Kyivmiskbud has a chance to resume construction, and investors have a chance to get apartments
22 September 2025 14:37
Private investors who have invested in 12 Kyivmiskbud and 12 Ukrbud projects and are waiting for their completion have hope that they will finally receive financed apartments. What is the source of this hope and how are they planning to complete these projects?
Forty thousand investor families, including about 13 thousand military personnel, are waiting to receive housing in 24 objects for which Kyivmiskbud is currently responsible for completion.
Why private investors are left without housing
The impossibility of completing these 24 objects is officially explained by the unsatisfactory financial condition of Kyivmiskbud.
“The problematic situation around Kyivmiskbud has developed as a result of a prolonged downturn in the construction industry caused by the war, macroeconomic instability and uncertainty in the primary residential real estate market. At the same time, the situation was complicated by the obligations imposed on PrJSC HC Kyivmiskbud in 2020 to complete the construction of residential complexes that the original developer, the Ukrainian State Construction Corporation Ukrbud, was unable to build,” this explanation, for example, is contained in a letter of response from the Kyiv City State Administration to the
. [Kommersant]
As a reminder, we are referring to the decision of the Cabinet of Ministers of Ukraine dated June 17, 2020, No. 772-r, which obliged the Kyivmiskbud Holding Company to complete the Ukrbud residential complexes. By the way, the obligation was imposed without the consent of the company’s largest shareholder, the Kyiv City Council, which currently owns 80 percent of the company’s shares.
According to the auditing firm Baker Tilly Ukraine, the total planned loss of the company associated with the completion of Ukrbud’s projects is UAH 2.28 billion at 2023 prices. This was followed by the coronavirus pandemic, then Russia’s full-scale invasion of Ukraine, which resulted in a decline in development activity in the market and a significant decrease in demand for housing. And the auditors’ conclusion: the developer was on the verge of survival for reasons related to external circumstances. Then the construction projects were suspended.
Tetiana Smiyan, a representative of the initiative group of private investors, tells us what is happening at the problematic sites.
“Now the completion is almost at the zero stage, because work at all sites has completely stopped due to the lack of funding from Kyivmiskbud. There are problems with security, with paying for electricity – it depends on the specific residential complex. According to the information provided to us as investors, the facilities are at the level of survival, meeting the necessary needs with thousands of parking lots, areas that have already been commissioned and have not yet been sold: either they rent them out or sell them little by little. At the moment, everything is standing still because there is no funding,” states Smiyan.
And so it was private investors who made a lot of efforts to get this funding.
A decision that renewed hopes for the completion of housing
At the end of September last year, investors who had invested in Ukrbud and Kyivmiskbud facilities held a rally and blocked Khreshchatyk in Kyiv, trying to encourage the city authorities to act in this way. A month later, the Kyiv City Council passed a resolution “On Stabilizing the Financial Condition of PJSC HC Kyivmiskbud by Increasing the Authorized Capital.”
This decision provided for an increase in the authorized capital of the joint-stock company through an additional issue of shares at the expense of contributions in the amount of UAH 2.56 billion, which should have allowed the construction of residential complexes to resume.
At the same time, the Cabinet of Ministers of Ukraine was also asked to consider compensating Kyivmiskbud for losses of UAH 2.28 billion related to the completion of Ukrbud’s facilities.
The KCSA acknowledges that “the active position of investors played an important role in the process of making key decisions aimed at stabilizing the activities of Kyivmiskbud.”
“In the period from March to December 2024, the Commission on resolving problematic issues related to the activities of PrJSC HC Kyivmiskbud worked under the executive body of the Kyiv City Council (Kyiv City State Administration), involving specialized specialists and representatives of investor initiative groups. Thanks to its well-coordinated work, we managed to identify effective mechanisms that can help stabilize the financial condition of PrJSC HC Kyivmiskbud and restore the active phase of construction,” the KCSA said.
Tetyana Smiyan, a representative of the initiative group of private investors, explains what other options were offered.
“The commission worked for a year, and its work was even extended a bit on the initiative of the mayor. We considered all possible options. For example, lending. But the city does not have such a budget item as financial assistance or any kind of lending. All banking institutions refused, because, of course, they refuse to take square meters, whether existing or non-existent, in short, illiquid now, as collateral. Therefore, the only way to capitalize was through the shareholder, the main one being the city. Although there was another option: investors raise funds, in those complexes where the readiness is 99.9%, they raise additional funds, transfer them to the account of Kyivmiskbud, under a letter of guarantee. Because each investor has their own math – to rent an apartment or to move into their own housing, that is, they raise some additional funds under a letter of guarantee that the funds will be used to perform a certain amount of work,” explained Ms. Smiyan.
