Riches and Paupers of the Kyiv City Council: Deputies Don’t Declare Their Wives and Their Money

The largest wealth among Kyiv City Council deputies belongs to the son-in-law of former MP Pylypyshyn — Yalovyi — more than 309 million. Kisilov’s wife gifted 10 million UAH to herself. Millionaire Tovmasian feels it’s awkward to ask his wife about her “stash.” Each 10 deputy has poverty-level income.

Pyshnyak’s wife — the former daughter-in-law of deputy Balenko — does not want to tell the impoverished deputy about her money. Novikov hid his wife with income and still hasn’t obtained a transit pass from the Kyiv City Council. Former deputy-lawyer Marchenko admits he receives loans from “Illiashev and Partners” for the purpose of tax optimization.

Which Kyiv City Council deputies earned the most?

The richest Kyiv City Council deputy in 2016 by income was Batkivshchyna member Olga Veremeenko, who as deputy director of PE “Akrilat-Khimkontrakt” declared over 26 million UAH. Almost the entire amount of that income is her husband’s dividends from that company.

The deputy family’s income doubled, which allowed Veremeenko to move up from 2 to 1 place by income. Note that the salary at the company for the millionaire Veremeenko family is in the range of 300–420 thousand UAH. She employed her daughter together with her sister at her workplace. The deputy is astonished and delighted to top the ranking: “Really? So I paid the most taxes? God, what did I do to deserve such fame! These are incomes for 2016 year? This is not something lying in a piggy bank, but what was earned by honest work? God!”

Asked by a journalist why she declared her sister as a family member — does she really live with her — Veremeenko replies that she listed her sister just in case because of the sister’s registration: “I thought it’s better to show than to hide something. My nephew is also registered, but he has no income — he’s still our dependent — 16 years old, but I couldn’t find a ‘nephew’ line in the declaration, so no expenses are written there.”

That she didn’t make the TOP-5 richest deputies does not surprise the deputy: “We earn — we spend: we don’t hide it under the mattress!”

“Unity” deputy Kostyantyn Yalovyi didn’t even make the top-5 by income in 2015 year. But last year the son-in-law of former MP Viktor Pylypyshyn fared much better — income exceeded 20 million UAH. Income grew sixfold.

The taxable salary of the millionaire deputy is traditionally low. Legal consultant Yalovyi at LLC “Energetychne partnerstvo” received 180 thousand UAH.

Deputy’s wife Olena Yalova — daughter of former MP Pylypyshyn, who voted for the dictatorial laws — is co-owner of “Ukrflora,” from which she received 1,8 million UAH in dividends. Moreover, the company returned to her nearly 10 million UAH in repayable financial assistance. The deputy’s wife earned a bit more than 1 million 300 thousand UAH from entrepreneurial activity during the year. At her primary job she received slightly more than her husband.

Yalova sold corporate rights and securities to her brother Oleksandr and mother Liudmyla Pylypyshyna for a total of more than 2,3 million UAH.

In 2016 year deputy and Yalovyi’s party ally Ihor Kisilov took third place by income. The deputy was lucky to receive nearly 11 million UAH. But that is actually not his merit, rather the extraordinary good fortune of his wife — Hanna Kisilova.

Judging by the declaration — those funds were gifted by her to herself.

Ihor Kisilov, “Unity” deputy in the Kyiv City Council: “I feel uncomfortable (speaking on the phone — ed. CHESNO). My assistant will contact you.”

When the journalist called the deputy a second time a few days later — he said he was entering an elevator and again felt uncomfortable talking, and when offered to call back in 3 minutes (enough time for the elevator to arrive) he replied that he has a lot of work and would better put the journalist in touch with his assistant. However, after 3 minutes the phone was already “out of range.” Neither the deputy’s assistant nor deputy Kisilov himself called back the CHESNO civic movement.

Kisilov himself didn’t earn a single kopeck, but managed to save 10 thousand dollars.

It’s impossible to compare the Kisilovs’ income with previous years because the deputy hid his declaration in 2014 and 2015 years. It’s worth noting that last year the deputy was disgraced when his card was used by his assistant to vote for him in the session hall during his absence.

