Automatically translated version. May contain inaccuracies compared to the original.
The Kyiv National Police continue to investigate possible significant undervaluation during the privatization of non-residential premises with an area of 576 sq. m. on Post-Volynska Street, 3 in the Solomianskyi district of Kyiv.
In 2020, their owner became LLC “KS Eco,” which collects secondary raw materials and is owned by Kyiv Council deputy Oleg Kostyushko (UDAR faction). While this company was renting the premises from the city community, as often happens, “integral improvements” were made to them on paper (capital repairs). But, according to law enforcement, their real cost was only 75,8 thousand hryvnias, not 1,8 million as declared and confirmed by the Kyiv City State Administration. As a result, the company was able to acquire the property bypassing a competitive auction for 7,4 million hryvnias. In January 2026 law enforcement handed down several suspicions in this case – received, among others, were the first deputy director of the Department of Municipal Property of the Kyiv City State Administration, Oleg Shmuliar, two property appraisers, and both the “former” and the acting directors of “KS Eco.” The former head of that company is currently listed in an international wanted notice.
City law enforcement continue to examine possible violations of the law in the privatization of the non-residential premises on Post-Volynska Street, 3 (Solomianskyi district), which were in the communal ownership of the Kyiv territorial community until 2020.
The corresponding investigation is being carried out under criminal proceeding No. ¹42023102090000175, opened by the Solomianskyi Department of the National Police of Kyiv 14 September 2023. Olga Bezsonova was notified in absentia of suspicion in this case on 15 January 2026. She is the former director of LLC “KS Eco,” the company that purchased the listed real estate from the city community. The notice was delivered to this citizen’s sister. Olga Bezsonova is officially charged with crimes under part 2 of Article 233 (illegal privatization of municipal property on a large scale) and part 2 of Article 366 (official forgery causing grave consequences) of the Criminal Code (CC) of Ukraine.
On 19 March 2026, the Solomianskyi Department of the National Police of Kyiv declared Olga Bezsonova wanted, and a week and a half later, on 31 March, law enforcement issued a resolution to place her on the international wanted list. Back on 21 September 2024 she left Ukraine via the Yahodyn checkpoint en route to the Republic of Poland. Authorities believe she is hiding from the investigation. According to Bezsonova’s lawyer, the suspect currently resides in Spain. On 9 October 2026 the Solomianskyi District Court, at the request of law enforcement, ordered pretrial detention for this citizen — it is to be applied within 48 hours of Olga Bezsonova’s detention.
What investigators established
From April 2011 through December 2015, the Department of Municipal Property of the Kyiv City State Administration, municipal enterprise “Kyivzhytlospetsexpluatatsiya” (“KZhSE”), and LLC “Budmaterialy-Vtorresursy” entered into a number of lease agreements for non-residential premises on Post-Volynska Street, 3, totaling 556,6 sq. m. for use as an office and for collection and sorting of secondary raw materials and glassware. Later, in 2015–2018 the leases were amended so that the tenant became LLC “KS Eco.” This company had earlier been “spun off” from LLC “Budmaterialy-Vtorresursy” — very roughly it can be called the “successor” of the original tenant.
During the investigation, law enforcement learned that around August 2018, the then-director of LLC “KS Eco,” Olga Kot, developed a “criminal intent aimed at illegal privatization of municipal property — non-residential premises with an area of 575,20 sq. m.” According to the investigation, she decided to acquire the property “by submitting knowingly false information in the privatization documents about carrying out integral improvements to obtain the right to privatization.” The idea was that LLC “KS Eco” would perform repairs in these premises for a certain amount, which would allow the company to purchase the property without a competitive auction, during which its value would likely have increased.
To that end, in August and September 2018 Olga Kot twice sent letters from LLC “KS Eco” to the Department of Municipal Property of the Kyiv City State Administration. According to the National Police, in the first letter the company director listed the integral improvements that needed to be performed in the premises on Post-Volynska Street, 3. As investigators found, the citizen understood that at the time of the request most of the listed repair and construction works at the site had already been “carried out as routine repairs during long-term lease use,” and therefore would not actually be performed by LLC “KS Eco.”
