The Ukrainian Association of Developers, which brings together major construction companies, has reported a systemic blockage of the industry’s operations by certain politicians and "pseudo-activists."
In an official statement, it is noted that the aggressor has destroyed the homes of over 1.5 million Ukrainian families, and construction volumes have halved compared to pre-war levels. According to minimal estimates, under the current conditions, it will take at least 25 years to provide housing for these families. Creating conditions for the development of the construction industry and ensuring housing for Ukrainians should be one of the state's top priorities.
"However, the construction industry is not only deprived of support; it is under constant pressure and blockage. Developers, who represent millions of Ukrainian families and hundreds of thousands of workers, are currently being taken hostage economically by certain politicians, pseudo-activists, officials, and judges. Together with individual representatives of certain structures, they are illegally blocking the work of an entire sector of the economy. In some cases, the authorities either condone this or simply pretend that the problem does not exist," the published statement indicates.
The Association conducted research on the situation from 2017 to 2024, surveying 13 out of 22 participating companies and analyzing 193 criminal cases. On average, there are five cases per project, with 52% of cases concerning violations by public officials, and 84% of cases accompanied by account and property seizures, interrogations, and searches. Only 17% of cases have been concluded. Meanwhile, 74% of respondents reported that the norms of the Criminal Code regarding the limitation periods for pre-trial investigations and the application of statutes of limitations for offenses are not being observed. For example, the oldest episode for which a case has been opened is 17 years old.
"After a year of construction, an official under street pressure can revoke their own legally issued decision. Some law enforcement officers can initiate a criminal case solely based on the desire to invite businesses for a 'discussion of financial issues.' As a result, pseudo-activists and law enforcement profit, the economy suffers, and citizens do not receive their housing," the Ukrainian Association of Developers explains in the statement.
The authors of the statement emphasize that the construction industry is under constant pressure and blockage. Even with all the necessary permits and documents, builders have no guarantee that central authorities or local governments will not change the rules on the fly and block construction. As a result, developers go bankrupt, the economy loses billions, and people do not receive housing, the developers stress.
The Association warns that further state neglect of the industry's problems will lead to catastrophic consequences. The industry will come to a standstill, and housing prices will soar, making it even less affordable for the majority of citizens.
Major Ukrainian construction companies are appealing to the president, the Cabinet of Ministers, and other authorities to intervene in the situation.
"We demand fair rules! Restore the observance of laws in the construction industry by all its participants! Stop the arbitrariness of pseudo-activists and law enforcement! Hold extortionists and blackmailers accountable! Consider issues of cultural heritage exclusively within the legal framework, not under street pressure! Prohibit the retroactive application of laws and regulations! Stop rewriting construction rules on the fly!" the statement declares.
If this is not done today, tomorrow there will be no one left to build for the state, the Association of Developers concludes.
Established in November 2023, the Ukrainian Association of Developers (UA Developers) unites leaders in the domestic real estate market. As of today, it includes KAN Development, RIEL, Stolitsa Group, SAGA Development, "Kovalska," "Intergal-Bud," Perfect Group, DIM, TARYAN Group ("PoznyakiZhylStroy"), the Association of Western Ukrainian Developers, ENSO, BudCapital, BUD Development, IB Alliance, Futura, "Liko-Holding," GEOS, Citex Development, Ave New Development, Caspian Service, UDP, and Consulting Development. Collectively, the Association's members represent 92% of the primary real estate market in Kyiv and 24% of the Ukrainian market.