The holding company "Kyivmiskbud" has prepared and submitted to the Kyiv City State Administration a detailed calculation of the funds required to resume 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 JSC "Holding Company "Kyivmiskbud" Vasyl Oliinyk, the financial forecasts are based on economic indicators provided by one of the Big Four audit firms and are grounded in the exchange rate of the hryvnia to the US dollar. Specialists from Kyivmiskbud have worked 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 totaling $107,569,366. Based on the exchange rate of the hryvnia to the US dollar projected in the Ukrainian state budget for 2025 ($1 = 45 UAH), this amounts to 4,840,621,470 UAH. If we subtract the funds required to complete the projects of Ukrbud, which the Cabinet of Ministers is expected to provide, the necessary capitalization amount from the Kyiv City Council will be 2.56 billion UAH,” the head of “Kyivmiskbud” explains.
Previously, the permanent commission of the Kyiv City Council on budget, socio-economic development, and investment activities instructed the HC “Kyivmiskbud” to calculate the amount of funds needed by the enterprise to stabilize its operations.
As reported, in March 2024, the Kyiv City State Administration established a temporary commission to address problematic issues related to the activities of JSC "Holding Company "Kyivmiskbud".
Following an audit of "Kyivmiskbud" 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 operations with related parties were found. However, auditors established that the operations of "Kyivmiskbud" were disrupted due to external factors: COVID-19, the full-scale war, and the situation with "Ukrbud".
The Kyiv City Council commission approved an interim report on November 17, 2023, with recommendations and proposals for the further work of the developer, which include purchasing apartments in "Kyivmiskbud" projects, considering the possibility of providing a financial loan or additional capitalization for the company. The commission also recommended that the Kyiv City Council appeal to the Cabinet of Ministers regarding compensation for the total planned damages related to the completion of projects by the construction corporation "Ukrbud," amounting to 2.28 billion UAH.
HC "Kyivmiskbud" was established in 1994 based on the assets of the state communal construction corporation "Kyivmiskbud" by merging the controlling stakes of 28 enterprises and other assets into its charter capital. The holding company comprises 40 joint-stock companies in which it holds shares, six subsidiaries, and 51 enterprises as associated members.
According to the National Securities and Stock Market Commission (NSSMC), the main shareholder of JSC "HC "Kyivmiskbud" is the Kyiv City Council (80%).