In the second letter, the company head petitioned city administration officials for permission to carry out integral improvements to the leased property. Kot provided the department with a description of the planned improvements, an estimate of the costs, rationale for carrying them out, and a copy of the design and estimate documentation for the planned capital repairs. According to the investigation, the consolidated estimate deliberately included materials and types of work that had already actually been performed at the site.
On 2 November 2018, one of the deputy directors of the Department of Municipal Property of the Kyiv City State Administration (which deputy is not specified in court rulings in this case due to the presumption of innocence) approved an appraisal conclusion for the premises at that address — their value was set at 7,1 million hryvnias. Nearly a week later, on 8 November, the first deputy director of the same department (then held by Oleg Shmuliar) agreed to the improvements, including integral improvements in the amount of 1,8 million hryvnias as provided in the estimate documentation.
Later, in March 2019 Olga Kot “went on maternity leave,” and acting director of LLC “KS Eco” during her absence became the aforementioned Olga Bezsonova. According to investigators, Kot conspired with Bezsonova — the latter was to “continue actions to prepare and use other forged privatization documents.” In particular, the “temporary head” of LLC “KS Eco” was to conclude a contract for repair works with a contracting organization, sign acts of acceptance of completed works, extend the lease agreements for municipal property, and so on.
In July 2019 Olga Bezsonova sent a letter to the Department of Municipal Property of the Kyiv City State Administration requesting that the company’s leased premises on Post-Volynska Street, 3, be included in the list of objects subject to privatization. Meanwhile, by 8 August the parties had already managed to conclude a new lease for this property.
Around the same time, according to investigators, Olga Bezsonova signed a contract with LLC “Resurs Bud” to perform construction works at the above address. As the National Police established, the agreement was dated retroactively — it bore the date of 14 February 2017.
A year later, on 23 December 2019, LLC “KS Eco” and LLC “Resurs Bud” signed an acceptance certificate for completed construction works at the above address for a total amount of 1,8 million hryvnias. From December of that year through January 2020, “KS Eco” transferred 1,8 million hryvnias to its contractor, and then “Resurs Bud,” according to the investigation, transferred those funds to accounts of two companies showing signs of fictitious activity. On 26 December 2019 the tenant of the premises on Post-Volynska Street, 3 informed the Department of Municipal Property of the Kyiv City State Administration of the completion of integral improvements there. On 28 January 2020 a new agreement was signed between LLC “KS Eco” and the Department of Municipal Property of the Kyiv City State Administration to extend the lease term for the premises at that address (until August 2029). Then, on 27 February 2020 the Kyiv City Council officially included this municipal property in the list of objects subject to privatization.
In March 2020 a private forensic expert (name withheld) commissioned by LLC “KS Eco” produced a report following a construction-technical inspection of the premises on Post-Volynska Street, 3. That document recorded information identifying and indicating the period of actual capital repairs of these real estate objects. According to the investigation, those details were false, and the expert acted on the basis of “forged privatization documents” (including certificates of completed works) — “with the aim of obtaining undue advantage.”
On 23 October 2020 a contract was signed between the Department of Municipal Property of the city administration and LLC “Otsinochna Kompaniya ‘Misto’” to carry out the appraisal of the non-residential premises on Post-Volynska Street, 3. Four days later, on 27 October, the appraisal report and conclusion were already sent to the department — according to these documents, the value of the premises was 7,4 million hryvnias (of which 1,2 million hryvnias was value added tax). According to the investigation, the appraisers who calculated the value assisted the leadership of “KS Eco” in illegally privatizing the leased municipal property, since they “deliberately did not prepare and submit to the department a negative conclusion indicating the inconsistency of the existing improvements of the leased real estate with the supporting documents on the directions and volumes of expenditure for the improvements.”
At the end of that year, on 28 December, the Department of Municipal Property of the Kyiv City State Administration and LLC “KS Eco” signed a purchase–sale agreement for the non-residential premises on Post-Volynska Street, 3. On the buyer’s side it was signed by the aforementioned Olga Kot, who, shortly before, in September 2020, had “returned from maternity leave,” and on the department’s side by its head, Andriy Hudz. The price of the listed objects, as noted above, was 7,4 million hryvnias.
