis surrounding Fedorov’s departure, while allowing Zelenskiy to retain one of the administration’s most prominent reformers without reopening the parliamentary struggle over the composition of the Cabinet.