Scandal over inflated housing prices in Kyiv: scheme of apartment resale through intermediaries

Mechanism of inflating housing prices for the budget

Despite the state of war and the need to finance defence, a situation has arisen in the capital that resembles the classic distribution of resources among the chosen. Although Ihor Kushnir left his position as head of PJSC "HK 'Kyivmiskbud'" over a year ago, suspicions continue to form around the company, involving officials, developers, and close businessmen.

The core of the case lies in the actions of the municipal enterprise "FK 'Zhytlo-Invest'" in 2022–2023. Instead of purchasing real estate directly from the developer, budget funds were directed through a network of intermediaries. These intermediate links have connections with the family of Ihor Kushnir, businessman Oleksandr Hlymbovskyi, and People's Deputy Dmytro Isayenko.

The financial scheme involved buying apartments from "Kyivmiskbud" at a price of approximately 2.3–2.5 million UAH. After the Kyiv City Council decided to allocate 2 billion UAH for housing procurement, the same properties were resold to "Zhytlo-Invest" for 3.9–4.2 million UAH. Thus, the markup reached 68% during the period of full-scale war.

Investigation and legal assessments

The details of the scheme were investigated by the Bureau of Economic Security (BEB) within the framework of criminal proceedings No. 12023000000000905. The defendants were charged with a number of serious crimes, including embezzlement of property, money laundering, and official forgery. However, active actions in the case have ceased since the beginning of 2025. Formally, the investigation can be resumed if there is political will.

Human rights defender and lawyer Oleksandr Dyadyuk publicly stated that the city may have overpaid hundreds of millions of hryvnias. According to him, while Kyiv was seeking financing for shelters, generators, and the protection of energy infrastructure, 2 billion UAH were spent on housing that could have been purchased much cheaper.

List of intermediary companies and their connections

Among the legal entities through which the sale of apartments was carried out, the following companies are mentioned:

• JSC "ZNiKIF 'Kovernot'";
• JSC "ZNiKIF 'Amdel'";
• JSC "ZNiKIF 'Knyahynia Yaroslavna'";
• Private Enterprise "Real Estate Agency 'Riel Kyiv'";
• JSC "ZNiKIF 'Minkar'";
• JSC "ZNiKIF 'Weber'".

Some of these structures are connected to the family of Ihor Kushnir, specifically his wife and children. Other companies are linked to the business circle of Oleksandr Hlymbovskyi, Dmytro Isayenko, representatives of the "Liko-Holding" group, as well as individuals previously associated with "Chernovetskyi Investment Group".

Financial anomalies and reaction of deputies

A telling example was the story involving the "Kovernot" fund, which purchased apartments under deferred payment contracts. This meant that the developer might not receive funds immediately, while the municipal enterprise paid the full, significantly inflated value.

In November 2023, during the reallocation of funds, some deputies openly expressed dissatisfaction with the price of 55,000 UAH per square metre, calling it excessive. Doubts were also raised about the effect of using the previously purchased 567 apartments. Despite this, the decision was passed with the required number of votes.

It is worth noting that Ihor Kushnir's son — Illia Kushnir — voted for the relevant Kyiv City Council decision. He later resigned his deputy's mandate.

Management of "Kyivmiskbud" and the state of construction

After the dismissal of Ihor Kushnir, the management of "Kyivmiskbud" changed several times: the position was held by Vasyl Oliinyk, Svitlana Samsonova, Dmytro Nikiforov, and Valerii Zasutskyi. The city council recapitalised the company in the amount of 2.56 billion UAH. Despite this, construction of many facilities, in particular problematic assets inherited from "Ukrbud", has not been fully resumed.

The current situation resembles a closed loop: significant financial resources are poured into the company, yet construction sites remain frozen, and new procurements are accompanied by scandals.