Subsequently, during January–February 2021 Olga Kot transferred the mentioned funds to the Department of Municipal Property of the Kyiv City State Administration. And during the investigation, according to the results of a court-ordered construction-technical expertise, law enforcement established that the cost of integral improvements carried out in the premises on Post-Volynska Street, 3 amounted to 75,8 thousand hryvnias. That is, almost 25 times less than the amount claimed by LLC “KS Eco.”
Note that in January 2026 additional suspicions were served in this case — received, among others, were the current director of LLC “KS Eco” Olga Kot, the head of LLC “Resurs Bud,” and the aforementioned forensic expert (who determined, among other things, the period of repair works), two appraisers, and the first deputy director of the Department of Municipal Property of the Kyiv City State Administration, Oleg Shmuliar. However, the exact number of persons involved in the proceeding is not currently definitively known.
Some details
Another scandal was linked to these premises. In February 2018 the Kyiv City Council changed the rental rate for premises used for collection and sorting of garbage: until 2018 it was 5% and the same for all, but according to that decision the rental rate for such objects became from 5% to 25% depending on their distance from residential buildings (if less than 200 m — 25%, more than 200 m — 5%). Meanwhile, already in May 2018 the Kyiv City Council’s property commission, at the request of the Department of Municipal Property of the Kyiv City State Administration, allowed LLC “KS Eco” to rent the premises on Post-Volynska Street, 3 at an even lower rate of 2,5%.
In September that year a group of entrepreneurs involved in waste sorting appealed to the Kyiv City Council’s Commission on Legality and Anti-Corruption with a complaint that the city council’s decision to “diversify” rental rates was discriminatory, and that granting LLC “KS Eco” additional preferences was illegal.
They argued, in particular, that setting the maximum rental rate for sorting premises at 25% was lobbied by interested persons, and the goal of that decision was to remove small businesses from the capital’s market. In turn, the entrepreneurs explained the benefits given to “KS Eco” by the fact that one of the Kyiv Council deputies is connected to it. Complainants emphasized that their requests to reduce the rent rate for their enterprises were rejected by the property commission.
In October 2018 the Kyiv City Council’s anti-corruption commission appealed on this matter to the Department for Prevention and Detection of Corruption of the Kyiv City State Administration, the National Agency for Prevention of Corruption, and the Main Directorate of the National Police in Kyiv. And in December of the same year the Kyiv branch of the Antimonopoly Committee of Ukraine (AMCU) criticized such actions by the city authorities. The regulator stressed that rent for such objects should not depend on their location. The AMCU also called unacceptable a situation where individual economic entities, for example LLC “KS Eco,” receive exclusive benefits from deputies. The Kyiv City Council was then given one month to correct the noted violations, but whether it was done could not be found in open sources by KV.
What is known about the figures involved
According to the analytical system YouControl, Kyiv LLC “Budmaterialy-Vtorresursy” was registered in December 1999, and in 2017 the company changed its name to LLC “KS Eco.” Its director is Olga Kot, and the founders and ultimate beneficiaries are Kyiv residents Serhiy Stepanchuk and Oleg Kostyushko.
The latter is a Kyiv Council deputy of the VII–IX convocations — he was elected from Solidarity and UDAR. In the past convocation of the city council, Oleg Kostyushko was secretary of the commission on housing and communal services and the fuel and energy complex (housing and communal services and fuel and energy complex), which oversees, among other things, secondary resource issues, and in the current convocation he is a member of the commission on budget, socio-economic development and investment activity. YouControl attributes nearly three dozen business entities to the Kostyushko family group, engaged in real estate, vehicle maintenance and repair, safe waste collection, and more.
Incidentally, Oleg Kostyushko’s wife Lyudmyla was a deputy of the Zhytomyr Regional Council in the previous VII and current VIII convocations (elected from the BPP–Solidarity and Proposition parties). She also owns the agricultural company “Zorya,” which grows and processes flax and was established on the basis of a collective farm that covered the lands of 4 villages in Zhytomyr region.
