Mykolaiv Developers Evade Payments, Leaving City Infrastructure Underfunded

Mykolaiv developers are avoiding paying their share, leaving the city's infrastructure unfunded. Despite court decisions, millions of hryvnias have not yet been paid to the budget.

This was reported by Anti-Corruption Dimension.

In the fall of 2024, the Mykolaiv Prosecutor's Office reported that it had discovered facts of developers' evasion of the payment of equity participation, which should be used to develop the city's infrastructure. The district prosecutor's office filed several lawsuits and obtained judgments worth almost UAH 9 million. However, the victory turned out to be conditional: the cases continue to be considered by the appellate and cassation courts, and the developers continue to avoid paying their debts.

In October 2024, the Commercial Court of Mykolaiv Oblast partially satisfied the prosecutor's claim against entrepreneur Yuriy Borshchyk, ordering him to pay UAH 1.5 million out of almost UAH 2.6 million in arrears. However, the developer of the Premier House residential complex is currently in bankruptcy proceedings. This effectively exempts it from paying the debt.

The Paradiz company that built this complex also raises additional questions, as its website now leads to an online casino, and its owner, a resident of occupied Makiivka, is listed in dozens of other companies. Back in 2007, one of the founders of the company was Oleksandr Kim, probably the father of the current head of Mykolaiv Regional State Administration Vitalii Kim, who was involved in the development of the construction business before his career in the public sector.

Another high-profile case was the Admiral residential complex built by Construction LTD, a company owned by Dmytro Ivanov, a Mykolaiv businessman and member of the Mykolaiv City Council. The prosecutor's office demanded UAH 6.7 million, but the court of first instance reduced the amount to UAH 3.8 million. The appeal is ongoing, and the developer continues to sell the apartments, ignoring the court's decision.

Another Mykolaiv deputy, Serhiy Kantor, is also involved in a case of non-payment of share participation. His company, Irbis, built the Central residential complex and has already sold all the apartments, but has not paid the debt of almost UAH 3 million. Although the court of first instance sided with the prosecutor's office, Irbis tried to appeal the decision, but the appeal upheld the verdict. The case has now reached the cassation court.

Despite millions of dollars in profits, Mykolaiv developers continue to avoid paying share contributions, leaving the city's infrastructure unfunded. Officials connected to the construction business take advantage of loopholes in the system, and even positive court decisions do not guarantee the return of funds to the budget.

Earlier, law enforcement officers recovered UAH 9 million from developers who failed to fulfill their obligations to contribute to the development of the city's infrastructure. The local authorities did not take any measures to recover these funds for a long time. Last year, a court case against a construction company in Mykolaiv that also failed to pay funds for the development of the city's infrastructure in accordance with the law, despite the fact that it was building nine-story residential buildings, was completed.

Анна Бальчінос