Police investigate UAH 7.4m privatisation of premises by Kostyushko's company

Police investigate UAH 7.4m privatisation of premises by Kostyushko's company
Police investigate UAH 7.4m privatisation of premises by Kostyushko's company

The capital's police are continuing the investigation into a criminal case regarding the possible illegal sale of municipal real estate. According to investigation data, a company linked to Kyiv City Council MP Oleh Kostyushko purchased non-residential premises of 576 sq m at 3 Post-Volynska Street in the Solomianskyi district for 7.4 million hryvnia, avoiding a competitive auction. This became possible due to the artificial inflation of the value of so-called "inseparable improvements".

Nature of the offence and key figures

Investigators established that the actual cost of the repair works carried out by the tenant was only 75,800 hryvnia. However, in the documentation for the Department of Municipal Property of the Kyiv City State Administration (KMSA), this amount was stated as 1.8 million hryvnia. This 25-fold difference allowed KS Eco LLC to register ownership of the assets outside the open tender procedure.

In January 2026, law enforcement officers served suspicions on a number of figures in the case. Among them are Oleh Shmylar, First Deputy Director of the KMSA Department of Municipal Property, two asset appraisers, as well as the former and current heads of the purchasing company. Former KS Eco LLC director Olga Bezsonova was placed on the international wanted list.

Chronology of events and actions of the figures

Criminal case No. 42023102090000175 was opened by the Solomianskyi Department of the National Police of Ukraine in Kyiv on 14 September 2023. The investigation established that from April 2011 to December 2015, the premises at 3 Post-Volynska Street were leased by Budmaterialy-Vtorresursy LLC for the collection of secondary raw materials. In 2015–2018, the tenant became KS Eco LLC, which had been spun off from the previous company.

According to the investigation's version, in August 2018, then KS Eco LLC director Olga Kot formed criminal intent to illegally privatise the assets. She sent letters to the KMSA with a list of repair works which, as later turned out, had actually already been carried out earlier as current repairs. On 2 November 2018, the value of the premises was assessed at 7.1 million hryvnia, and on 8 November of the same year, Oleh Shmylar, who at that time held the position of First Deputy Director of the department, gave consent to the implementation of improvements worth 1.8 million hryvnia.

In March 2019, Olga Kot went on maternity leave, and Olga Bezsonova became the acting director. Investigators believe that the women conspired to prepare forged documents. In July 2019, Bezsonova initiated the inclusion of the premises in the list of objects for privatisation. At the same time, a subcontract was concluded with Resurs Bud LLC for the execution of works, which bore a backdated date of 14 February 2017.

On 23 December 2019, an acceptance certificate for completed works worth 1.8 million hryvnia was signed. Funds from KS Eco went to Resurs Bud, and then, according to investigation data, were transferred to the accounts of two fictitious companies. On 27 February 2020, the Kyiv City Council included the real estate in the list of objects for privatisation.

Valuation and sale of assets

In October 2020, Otsinova Kompaniya "Misto" LLC conducted an assessment of the premises. The report was prepared in four days, and the value of the object was fixed at 7.4 million hryvnia (including VAT). Investigators claim that the appraisers deliberately did not note the discrepancy between the actual improvements and the provided documents, thereby facilitating illegal privatisation.

On 28 December 2020, a sale and purchase agreement was concluded between the KMSA Department of Municipal Property and KS Eco LLC. It was signed by Olga Kot (who had returned from leave) and the head of the department, Andrii Hudz. Payment of 7.4 million hryvnia was made in January–February 2021. A judicial commission construction and technical expert examination confirmed that the actual cost of the works carried out was only 75,800 hryvnia.

Status of the accused

On 15 January 2026, Olga Bezsonova was notified of suspicion in absentia of committing crimes under Part 2 of Article 233 (illegal privatisation of municipal property in large amounts) and Part 2 of Article 366 (official forgery that caused serious consequences) of the Criminal Code of Ukraine. On 21 September 2024, she left Ukraine through the Yagodyn border crossing point towards Poland. According to her lawyer, the suspect resides in Spain. On 31 March 2026, law enforcement officers placed her on the international wanted list, and on 9 October 2026, the court selected a preventive measure in the form of detention, which is to be applied within 48 hours after her arrest.

Also in January 2026, suspicions were served on the current KS Eco LLC director Olga Kot, the head of Resurs Bud LLC, a judicial expert, two appraisers, and Oleh Shmylar.

Context: conflict of interest and previous scandals

According to Youcontrol data, KS Eco LLC (until 2017 — Budmaterialy-Vtorresursy LLC) belongs to Kyiv residents Serhiy Stepanchuk and Oleh Kostyushko. Oleh Kostyushko is an MP of the Kyiv City Council of the 7th–9th convocations, elected from the Solidarity and UDAR parties. In the previous term, he was the secretary of the committee on housing and communal services and energy, and is currently a member of the committee on budget matters. The Kostyushko family's business group includes nearly three dozen companies, including Kramar Recycling LLC and Kramar Eco LLC, which have concluded over 700 contracts worth more than 370 million hryvnia with state structures.

Oleh Kostyushko's wife, Lyudmyla, is an MP of the Zhytomyr Regional Council and the owner of the agro-company Zorya. Previously, disputes arose regarding the rental rate for premises for waste collection. In 2018, the Kyiv City Council changed the rate from a fixed 5% to a differentiated one (from 5% to 25%), and KS Eco LLC received a preferential rate of 2.5%. This decision was criticised by entrepreneurs and the Antimonopoly Committee of Ukraine, which demanded that the violation be eliminated within a month.

Other episodes of the investigation

Within the framework of the same criminal case, the police are also investigating the privatisation of buildings and tennis courts at 63 Povitroflotskyi Avenue. According to the investigation's assessment, the city budget lost approximately 47 million hryvnia due to inaccurate data on the number of courts. Suspicions were served on five individuals, including Andrii Hudz and the head of Umida Invest LLC, which is linked to Ihor Kononenko.

A separate episode concerns the building at 1, lit. 65 Akademika Hlushkova Avenue, where the value of improvements was inflated by 602,600 hryvnia. The assets have been seized, and the possible figures are Kyiv City Council MPs from the European Solidarity party, Volodymyr Prokopiv, Lyudmyla Kovalyvska, and Olga Chayka, who are connected to the charitable organisation-tenant and Parkpoint LLC.

In addition, in April 2026, a new investigation was launched regarding the privatisation of 10 objects worth more than 64.8 million hryvnia. It was established that some buildings were sold at an undervalued price or without a competition, and in one case, the director of the purchasing company was a nominal owner who agreed to provide documents for 2,000 hryvnia.

It is worth noting that Andrii Hudz has headed the KMSA Department of Municipal Property since 5 November 2014. Since June 2022, powers in the field of municipal property management have been ensured by the Deputy Head of the KMSA, MP from the UDAR party, Vladyslav Andronov. The prosecutor's office has already sent indictments to court for several episodes, where Hudz and Shmylar are accused of exempting tenants from paying rent, which caused the budget losses of approximately 24 million hryvnia.

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