In Odesa, a construction company was demanded to pay 8.4 million for apartments on Velyka Arnautska Street

In Odesa, proceedings have resumed in a case in which the prosecutor’s office sought to recover more than 8.4 million hryvnias from a construction company for the benefit of the city. The case involves equity participation funds which, according to the prosecutor’s office, the company retained without justification.

The Odessa Regional Commercial Court issued the corresponding ruling.

The lawsuit was filed by the Primorsky District Prosecutor’s Office of Odesa on behalf of the Odesa City Council against Pivdenna Financial and Construction Company LLC. The total amount claimed is 8,434,798 hryvnias. Of this amount, over 7.3 million hryvnias are equity contributions; an additional 830,300 hryvnias were calculated as inflation losses; and 282,800 hryvnias as 3 percent annual interest.

The dispute concerns the construction of apartments with integrated administrative and commercial spaces and an underground parking garage at 115 Velyka Arnautska Street in Odesa. The court ordered a construction and technical expert assessment to determine the actual cost of construction and compare it with the figures specified in the documents for commissioning the facility and in the design and cost estimate documentation.

The expert was also tasked with verifying exactly which expenses were included in the construction cost, specifically whether the costs of the land plot, construction site preparation, utility networks, and transportation infrastructure were accounted for. The cost of the expert assessment was 45,000 hryvnias, and the construction company was required to pay for it.

After conducting the examination, the expert submitted the findings of the construction and technical expert assessment to the court. Upon receiving the report, the court resumed proceedings in the case, which had previously been suspended specifically for the duration of the expert assessment.

Separately, in this case, the prosecutor’s office requested that the company’s funds be frozen up to the amount of the claim. Initially, the court denied this request; however, the Commercial Court of Appeals overturned that decision and ordered the freezing of the company’s funds in its accounts up to 8.43 million hryvnias.

The parties were invited to provide their comments on the expert’s report, after which the court is expected to proceed with further consideration of the prosecutor’s office’s claims for the recovery of funds in favor of the city.

An investigation is also underway in Odesa regarding the development of the market. According to investigators, permanent structures were illegally constructed on the site for years in violation of the lease terms.

Анна Літман