Thanks to his wife, Kisilov pushed “Samopomich” member and businessman Serhiy Bashlakov from 3 to 4 place in 2016 year; Bashlakov in 2010 year took 143-th place in the TOP-200 richest people of Ukraine.

Serhiy Bashlakov, “Samopomich” deputy in the Kyiv City Council: “He (Kisilov — ed. author) is great… This is an old and understandable story. Look at our national-level officials — for some reason they all also have super-talented families, super-talented businesswomen-wives who earn, relatives who earn, and so on… it’s clear how and why this happens and for what purpose.”

Last year Bashlakov’s income didn’t reach 10 million. Two wings of his business — IT distribution and footwear, united under the MTI brand. The businessman-deputy says profits from business rose in hryvnia in recent years due to the devaluation of the national currency: “Businesses without access to budgetary things, to administrative resources, etc. — most of them went into losses. We had an economic collapse and the National Bank devalued the hryvnia threefold, we ended up with largely accounting virtual ‘inflated’ profit that doesn’t really exist… Income or dividends do not correlate with real business revenues. For our business, in 2016 year we managed to stop the decline somewhat. We stopped falling as we were… but I don’t see any prerequisites for economic growth… as it was, most of the economy is in the shadow — and it remains so.”

Bashlakov divides deputies into three categories and counts himself among volunteers: “Why do people go into deputy roles? Volunteers are people who went there to change something in this country systemically, not just to repair some entrance or to glaze some building… Careerists use the local council as a springboard to climb some ladder. And thieves are those who use access to certain resources, decision-making to extract some benefit.”

Rounding out the top five by income is BPP “Solidarity” deputy Serhiy Pylypenko, who in 2016 year increased his income nearly 9 times compared to the previous year, declaring 9 million 914 thousand 337 UAH. In 2015 year his income was 1 million 185 thousand 520 UAH. Serhiy Pylypenko is the ultimate beneficial owner and CEO of PrJSC “Zavod ZBK named after Svitlana Kovalska.” The deputy says he really increased his income 9 times thanks to investments: “I have an active business. I invest in some projects that in different periods give different investment income. I did receive higher profit this year. I paid taxes. So I declare it confidently, I have nothing to hide. Next year will have different figures.”

Pylypenko insists that exchange-rate fluctuations did not affect his business: “We do our business in Ukraine in construction, production of building materials, investments in real estate and receive profile income. If you analyze the declaration, my main income is dividends and salary to a lesser degree.”

Note that last year the TOP-5 Kyiv City Council deputies by income in 2015 year had a significantly different composition; aside from Veremeenko and Bashlakov, who now made the list of highest earners, the top positions were held by Andriy Osadchuk, Vagan Tovmasian and Dmytro Gordon, who in 2016 year resigned his mandate.

Andriy Osadchuk of “Samopomich” voluntarily gave up first place in the TOP-5, stating that he cannot combine a council mandate with work at Kyivstar, as this could conflict with rules of the American exchange that prohibit paying any funds to persons associated with political organizations. Osadchuk explained he’s leaving Kyivstar to focus only on the City Council: “Those who work find it extremely difficult to combine. That is the main problem of corruption, because the legislation is structured such that it doesn’t allow people to normally work for the good of the community, and this is real full-time work. After one and a half years in the City Council I assert — it’s full-time work. Now 10 minutes before 6 in the evening, and I’m going to a meeting with OSNs. Instead of going for a walk with my three children. 'Free deputies and cheap state officials cost the budget very dearly.'”

Osadchuk emphasizes that the number of Kyiv City Council deputies should be halved; in his view district councils should be created with 15–20 representatives, but all of them should work on a paid basis: “Until this happens at the level of local self-government — nothing will change. It’s good I have a reserve, but what if I didn’t? How would I feed three children and pay utilities? Then I’d have to do some nasty stuff. Combining deputy duties, especially in Kyiv, with any professional activity is practically impossible.”

In fact, local self-government attracts mostly those politicians who need to protect their business interests. Unlike Osadchuk, they do not leave their businesses and make every effort to ensure that their deputy role brings maximum capitalization to their business.

Who and how “amassed” the biggest fortunes?