In the end, both investors’ representatives and Kyiv city deputies and officials agreed on the additional capitalization of Kyivmiskbud and their readiness to fight for UAH 2.28 billion from the government.
A decision that reinforced hopes for the completion of housing
In early August this year, another step was taken in the process of capitalizing Kyivmiskbud. The National Securities and Stock Market Commission started an administrative procedure to register the issue of shares and approve the prospectus of the Holding Company Kyivmiskbud PrJSC. Announcing this, Vladyslav Andronov, Deputy Head of the Kyiv City State Administration for Self-Governance and Chairman of the Supervisory Board of Kyivmiskbud, explained that after the completion of this process, the community’s share in the company’s authorized capital will increase from 80% to approximately 99.87%, which will ensure maximum control over the company in the interests of Kyiv residents.
“The launched recapitalization procedure is a key tool for financial stabilization and a step towards a complete reboot of the company, which will ensure the structural transformation of Kyivmiskbud and restore its status as the leader in the country’s construction industry. At the same time, we continue to make changes within the company: we have defined the areas of responsibility of the members of the Board, and are implementing the best practices of project management,” Vladyslav Andronov said.
Tetyana Smiyan, representative of the initiative group of private investors, calls the expected decision of the National Securities and Stock Market Commission the key at this stage
“Now we are approaching a certain stage, a key one, which will guarantee us that the procedure in the commission was carried out properly, and the city, as a shareholder, will be obliged to pay for the shares. And Kyivmiskobud will be able to start acting with them when it receives the funds on its account. We raised the question of the timeframe for the realization of these funds. It is approximately two years, due to the construction work that is planned to be carried out with these funds. That is, approximately from the moment the funds are received, they must be utilized within two years, and what is planned to be done in a particular residential complex must be done,” explained Tatiana Smiyan.
What will the funds from the capital’s treasury be enough for?
Back in the fall of last year, at a meeting of the Kyiv City Council, where a decision was made to recapitalize Kyivmiskbud, the then head of the company, Vasyl Oliynyk, said that a plan had been prepared to ensure the effective use of the allocated funds.
“The goal is to allocate the funds to projects that maximize investment and minimize risks. Then, we will involve objects that have a high investment attractiveness. The plan envisages revenues of at least UAH 1.4 billion from 2024 to 2027 under realistic scenarios and possible cooperation with government agencies to ensure uninterrupted funding and guarantees of ongoing work,” the official explained at the time.
In a nutshell, the company’s strategy is to restore operations and investor confidence. This was stated at the recent August meeting of the Kyivmiskbud management with initiative groups of investors. Tetyana Smiyan, a representative of the initiative group of private investors, spoke in more detail about the announced plans to complete the residential complexes.
“In fact, only a small number of residential complexes are included in the UAH 2.56 billion allocated for completion through the company’s additional capitalization. There are even complexes that are partially included. For example, my complex Urlivskyi-1. We have 7 houses in the project, and only 2 houses are planned to be completed as part of this additional capitalization. In total, there are about 5-6 residential complexes that are included in this list. We chose them so that they had a high degree of readiness and were economically feasible,” says Tetiana Smiyan.
She also shared her expectations from the implementation of such a plan for the completion of residential complexes.
“What we expect. The fact is that there are leftovers in the residential complexes that have not been sold. It is clear that the situation with Kyivmiskbud, which has completely stopped, does not allow for sales. No one is ready to invest when construction is completely stopped. Therefore, we intend to start building, complete something and thus show that the company is working. And the investors themselves will consider buying out residential and non-residential premises in their residential complexes in the future to get the company started. It will be difficult for the company to find third-party investors even after receiving additional capitalization, given that everything has been stopped and there has been such negative information, including in the press,” emphasized Smiyan.
The investors also intend to control where the funds received by Kyivmiskbud as part of the additional capitalization will be directed and how they will be spent. This is also due to the fact that the company has a lot of debts. Tetyana Smiyan continues.
