The holding company "Kievgorsстрой" has prepared and submitted to the Kyiv City State Administration a detailed calculation of the funds required to resume the construction of residential complexes, amounting to 4.84 billion UAH, as reported by the company's press service to the Interfax-Ukraine agency.
According to the chairman of the board - president of the public joint-stock company "Kievgorsстрой" Vasyl Oliinyk, the financial forecasts are based on economic indicators provided by one of the Big Four auditing firms and are grounded in the exchange rate of the hryvnia to the US dollar. Specialists from Kievgorsстрой have been working on determining and justifying the necessary funds for the past four months.
“The basic financial forecasting scenario provided by Ernst & Young indicates a need for funds amounting to $107,569,366, which, according to the exchange rate of the hryvnia to the US dollar laid out in the draft state budget of Ukraine for 2025 ($1 = 45 UAH), totals 4,840,621,470 UAH. If we subtract the funds required for completing Uкрбуд projects, which the Cabinet of Ministers is expected to provide, from the basic financial forecasting scenario by E&Y (4.84 billion UAH), the necessary amount for recapitalization from the Kyiv City Council will be 2.56 billion UAH,” the head of "Kievgorsстрой" explains.
Previously, the permanent commission of the Kyiv City Council on budget, socio-economic development, and investment activities instructed the holding company "Kievgorsстрой" to calculate the amount of funds required for the enterprise to stabilize its operations.
As reported, in March 2024, KGSА created a temporary commission to address problematic issues related to the activities of the public joint-stock company "Kievgorsстрой".
According to the audit of "Kievgorsстрой" conducted in 2023 by the state enterprise "Baker Tilly Ukraine Consulting", LLC "NHD-AUDIT" and LLC "Ernst and Young", no signs of actions leading the company to bankruptcy, concealing facts of financial insolvency, or conducting mass transactions with related parties were found. The auditors noted that "Kievgorsстрой's" operations were disrupted due to external factors: COVID-19, full-scale war, and the "Ukrbud" factor.
The Kyiv City Council's commission approved an interim report on November 17, 2023, with recommendations and proposals for the further work of the developer, including the purchase of apartments in "Kievgorsстрой" projects, and considering the possibility of providing a financial loan or recapitalization for the company. The commission also recommended that the Kyiv City Council address the Cabinet of Ministers regarding compensation for the total planned damage to "Kievgorsстрой" associated with the completion of the construction corporation "Ukrbud" projects, amounting to 2.28 billion UAH.
The holding company "Kievgorsстрой" was established in 1994 based on the assets of the state municipal construction corporation "Kievgorsстрой" by consolidating the controlling stakes of shares from 28 enterprises and other assets into its charter capital. The holding company includes 40 joint-stock companies, in which the company owns shares, six subsidiaries, and 51 enterprises as associated members.
According to the National Securities and Stock Market Commission (NSSMC), the main shareholder of the public joint-stock company "Kievgorsстрой" is the Kyiv City Council (80%).