According to CHESNO methodology, deputies’ wealth consists of all numerical values in the corporate rights section and the monetary assets section in the declaration. That includes cash (in various currencies), bank account funds, precious metals, loans to third parties, contributions to charter capital.

By wealth among 120 capital deputies is the aforementioned Pylypyshyn’s son-in-law — Kostyantyn Yalovyi. He and the former MP’s daughter have almost 310 million. With such wealth the Pylypyshyn-Yalovyi family have had significant influence in the Shevchenkivskyi district of Kyiv across several pre-election campaigns.

This allowed him to rise from 5 to 1 place compared to last year’s ranking, when his wealth was only 21 million UAH.

Note that in declarations for 2015 year deputies were not required to declare cash. Now they must indicate all savings exceeding 50 subsistence minimums, and this information is public for the community.

Deputy Yalovyi doesn’t trust banks with his millions. He keeps almost all his money in cash. On accounts he keeps negligible sums for such wealth — 25 dollars, 661 euros and less than 40 thousand UAH. He also holds 2 million UAH in bank metals. Most of the capital is the result of his wife’s family business. She owns 30% of the total capital of “Ukrflora” (equivalent to 3 million 360 thousand UAH). Yalova trusts banks more than her husband. Third parties owe the deputy’s wife over 235,5 million UAH, of which she loaned only 40,5 million UAH in hryvnias. Interestingly, Yalovyi himself does not lend money to anyone: “If you carefully studied my biography, you know these are not my assets, but my wife’s. She mainly earns. In our family whoever earns the money manages it.”

In the TOP-5 wealthiest appears BPP “Solidarity” deputy and “Furshet” owner Ihor Balenko, who was not on last year’s ranking. For the Balenko couple and singer Inessa Assisi (Assisi Akhat) everything is the exact opposite of the Yalovys. Here Balenko keeps finances in his own hands, and the singer has insignificant sums in her accounts.

Balenko declared 224 million UAH. Almost 22 million UAH are corporate rights in a number of companies. Assisi also has corporate rights, but they are meager — a little over 10 thousand UAH. Balenko keeps funds mainly in cash. He has 700 thousand dollars, 500 thousand euros and 6,5 million UAH. He lent over 18,9 million UAH to third parties, and also over 3 million 662 thousand dollars.

Third place by wealth was taken by BPP “Solidarity” deputy and director of LLC “AF-Leasing” Volodymyr Levin, who declared nearly 200 million UAH.

But millionaire’s income is sparse — all money, namely a bit more than 421 thousand UAH listed as income, was received by his wife Oksana Levina as interest.

Corporate rights for the couple are a bit over 250 thousand UAH. With such modest incomes the deputy managed to accumulate almost a million euros and 680 thousand dollars. He doesn’t trust banks. His wife invested 5 million 473 thousand 235 dollars.

In fourth place by wealth is Batkivshchyna deputy and sole proprietor Vagan Tovmasian, who declared almost 151 million UAH in assets. This year colleagues significantly pushed him down the ranking; last year, when deputies didn’t declare cash, he held the top position.

His declaration must undergo a full NACP check because the deputy’s wife did not provide information about how much cash she holds and in which currency. The deputy explains he’s not afraid of a full NACP inspection, but feels awkward asking his wife about her cash: “We do have a shared budget, but when we met she had a small business, and I don’t interfere. So even from a family standpoint asking such questions like how much you have stashed away — it’s awkward… We decided that together. Yes, I understand there will be a full audit… There are authorities, let them check. Sometimes they make an elephant out of a molehill — you don’t want that.”

The deputy declared 2,3 million UAH in cash monetary assets and also loaned 3 million dollars to a third party. The value of the family’s corporate rights totals 67 million 100 thousand UAH.

Closing the top five wealthy deputies is former mayor and current head of the “Unity” faction Oleksandr Omelchenko, who declared over 94 million 676 thousand UAH in family assets. This year more nimble deputies pushed him from 2 to 5 place.

Oleksandr Omelchenko declared 90% of capital in LLC “VEO Ukrvtorma,” which equals 4 million 950 thousand UAH. The full company name expands as “Ukrainian Production-Ecological Association for Procurement and Use of Secondary Material Resources ‘Ukrvtorma’.” Yet in the company’s KVEDs there’s no mention of procurement of secondary resources; instead typical developer and realtor KVEDs are listed.

