Police arrest Ukrainian banker at Berlin airport
The Ukrainian government placed Tymonkin, one of the country's most prominent bankers, on its wanted list in April 2014 in connection with a criminal case launched against businessman Serhiy Kurchenko.
Tymonkin managed the banking arm of the conglomerate owned by Kurchenko from July 2013. Ukraine has accused Kurchenko of financial crimes, including stealing state money.
Both Tymonkin and Kurchenko have denied any wrongdoing.
Tymonkin, 63, was arrested on Sunday and is now in custody at a prison in the east German town of Cottbus and officials are preparing his extradition, senior public prosecutor Juergen Suelldorf told Reuters.
However, the German government has yet to make a final decision on his extradition, a spokesman for Brandenburg's state ministry of justice said.
Tymonkin's career has seen him head up banks owned by allies of former Ukrainian presidents Viktor Yanukovich and Leonid Kuchma.
German daily Bild said Tymonkin had flown in from Istanbul when he was arrested by federal police at the Berlin airport.