Kyiv decides to recapitalize Kyivmiskbud by UAH 2.6 billion

The Kyiv City Council decided to recapitalize the Kyivmiskbud company by UAH 2.56 billion by increasing the authorized capital.

This was announced by the Kyiv City State Administration, Ukrainian News Agency reports.

"Kyiv plans to recapitalize the company in the amount of UAH 2.56 billion. 73 members of council voted for the relevant draft decision at the plenary session of the Kyiv City Council," the report says.

At the same time, the Kyiv City Council asks the government to be in solidarity with Kyiv in solving the issue of revitalizing the construction of residential complexes of Kyivmiskbud and to help compensate the company for planned losses related to the completion of the facilities of the Ukrainian State Construction Corporation Ukrbud.

It is emphasized that the resumption of the construction of Kyivmiskbud will allow to partially solve the issue of resettlement of families of military personnel, who participated in hostilities.

The Kyiv City State Administration notes that a significant number of residential complexes are being built on lands used by law enforcement agencies, according to calculations of the expected volume of residential areas for the accommodation of military personnel and members of their families, which must be transferred free of charge to the structures of the Ministry of Defense, amounting to 16,600 square meters of residential real estate in the capital. Also, more than 6,000 square meters will be provided to the bodies of the Ministry of Internal Affairs.

The Kyiv City State Administration also notes that at the beginning of 2022, against the background of russia's full-scale invasion of Ukraine, Kyivmiskbud suspended the active phase of construction, while the situation was complicated by the obligations imposed on Kyivmiskbud in 2020 regarding the completion of residential complex projects, which Ukrbud did not was able to build.

Today, Kyivmiskbud accounts for 24 construction sites - more than 120 residential buildings, 548,674 square meters of living space.

According to the audit company Baker Tilly Ukraine, the company's total planned loss related to the completion of Ukrbud projects is UAH 2.28 billion at 2023 prices.

As Ukrainian News Agency earlier reported, on October 31, representatives of 40,000 families of investors of Kyivmiskbud went to a rally near the Kyiv City Hall with a demand to recapitalize the company and build housing.

80% of the shares of Kyivmiskbud are owned by the territorial community of the city of Kyiv.

In April 2023, Kyivmiskbud announced a debt of UAH 326 million from investors, who purchased real estate under the terms of installment agreements.