Omelchenko and his wife declared 800 thousand UAH cash and 70 thousand dollars in monetary assets, and on bank accounts 1 million 187 thousand 721 dollars and 1 million 27 thousand 976 UAH. The couple holds no euros. Deputy Omelchenko lent third parties 53 million 700 thousand UAH.

How to survive in Kyiv on 0 hryvnias a year?

By CHESNO’s definition, the category of paupers includes deputies whose family’s total annual income is less than the subsistence minimum for all family members listed in the declaration.

By e-declarations for 2016 year, there were as many as 13 deputies identified as paupers. Some earned as little as 0 hryvnias. These include “Unity” members Oleksandr Brodskyi and Oleksii Novikov.

Despite zero incomes, the Brodskyi couple has significant savings and divides everything equally. Each has 315 thousand UAH, 35 thousand dollars and 40 thousand euros. All money is kept in cash. According to media, Brodskyi has a business in Kyiv — trading in kiosks (MAFs).

The only difference in the couple’s monetary assets is that the deputy lent 70 thousand dollars to a third party and has 153 thousand 682 UAH on a bank account, while his wife holds no funds in accounts and nobody owes her money.

“Unity” deputy Oleksii Novikov did not indicate any of his own income for 2016 year in the declaration, nor did he list his wife Yuliia Novikova. On her Facebook page the deputy’s wife posts wedding photos from 2015 year.

In a comment to a CHESNO journalist, deputy Novikov says he lived last year only on savings from property sales in previous years and explains why he doesn’t declare his wife: “I didn’t work in 2016 year… I am unmarried. Therefore I didn’t list a wife. Read the law’s requirements. No, I will not (submit a corrected declaration with a wife — ed. CHESNO). She lives with her… has her own property, we are not married. We are all human and have certain family circumstances. Maybe there are moments one does not want to comment on. It’s not related to wealth.”

On the wife’s social media in the year when the couple’s assets had to be declared, Yuliia Novikova posts photos like these.

Note that some declarants, to avoid listing certain assets and incomes, may actually divorce their spouses and thus not list the former husband or wife as family members, but Novikov insists that is not his case.

The deputy declared cash savings of 152 thousand 300 dollars. Another 15 thousand dollars, according to the declaration, was lent to the deputy by a third party despite his poverty-level income. In December 2015 year Novikov asked the Kyiv City Council to issue him a transit pass for carrying out deputy duties, but he still hasn’t received it: “I have no transport and don’t use it. I requested a transit pass as a deputy, but they didn’t give it to me. I think that’s bad.”

Svoboda member Denys Popov, deputy chair of the standing commission on trade, entrepreneurship and regulatory policy, is a long-standing pauper. Last year he fell into the paupers list, declaring 0 income in 2015 year. In 2016 year the deputy declared only 3 786 UAH in income — his wife’s salary and 149 thousand UAH from sale of his car, likely a Kia Sportage (2,7 l, 2005 yr.), which had appeared in his prior declaration. The deputy is not surprised to be categorized as pauper because, he says, he no longer does business: “That’s right. In 2010 year I left the list of company founders… I’m out of business and the declared taxes in those years were more than enough. And now I have about 500 dollars per month in expenses.”

In 2016 year the deputy declares 45 thousand UAH of his own cash and 22 thousand dollars cash in his wife’s possession. He contributed 15500 dollars to LLC “United Capital Group LTD.”

Head of the “Svoboda” faction in the Kyiv City Council Yurii Syrotiuk also fell into the paupers category by his 2016 declaration. Syrotiuk — a member of two council commissions — anti-corruption and on restoration of rights of rehabilitated persons. In 2016 year he declared only his wife’s salary — less than 12 thousand UAH. For comparison, in 2015 year declared income was three times higher — 33 thousand UAH. In monetary assets the couple declares 17 thousand dollars, 10 thousand euros and 150 thousand UAH in cash; they have no bank accounts.

