In the Kharkiv region, there are plans to build housing for internally displaced persons at the price of luxury apartments
In Zmiiv, Kharkiv Oblast, a former boarding school is being renovated to provide housing for 222 internally displaced persons. The local budget plans to allocate nearly 388 million hryvnias for the project, but journalists from “Nashi Hroshi” allege that prices for building materials may have been inflated and that the cost of the apartments significantly exceeds local market prices.
According to the journalists’ calculations, the average cost of a single apartment in this project will be about 10.77 million hryvnias, or approximately $241,000. Meanwhile, two- and three-bedroom apartments on Zmiiv’s secondary market can be found for approximately $25,000–$26,000.
The Department of Capital Construction of the Kharkiv Regional State Administration commissioned Zhytlobud-3 LLC to renovate the former boarding school in Zmiyiv. The initial contract value was 389.46 million UAH. On the day the contract was signed, the price was reduced by 1.52 million UAH to 387.94 million UAH.
Work is scheduled to be completed by the end of 2027. The building is to be converted into temporary housing for 222 internally displaced persons. The project calls for 36 apartments:
- 22 one-room apartments;
- 12 two-room apartments;
- 2 three-room apartments.
During the renovation, earthwork will be performed, the foundation will be laid, walls and the floor slab will be erected, interior staircases will be installed, and exterior structures will be insulated and waterproofed. The project also includes interior partitions, flooring, doorways, and interior finishes.
To ensure accessibility for people with disabilities, a lift is planned to be installed. In addition, ventilation, heating, water supply, sewer, and electrical systems are to be installed. The project also includes external water supply and sewer systems, major repairs to the well, reconstruction of the buildings, and the construction of external heating networks.
The cost of the apartments is significantly higher than local market prices
The work is being funded from the local budget. Only 88,000 hryvnias have been allocated for 2026, while 387.85 million hryvnias are planned to be spent in 2027. “Our Money” calculated that, given the project’s cost, the average price of a single apartment will be about 10.77 million hryvnias, or approximately $241,000.
For comparison, according to the publication, two- and three-bedroom apartments on Zmiiv’s secondary market sell for approximately $25,000–$26,000. In other words, the average cost of an apartment under this reconstruction project could be nearly ten times higher than the price of housing on the local market.
Journalists found discrepancies in material prices
Separately, “Nashi Hroshi” analyzed the prices of construction materials included in the project. For example, B30 W6 F200 concrete was listed in the final bill of materials at 7,182 UAH per cubic meter. Meanwhile, “Kharkiv Building Materials” offers this concrete for 5,430 UAH, and the “Rockside” concrete products plant offers it for 5,800 UAH per cubic meter.
Another example is unplasticized polyvinyl acetate dispersion. The cost estimate listed it at 276 UAH per kilogram. However, journalists found prices of 209 and 175 UAH per kilogram in stores. This is 24–37% cheaper. The VVGngd 5×16 sq. mm cable was listed in the documentation at 853 UAH per meter. “Ukrprovid” sells this cable for 694 UAH per meter, which is approximately 19% cheaper. “Thus, for these items alone, the potential overpayment could amount to about 8 million UAH,” noted “Nashi Hroshi.”
At the same time, the price comparisons cited by the journalists do not in themselves prove the existence of violations. Only relevant audits can definitively assess the reasonableness of the costs for labor and materials.
The contractor received the contract without competition
Another detail: Zhytlobud-3 LLC was awarded this contract without competition. No one else submitted a bid in the open tender. Moreover, the terms of participation required prior review of the project documentation. This could only be done in person at the client’s address on business days. A representative of a potential bidder had to present an ID and a diploma in construction engineering.
According to “Nashi Hroshi,” the Kharkiv-based LLC “Zhitlobud-3” is owned by Yuriy Melnyk, who previously also served as the company’s director. The company is currently managed by Oleksandr Vasylyga. Since 2023, “Zhitlobud-3” has received government contracts worth 2.53 billion hryvnias. The company received the majority of its contracts from its current client—the Department of Capital Construction of the Kharkiv Regional State Administration. This is reported by the “Nashi Hroshi” website.
Thus, the renovation of the former boarding school in Zmiiv is expected to provide housing for over two hundred internally displaced persons; however, journalists have drawn attention to the project’s high total cost, the prices of certain materials, and the lack of competition during the procurement process.
The Security Service of Ukraine (SBU) has exposed hackers who created a fake “Reserve+” app to evade mobilization.
A pre-trial investigation is currently underway to identify all participants in the criminal scheme and bring them to justice. The suspects face up to eight years in prison, according to the SBU.
As a reminder, the SBU, the State Bureau of Investigation (DBR), and the National Police have uncovered 11 more schemes to evade mobilization in various regions of Ukraine.