It appears that waste disposal is the main business focus of the Kostyushko family. For example, companies in their orbit — LLC “Kramar Recycling” and LLC “Kramar Eco” (the brother of Oleg Kostyushko, Maksym, is a co-owner of the first; the second is owned by Oleg Kostyushko and Serhiy Stepanchuk) — operating in this sector have together signed with various state and municipal bodies in Ukraine over seven hundred contracts for such services totaling more than 370 million hryvnias. Interestingly, according to some media, several years ago on local forums of the Vidradnyi neighborhood, from which Oleg Kostyushko was elected to the city council, residents wrote that local housing offices imposed “Kramar-Recycling” services on private-sector residents.
In past convocations of the Kyiv City Council, at meetings of the housing and communal services and fuel and energy complex commission, Oleg Kostyushko several times raised the issue of problems faced by waste collection companies that allegedly receive too little payment for their services. For example, to avoid raising utility tariffs for the public, Kostyushko proposed compensating waste collection companies for part of the fuel costs that had soared in price. And in 2017 he even considered the possibility of building Kyiv’s first waste processing plant.
LLC “Resurs Bud” (the declared general contractor of the capital repairs of the premises on Post-Volynska Street, 3) was registered in March 2015. Its director, owner and ultimate beneficiary is listed as Serhiy Palamarchuk from the city of Rivne. But the suspicion from law enforcement was received by the previous owner and director of that company, Olga Manko — she owned “Resurs Bud” from its registration until 2021.
Law enforcement has previously drawn attention to clear “manipulations” in valuing integral improvements in municipal objects, which allowed tenants to buy them at an undervalued price.
For example, within the aforementioned criminal proceeding No. ¹42023102090000175, the National Police is also studying possible violations during the privatization of buildings and tennis courts on Povitroflotskyi Avenue, 63. According to the investigation, when these objects were sold the city budget lost about 47 million hryvnias due to their incorrect valuation — the documents on completed integral improvements contained false information about the number of tennis courts built. Recently, suspicions in these offenses were served to five people. Among them were the director of the Department of Municipal Property of the Kyiv City State Administration, Andriy Hudz (in the collage on the right), and the head of LLC “Umida Invest” (the ex-tenant and former owner of the property), which apparently was or still is within the orbit of Ihor Kononenko — an ex-MP, business partner and political ally of the 5-th president of Ukraine.
Also in the same case investigators are looking into similar violations in the privatization of a building on Akademika Glushkova Avenue, 1, lit. 65. According to the National Police, the value of the integral improvements that allowed the tenant to acquire it bypassing an auction on Prozorro.Sales was “on paper” overstated by 602,6 thousand hryvnias. Recently a court imposed an arrest on that property, and it seems the first suspicions will be issued soon. Apparently, deputies of the Kyiv City Council from European Solidarity Volodymyr Prokopiv, Lyudmyla Kovalevska and Olga Chaika should also be concerned about the outcome of this case — they have direct or indirect ties to the charitable organization that rented this building from the city community and later privatized it, and to LLC “Parkpoint,” which currently owns that property.
Moreover, in the “fresh” case from April 2026 the National Police is investigating a number of violations in privatization of real estate objects that were in the communal ownership of the Kyiv community. Law enforcement focused on sales of 10 buildings and premises with an approximate value of over 64,8 million hryvnias (for some objects there is no price data, so the stated amount is “incomplete”). Investigators established that some objects were sold at an undervalued price (sold at “old” prices), and in one case the city authorities sold a building in a non-competitive manner to the current tenant who had not fully completed repairs there. Additionally, one building was sold to a company whose director was only a nominal figure who agreed to provide his documents for 2 thousand hryvnias.
Recall that over the past several years the city prosecutor’s office has sent to court indictments on about six criminal episodes (there may in fact be more) allegedly committed by the same Andriy Hudz and his first deputy Oleg Shmuliar. According to law enforcement, these officials unlawfully relieved tenants of a number of municipal properties, including the Kyiv cinema building, from the obligation to pay rent to the city budget. As a result of such officials’ actions, preliminary data indicate losses to the city treasury of about 24 million hryvnias. These funds will have to be reimbursed by the defendants if their guilt is proven.
Andriy Hudz has headed the Department of Municipal Property of the Kyiv City State Administration since 5 November 2014. Since June 2022 the exercise of KSDA powers in the field of municipal property management and privatization has been ensured by Kyiv Council deputy from the UDAR faction and KSDA deputy head Vladyslav Andronov.
Author: Oleksandr Hlazunov
KyivVlada
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