Yurii Syrotiuk, head of the “Svoboda” faction in the Kyiv City Council: “I’m tired of living in poverty. After I gave up my MP powers, I went to the front. Then I went to the stock exchange. I ended up in Lukianivske SIZO because of the ‘Case of 31 August.’ Trials happen often, and deputy work in the Kyiv City Council also demands a lot of time. Therefore it’s extremely hard to find steady work. But this year I already plan to register as a sole proprietor, because one wife cannot work and we cannot keep consuming savings, and I will provide consulting services because people come to me.”

Like many in “Samopomich,” Syrotiuk emphasizes that in Europe and the U.S. deputies are paid for their work: “This decision must be made by the Verkhovna Rada. In its current composition it will not do this. We have a vogue for populism and demagogy. People want to be liked. As an MP I once was in Madrid. I met with a city council deputy there, and the community covers expenses of about 5 thousand euros — travel, stationery, assistants’ work. Look at the land commission. That composition doesn’t need a salary. They come to implement corrupt schemes. But any reforms must be carried out comprehensively. We need to simplify recall mechanisms, introduce local referendums and give greater powers to communities.”

BPP “Solidarity” deputy Serhiy Artemenko, secretary of the standing commission on property, declared only over 17 thousand UAH in income for 2016 year. That’s his salary as a lawyer at the Charitable Foundation “Dniprovska Syla,” headed by his assistant Oleksandra Lychman.

BPP “Solidarity” deputy Nataliia Prykhodko with her family declared barely over 46 thousand UAH for 2016 year. She says many people in the country live on even less: “I don’t think 46 thousand UAH is a small amount, because many families live on such an annual sum. Plus our declaration shows savings. You can analyze that these savings are decreasing: I also filed a declaration for 2015 year…”

In 2016 year the deputy declared 8 thousand dollars of her own cash and 14 thousand dollars of her husband’s cash. In a corrected declaration for 2015 year she listed 10 thousand dollars of her monetary assets and 20 thousand dollars of her husband’s savings. That is, the family lived a year on 46 thousand UAH and 8 thousand dollars, which is quite realistic.

BPP “Solidarity” deputy Vadym Pyshniak declared 23 thousand 434 UAH in income for 2016 year and at the same time listed zero assets. He assures he will declare more this year because the minimum wage increased. Note that the deputy’s wife Kateryna Balenko did not provide information about her income in LLC “Retail Trend” and therefore the deputy’s declaration is subject to a full NACP check.

Kateryna Balenko is the former wife of another now-former deputy Artur Balenko, son of current Kyiv City Council deputy Ihor Balenko. LLC “Retail-trend” (38896483), whose EDRPOU code is “unknown” to Kateryna Balenko in her husband Vadym Pyshniak’s declaration — is a company of her former father-in-law Ihor Balenko.

Vadym Pyshniak, BPP “Solidarity” deputy in the Kyiv City Council: “What is there to comment? The minimum wage is listed. There are no savings in the declaration because they are not greater than 50 subsistence minimums, that’s all. There is nothing criminal or false in my declaration. Everything is written. It was my wife’s decision (not to indicate income — ed. author), she doesn’t want to indicate it for some reasons. Let them check, there’s a law.”

“Samopomich” member Andriy Osadchuk, who deliberately left a high-paying job to focus exclusively on deputy work, says it’s working so far. In 2016 year he declared 53 thousand 914 UAH received as interest and 15 thousand 638 UAH received by his wife as state child-care assistance, but in 2015 year Osadchuk was the richest and declared millions.

Andriy Osadchuk, “Samopomich” deputy in the Kyiv City Council: “Why in paupers? Because I fulfill my promises? I said I would not work — and I don’t work, I’m unemployed — I can show my employment record… I knew what I was getting into, I knew I wouldn’t earn money and it was a deliberate step, and I said from the start that for some time I could perform this job well having a financial reserve earned over 25 years working at various companies. So I have a reserve, I can do it for now. But the longer it goes, the more I feel the lack of income.”

The deputy declared 791 thousand 698 UAH in his family’s monetary assets and over 320 thousand dollars in bank accounts, as well as 283 thousand dollars, 12,5 thousand euros and 5,3 thousand British pounds in cash. He concedes that without steady income it’s hard to complete a term: “Even people with a reserve like mine find it hard to serve all 5 years. Because 5 years — that’s very long. Any reserves can melt away. For the last six months I look at utility bills with great anxiety. I have a large honestly earned apartment, but now paying for it without income is very expensive.”

