Kyiv City Council has approved an increase of up to 3 billion hryvnias in the charter capital of major builder PJSC Holding Company Kyivmiskbud. The decision was supported by 67 deputies during a council session on Thursday, September 3, authorising municipal authorities to acquire newly issued company shares using public budget funds.
The financial injection marks the second time local government has provided municipal budget funds to support the capital city's dominant property developer. A previous recapitalisation of 2.56 billion hryvnias in 2025 enabled Kyivmiskbud to resume residential building operations following a four-year construction standstill.
However, an explanatory note accompanying the council resolution stated that the funds allocated during the 2025 bailout will be completely exhausted in the first quarter of 2027. Officials warned that delaying the adoption of the funding measure would create a direct risk of work coming to a halt across active building sites early in 2027.
The explanatory document further noted that suspending construction would cause the company to lose momentum in finishing delayed residential projects. It added that restarting work at a later date would cost significantly more due to inflationary factors and the rising price of building materials.
Unfunded projects and government refusal
PJSC Holding Company Kyivmiskbud is the largest residential construction enterprise operating in Ukraine's capital city, holding responsibility for dozens of high-rise apartment developments across Kyiv. The company ran into severe financial strain after agreeing to take over unfinished housing projects left behind by Ukrbud, a major state-linked building firm that suffered a financial collapse and went into bankruptcy.
Capital city deputies had recognised as early as 2024 that earlier financial infusions would be insufficient to cover the developer's liabilities. In 2024, Kyiv city deputies formally petitioned the Cabinet of Ministers of Ukraine to allocate 2.28 billion hryvnias in state funding to help Kyivmiskbud complete 18 unprofitable construction sites inherited from Ukrbud. However, the national government rejected the municipal appeal.
Kyiv City Council serves as the elected representative body for the capital city, overseeing municipal property, public finances, and city-owned enterprises. With thousands of local families awaiting completed apartments in stalled developments, municipal leaders have repeatedly stepped in to maintain solvency at the capital developer.
Municipal shareholding and corporate structure
Following the 2025 recapitalisation, Kyivmiskbud issued 10.24 billion new ordinary registered shares with a nominal value of 0.25 hryvnias per share to absorb the incoming municipal funds. Under Ukrainian corporate procedure, issuing extra equity allows local authorities to inject cash into municipal enterprises without taking on commercial bank debt.
The territorial community of the city of Kyiv, acting through the Department of Municipal Property of the Kyiv City State Administration, served as the sole buyer for the share placement. The Kyiv City State Administration operates as the executive authority of the capital, with its property department managing municipal land, utilities, and corporate holdings on behalf of city residents.
Prior to that recapitalisation, the city of Kyiv controlled an 80 percent stake in the construction enterprise. The 2025 equity purchase increased the municipal holding to almost 100 percent of the developer's total outstanding shares.
With the city council now authorising up to 3 billion hryvnias in further share purchases, municipal authorities aim to keep active building sites operational through 2027 while completing stalled housing projects across the capital.
