Financial chaos at the Ukrainian State Film Agency: audit reveals violations worth UAH 856.4 million
3 September 05:06
An audit by the Accounting Chamber has revealed large-scale violations in the use of public funds aimed at supporting cinematography in Ukraine. From 2022 to 2024, UAH 856.4 million was allocated for this area, but a significant part of the expenditures was made without clear economic calculations and proper control. This is reported by "Komersant Ukrainian" with reference to the press service of the Accounting Chamber.
What was checked
As part of the compliance audit “State support for cinematography: what does the state pay for?” The Accounting Chamber assessed how the State Film Agency of Ukraine (Ukrainian State Film Agency) managed funds amounting to UAH 856.4 million in 2022-2024.
The audit covered the regulatory framework, management processes, financing and performance in the field of cinema.
How the funds were spent
Over three years, various entities received UAH 742 million under the State Support for Cinematography budget program. This money was spent on:
- completion of 61 films;
- production of 85 new film projects;
- holding 94 events to popularize Ukrainian cinema.
However, the auditors found that the management of funds was chaotic. Many expenses were included in budget requests without proper economic justification.
Violations and unused funds
The financial audit revealed violations and shortcomings amounting to UAH 80.9 million. Of this amount, UAH 67.5 million was never utilized and returned to the state budget.
In addition, in 19 cases, subsidies totaling UAH 9 million were received by companies that were not even listed in the State Register of Film Producers, Distributors and Demonstrators.
Regulatory gaps and policy chaos
Between 2022 and 2025, the functions of film policy-making were transferred between different structures three times: from the Ministry of Culture and Information Policy to the State Film Agency, and then back to the Ministry of Culture. This made it impossible to create a systemic strategy.
The key problems include
- lack of regulatory framework for the production, distribution and storage of films;
- the absence of the State Film Fund of Ukraine;
- lack of a National Program for the Development of the National Film Industry from 2020 to 2025;
- delay in the 2030 Cultural Development Strategy – it was approved only in March 2025.
Non-transparent work of the State Film Support Council
In 2022-2024, funding decisions were made by the State Film Support Council. According to the auditors, its work was neither systematic nor transparent. Instead of the two competitions envisaged, only one was held a year, without the use of an electronic system and without public announcements on the State Film Agency website.
Despite the low results, the Council members received remuneration. Moreover, in 2024, the previous members of the Council collected UAH 2.4 million in arrears for 2019 through the courts. The courts are still considering cases that could lead to additional expenses of another UAH 3.4 million.
Risks to the state budget
The audit also revealed a lack of effective control over state funding of cinema. There are no deadlines for film production, which creates a risk of losing UAH 55.8 million. Some projects have not been completed since 2017-2019.
