Corruption in Kyiv's land sector: criminal network exposed

The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor's Office (SAP) carried out a large-scale operation, "Clean City", aimed at combating corruption in Kyiv's land and budget sectors. 

During the investigation, a criminal organisation led by a former deputy of the Kyiv City Council was exposed and dismantled.

The scheme for seizing capital land

The criminal network was involved in seizing valuable land plots in the capital for development, as well as controlling the decision-making process of city authorities regarding land allocation. 

The perpetrators registered fictitious ownership rights over non-existent structures, after which they submitted applications to the city council to formalise plots for their maintenance. This method allowed them to bypass mandatory auctions and obtain land without competition.

Figurants in the corruption case

NABU detectives detained nine members of the criminal organisation in accordance with Article 208 of the Criminal Procedure Code of Ukraine. Among them are:

• Petr Olenych — Deputy Mayor of Kyiv;
• Maksym Terentiiev — Kyiv City Council deputy from the UDAR party, head of the commission on urban planning and land relations;
• Oleh Marchenko — Kyiv City Council deputy from the Batkivshchyna party, member of the commission on urban planning and land issues.

Searches were also conducted at the residence of Andrii Palatnyi, head of the executive committee of Vitali Klitschko's UDAR party.

Among the suspects are:

• a former Kyiv City Council deputy, the organiser of the criminal group;
• Deputy Head of the Kyiv City State Administration (KCDA);
• sitting deputies, heads of city communal enterprises;
• other officials involved in the schemes.

Control over land distribution

Members of the organisation not only manipulated the land allocation process but also created artificial obstacles for those attempting to obtain land through legal means. Officials received bribes in the form of cash and real estate for making "correct" decisions.

The head of the criminal organisation had influence over personnel appointments at the KCDA, the distribution of budget funds, and the adoption of key decisions. The centre for managing illegal schemes moved from official buildings to private offices, where meetings with officials and developers took place.

Methods of concealment and exposure

The criminals used shell companies, encrypted communications, counter-surveillance, and other methods of concealment. However, NABU detectives managed to uncover the scheme and gather evidence.

Between 2023 and 2024, land plots in the centre of the capital worth 11.6 million hryvnia were illegally removed from the property of the Kyiv community. However, thanks to the prompt actions of law enforcement officers, the theft of six land plots with a total value of 83.7 million hryvnia was prevented.

In addition, an attempt by the criminals to force a private enterprise to cease its operations in order to seize its land for development was thwarted. A case of offering a bribe of US$100,000 to a Kyiv City Council deputy for assisting the criminal organisation was also recorded.

The fight against corruption in the land sector continues, and law enforcement agencies intend to hold all those involved accountable.