“We are considering this in such a way that eventually separate bank accounts will be allocated for residential complexes. And if investors of one residential complex are ready to buy additional premises, then these funds should be used exclusively for the completion of this complex. This was at least discussed. We hope that there will be control, because there were many concerns from local deputies that the company would receive the funds, and the company already has a lot of debts, and the funds could simply be used to pay off debts. Therefore, of course, we, the investors, will try to participate in this process by all possible means and control it, not to let it go,” the investor representative assured.
What about government support?
The Cabinet of Ministers has no desire to financially support the completion of the Kyivmiskbud and Ukrbud facilities. The Kyiv City State Administration states that the issue of compensation to Kyivmiskbud for the total planned loss associated with the completion of Ukrbud’s construction projects in the amount of UAH 2.28 billion has not been resolved at the level of the Cabinet of Ministers of Ukraine.
“The problematic situation with the completion of these facilities remains outside the Government’s attention, despite the fact that a large number of apartments are to be handed over to military personnel and their families. Currently, the executive body of the Kyiv City Council (Kyiv City State Administration) is taking steps to organize and maintain a constructive dialogue with the Government. In particular, it has initiated the creation of an interagency working group to determine mechanisms for resolving the situation around PrJSC HC Kyivmiskbud. Its key task should be to coordinate interaction with the Cabinet of Ministers of Ukraine, the Ministry of Finance of Ukraine and other relevant agencies to compensate for the total debt for the completion of Ukrbud’s facilities,” the KCSA said in a letter of response.
Source
“In case of non-compliance with contractual obligations, investment entities shall bear property and other liability provided for by the laws of Ukraine and the concluded agreements. Interference of state bodies and officials in the implementation of contractual relations between investment entities beyond their competence is not allowed. In view of the above, the Ministry has no right to interfere in contractual relations and is not authorized to monitor compliance with contractual obligations,” the Ministry added.
They also explained that local governments are legal entities and are legally endowed with their own powers, within which they act independently and are responsible for their activities in accordance with the law, and have the right to independently determine the use of budget funds.
This can also be understood in this way: the government is not against the fact that the capital authorities are capitalizing Kyivmiskbud, but investors’ problems are investors’ problems. And the central government, as it turns out, has already helped investors by deciding that Kyivmiskbud will complete Ukrbud’s facilities.
Private investors do not plan to retreat
“We have been fighting for three years now, since the 22nd, and we are only now reaching a certain stage, and there is still no certainty. But we are waiting and hoping,” Tatyana Smiyan, a representative of the private investors, outlined the intentions of the private investors.
“We hope that everything planned will be realized and that the mayor will fulfill his promises. This is our main guarantee, which we managed to achieve, in part, by blocking Khreshchatyk during our largest rally,” emphasizes Smiyan.
On September 11 this year, private investors again came to Khreshchatyk and met with the mayor of Kyiv, Vitali Klitschko. Source
“Investors came out to protest demanding that the full amount of UAH 2.56 billion be provided for in the Kyiv city budget. We understand that the city of Kyiv is actively trying to allocate funds for the Armed Forces. We wanted to come out and show the deputies that we are not separate from the Armed Forces, we are the same families from the Armed Forces, and there are requests from the same soldiers from the hottest spots that the company needs to be saved, that we need to provide housing for the families who are waiting for them. So we just wanted to convey our importance and make it clear what we are asking for. We wanted to meet with the mayor and the heads of the factions, because we need a final decision from the Kyiv City Council, which must approve the relevant budget adjustments and provide all the promised funds for the company’s recapitalization,” emphasized Smiyan.
In addition, private investors, Kyivmiskbud, and the city authorities are awaiting a decision from the National Securities and Stock Market Commission, which is still reviewing the documents submitted by PrJSC HC Kyivmiskbud for registration of the share issue. on September 12, the company reported that the National Securities and Stock Market Commission had requested additional documents and sent requests for clarification. Kyivmiskbud said that the requested documents had been prepared and submitted for review, and assured that this in no way affects the timing of the completion of the recapitalization procedure.
If the National Securities and Stock Market Commission makes a positive decision and, accordingly, receives a temporary certificate of registration of the share issue, then from October 1 to November 28, 2025, the shares should be placed, then payment for these shares should be made and Kyivmiskbud should receive the funds. And then the company will have a chance to resume construction, and investors will have the opportunity to get their apartments.
Author: Sergey Vasilevich
