2,16 million hryvnias the budget never received: how much three years of lawsuits over 83 square meters cost Chernivtsi

Auction, rental, court: how a municipal premises in central Chernivtsi for three years did not bring money to the city

For more than three years, a municipal premises in the center of Chernivtsi, put up for auction for 61 thousand hryvnias per month, did not bring the community a single hryvnia of rent. According to journalists’ calculations, potential budget losses amount to about 2,16 million UAH, and taking into account the entrepreneur’s demand for compensation for damages, this exceeds 3,2 million. How much more was spent on lawsuits, city authorities did not disclose. Mayor Roman Klichuk avoided a substantive on-camera response.

More details — in the feature by Daria Kondratyuk for Stop Corruption TV.

14 June 2022 year, the Department of Municipal Property of Chernivtsi City Council put up for auction the rental of a premises of 83,4 square meters on Stepan Bandera Street, 5. The starting price was 5 621,50 hryvnias per month.

The bidding raised the rate almost tenfold. The highest offer of 61 001 hryvnias was made by Natalya Vargotska, and Larisa Nahorniak placed exactly 61 thousand. The department disqualified Vargotska for failure to submit documents, and Nahorniak became the winner. On 19 July 2022 year, an lease agreement No. 72 was concluded with her.

Rent that did not exist

Instead of transferring the premises, lawsuits began. Nahorniak received the object by act only on 1 August 2025 year, after decisions of the Economic Court, appeals, and the Supreme Court in case No. 926/2191/24.

All this time the premises did not bring rent to the community. At rates around 60 thousand hryvnias per month for 36 months, the budget could have received about 2,16 million UAH. Journalists reported this in a request to the State Audit Service.

These funds could have gone to the needs of the community: support for the military, drone purchases, repairs of shelters, schools, or kindergartens.

The court, and the bill grows

The entrepreneur began paying rent only after the transfer of the premises, but even this story was short. On 11 February 2026 year, the Chernivtsi Appellate Court found the contract No. 72 invalid. The court, in particular, concluded that the Department unreasonably disqualified the participant with the highest bid.

After that Nahorniak demanded from the city 917 632,73 UAH for auction costs, project documentation, franchise and construction works, 100 000 UAH for moral damages and the return of 554 838,28 UAH of paid rent. 30 in July, the Economic Court of the Chernivtsi region partially granted her claim. Both sides filed appeals.

According to journalists’ assessment, the total potential financial impact on the budget exceeds 3,2 million UAH: 2,16 million from uncollected rent plus amounts related to compensation for damages to the entrepreneur. This is a calculation based on available documents, not the amount of damages established by the court.

Unknown article of expenditure

These figures do not include money the city spent on court fees and legal support. Officials did not name this amount. Journalists sent official requests to the city council, including to Mayor Roman Klichuk.

The State Audit Service answered that the Department of Municipal Property was not planned for an audit in the third quarter of 2026 year, but submitted a referral to the risk database for possible future audits.