The city developer receives budget funds for the second time in two years to continue construction
Kyiv City Council has decided to increase the authorized capital of Kyivmiskbud by 3 billion UAH through an additional share issuance. A total of 67 deputies supported the draft resolution on September 3. This was reported by Liga.Business, according to the portal PromPolitInform.
This decision marks the second stage of financial support provided to the developer from the municipal budget. A previous capital injection of 2.56 billion UAH was implemented in 2025, which enabled the company to resume active operations following a four-year hiatus.
According to the explanatory note accompanying the document, existing financial resources will only suffice until the first quarter of 2027. Experts emphasize that any delay in securing this funding poses a direct risk of construction site closures starting early that year.
The documents also outline risks associated with inflationary pressures and rising construction material costs. The expenses required for future resumption of work, should operations be suspended, would increase significantly, leading to a loss of momentum in completing projects.
A history of financial distress
Forecasts regarding a budget deficit at Kyivmiskbud emerged as early as 2024. At that time, city authorities approached the Cabinet of Ministers of Ukraine with a request for 2.28 billion UAH to complete 18 distressed projects of the bankrupt Ukrbud company, but the central government declined the request.
Following the previous recapitalization, the company issued over 10 billion new shares. The sole purchaser of these securities was the territorial community of Kyiv, represented by the Department of Municipal Property of the Kyiv City State Administration.
This operation allowed the city to consolidate nearly 100% of Kyivmiskbud’s shares. It is expected that the new capital injection will further solidify municipal control over the asset.
Illustrative photo: Tiia Monto / CC BY-SA 3.0
Read also: Up to UAH 170k fine for third-party cards: Zelenskyy submits draft law on drop accounts
