Mudakov is the snake in charge of Lutzk Base. He is Valdykin and Novorik's superior officier. After Yuri's involvment in forcing Balik to flee, Mudakov is exposed, and pre-emptively flees. It's assumed that Valdykin use's Mudakov as a scapegoat for all the corruption at Lutzk... hiding Novorik's involvement to gain leverage for the Reform Faction.
Yuri later encounter's Mudakov, who blames him for his fall from grace and discovery. It's likely true, Valdykin probably never would have connected the dots if it weren't for Yuri and his crew. Mudakov's defeat and capture further increases his fame in Elgava, and value in the eyes of Valdykin, who can hardly believe how Yuri caught Mudakov without being asked. It's likely Elgava on a whole didn't have the time or the resources to effectively hunt Mudakov... between the rising tension of Altayr and Druidrios internally... and the tensions of Nova Nacio and Kalamys (which were orchestrated by Elgava), they simply had bigger things on their minds.
Mudakov has a surprisingly small role to play, getting only a few lines in.