Kyivmiskbud announced a restructuring of its debts to contractors: 24 projects totaling 500,000 square meters are awaiting completion.
Kyivmiskbud announced the preparation of a plan to restructure its debts to contractors. The stated goal is to stabilize the company's financial position and resume work at frozen construction sites. These sites include 24 projects totaling over 500,000 square meters.
The Kyivmiskbud press service announced the plans. Specifically, the company's supervisory board chairman, Vladislav Andronov, noted that the proceeds from the additional share issue should be used to restore the company's core operations, primarily for the construction of residential complexes.
Such measures are reminiscent of the situation that once surrounded the controversial developer. Kyivmiskbud is still unable to complete the projects transferred to it from Ukrbud. The company explained that the reason for this is a significant funding shortfall of approximately UAH 2 billion.
The city is the main shareholder of Kyivmiskbud. Its budget allocates funds to increase the company's authorized capital, but according to the company, this is still insufficient to fully restore operations.
Kyivmiskbud now claims the restructuring mechanism is a “necessary step for financial recovery.” They note that this will allow funds to be used to restore construction rather than pay off old debts. The company also emphasized that the general contractors are ready to negotiate and resume work once the restructuring terms are agreed upon.
Kyivmiskbud currently operates 24 construction sites, where over 120 residential buildings in various stages of completion have been erected. The total area of unfinished buildings exceeds 548,000 square meters.
Despite claims of financial recovery, the situation in which a major developer is forced to announce a restructuring of its debts to contractors bears a disturbing resemblance to the period preceding the collapse of Ukrbud and the subsequent transfer of its problematic projects to the management of Kyivmiskbud.
Thus, back in June 2020, the Cabinet of Ministers ordered Kyivmiskbud to undertake the completion of 18 residential complexes previously owned by the state-owned corporation Ukrbud. Work on these projects had been frozen due to Ukrbud's extensive financial problems and accusations of embezzlement of funds invested by approximately 13,000 families.
Before Russia's full-scale invasion of Ukraine in 2022, Kyivmiskbud had commissioned 10 of its 18 residential complexes. In March 2023, the company appealed to the Kyiv City State Administration for UAH 1 billion, stating that it needed UAH 1.7 billion to fully complete all Ukrbud projects (taking into account inflation and rising material prices).
A journalistic investigation prevented the city from receiving these funds in 2023. In May 2023, Bihus.Info published information indicating that Kyivmiskbud may have been paying billions of hryvnias to companies close to its management.
However, the Kyiv City Council's temporary control commission in December 2023 found no violations in Kyivmiskbud's operations and recommended increasing its authorized capital from the city budget.
In October 2024, the Kyiv City Council decided to provide additional funding for Kyivmiskbud by purchasing “additional” shares from the city budget and again requested compensation from the Cabinet of Ministers in the amount of UAH 2.56 billion. The share placement will run from October 1 to November 28, 2025.
Kyivmiskbud presented several “scenarios” for completing the project, according to which the company would need to allocate between $10.2 million and $272.4 million to cover the deficit. Experts called these scenarios “mythical,” as such funding from the state budget is unlikely during the war.
Meanwhile, in 2024, it became known that Kyivmiskbud had left tens of thousands of families homeless, leaving residential complexes in which over 40,000 Ukrainians had invested unfinished. Some of the residential complexes couldn't even be considered “unfinished,” as work had never begun.
Investors in Ukrbud and Kyivmiskbud held large-scale rallies. They protested the delays in construction of residential complexes, particularly the Kurnatovskyi residential complex in the Dniprovskyi district of the capital.