Who and why went into millions of debt?

Some deputies last year received significant loans or returned debts. For example, “Samopomich” member Roman Marchenko, who resigned his mandate, declared 59,9 million UAH in income. In the 2015 year declaration the deputy indicated 1 million 358 thousand 270 UAH in income. The deputy works at LLC “Illiashev and Partners” but earned there only 116,5 thousand UAH. He borrowed 8,6 million UAH at work.

46,4 million UAH was received by the deputy as repayment of a loan from foreign citizen To Tien Tuan. According to the ex-deputy, these are his client’s funds.

Roman Marchenko, “Samopomich” deputy in the Kyiv City Council: “This is my client and these are our relations as lawyer and client.”

About loans at work, Marchenko admits that it allows ‘tax optimization’: “It’s a loan that I’m repaying, of course… Obviously this is done for the purpose of tax optimization.”

When the deputy learns he could have been the richest in the ranking if CHESNO accounted for loans and returned debts, he laughs and says deputies shouldn’t be paupers so there’s no temptation to sell votes: “I don’t even know what to tell you, whether this is good or bad in our current environment… however you earned it, the public does not understand such wealth. In fact, when you go in with something (having assets and income — ed. CHESNO), you are confident you won’t sell your vote for 300 dollars on a land-plot vote.”

On 9 February 2017 year deputy Marchenko resigned his mandate because, he said, deputy activity took too much time.

The same situation applies to founder and actual head of the “Furshet” supermarket chain, BPP “Solidarity” deputy Ihor Balenko. Return of interest-free repayable financial assistance in 2016 year brought Ihor Balenko 33 million 39 thousand 581 UAH. The deputy declared that 1,2 million UAH was returned to him by Andrii Melnychuk, likely former head of Holosiivska RDA.

In a comment to a CHESNO journalist deputy Balenko confirms he received the debt from a former official. Interestingly, in Andrii Melnychuk’s declaration for 2016 year the loan repayment is not listed under “expenses.”

Ihor Balenko, BPP “Solidarity” deputy in the Kyiv City Council: “A former head. Yes. It’s him. If he didn’t declare it, that’s a question for him.”

Balenko is a member of the standing commission on urban planning, architecture and land use and as owner of “Furshet” supermarkets may have a conflict of interest as a commission member.

Features of national e-declarations

Not all Kyiv City Council deputies filed declarations on time. Late filers include “Samopomich” member Vadym Nozdrya, BPP deputy Vadym Pyshniak and Batkivshchyna member Yurii Didovets.

Some deputies’ declarations are not found by search on the NACP website. To see them you need to know the unique code that NACP sends the deputy in confirmation.

Thus, deputy Viacheslav Nepop’s declaration is on the NACP website but the site’s search does not find or display it. The same situation applies to BPP deputy Oleksandr Kharchenko’s declaration.

Deputy Kostiantyn Bohatov was surprised when in his corrected declaration the sums of funds were replaced by single ones. In the first main declaration filed on 19 March all sums, he says, are present. The deputy had to contact NACP to fix the error and asks analysts to consider his main declaration when analyzing data.

Kostiantyn Bohatov, “Samopomich” deputy in the Kyiv City Council: “I have two declarations a few days apart… The first full declaration is absolutely correct, 100% correct. I tried to make a few technical clarifications… the sums there are all correct. The timing of changes coincided with system freezing and it saved me a second version with zeros and ones where everything disappeared… We immediately wrote to NACP. Then we went to NACP for a meeting, met with an NACP member… They accepted it and… they will fix it. It’s all absurd and the corrected declaration is absolutely bogus.”

Recall, the CHESNO civic movement previously published analyses of Kyiv City Council deputies’ declarations for 2015 year: “Money Bags and Church Mice” and “Kyiv City Council Deputies: Homeless, Millionaires, Landlords and Car Lovers.” CHESNO also published results of the monitoring of a year of Kyiv City Council work.

Ukrayinska Pravda based on materials from the CHESNO civic movement.