Kyiv can easily do without the scandalous road, because there is an alternative project, experts say
It seems that they are planning to destroy the unique natural landscape of the Osokorki eco-park in Kyiv. Recently it became known that the Kiev CP “Directorate for the Construction of Track Transport Structures”, by order of Mayor Vitaliy Klitschko, “secretly” completed a feasibility study for the construction of an extension of Grigorenko Avenue to the borders of Kyiv.
This construction has not yet been approved by the deputies of the Kyiv City Council within the framework of the City Target Program for the Development of Transport Infrastructure, so it is unclear how it was possible to spend money on developing a feasibility study for it. Klitschko, whose order was carried out in the Directorate, seems to have simply decided to force the issue and spend money on the road project without the approval of the deputies. Despite the fact that it will actually cut the Osokorki eco-park into four parts and destroy its integrity.
According to environmental activists, they want to build the road primarily in order to satisfy the ambitions of the Stolitsa Group company, whose plans seem to be to develop as much of the unique natural park as possible. By the way, Kyiv does not need this road, because there is an alternative project that will not affect the environment.
In general, what is currently happening around the Osokorki eco-park, what part of it was saved from development and what part may have already been lost, and is it really possible to do without the scandalous road that Klitschko plans to build.
Ecopark "Osokorki": disposition of the parties for September 2024
It seems that today the Osokorki ecopark, located on the southern outskirts of Kyiv, exists in several different non-parallel dimensions, depending on the points of view of the parties involved.
The first dimension is reality. In this dimension, on Osokorki in the Darnitsky district of the capital, a unique and very delicate ecosystem of wetlands has been preserved, with a total area of about 550 hectares, with three rather large lakes - Nebrezh, Martyshev and Tyagloe, between which and around which there are smaller reservoirs, water meadows and forests plantings. All this is inhabited by a diversity of plants and animals, among which there are representatives of the Red Book, and is subject to a number of international conventions - Ramsar (on wetlands), Bonn (on the conservation of migratory species), Berne (on the protection of wild flora and fauna and natural habitats), etc.
Also in this dimension there are separate areas near Lake Nebrezh, which have already begun to be built up: they washed mountains of sand and built concrete structures on one of them. That is, in real terms, everything looks like at least this part of the unique landscape may be lost.
The second dimension is the idea, framed in the form of the concept of the Osokorki Ecopark, to preserve this entire unique area from destruction. Nowadays, many local activists and a significant part of the population of Osokorki “live” in this dimension. They promote the idea of an eco-park in every possible way and try to give it legal status through decisions of local government bodies and court decisions. Also, some of those in power periodically “visit” this dimension. We are talking, in particular, about those deputies of the Kyiv City Council who, out of the call of their hearts or for political reasons, support the causes of activists.
The third, antagonistic to the second, dimension is that of the developer “Stolitsa Group” and its lobbyists in the City Council and the Kyiv City State Administration. In this dimension, it seems that there is no Osokorki eco-park at all, but only territories that need to be given over for development. The unique ecology of the area is irrevocably destroyed, and the small islands of nature that remain are intended primarily for advertising, and subsequently to meet the needs of potential residents of the new microdistrict.
The fourth dimension is for housing investors of the bankrupt Arkada bank. Most of them have no direct connection to the Osokorki eco-park itself and, perhaps, would even accept the idea of preserving nature there. But the fate of their unobtained apartments in the “Eureka” and “Patriotika” and “Patriotika on the Lakes” microdistricts depends on whether the “Capital Group” completes full-scale construction on the territory of the eco-park. After all, they allegedly plan to use part of the profits from this construction to complete the construction of apartments for abandoned investors. Therefore, these people are forced to act as certain catalysts for the process, and their feelings are actively used as arguments about the need to destroy the eco-park.
The fifth dimension belongs to the city authorities, headed by Vitali Klitschko. This dimension is difficult to unambiguously characterize, except perhaps with the help of phraseology. “Between the drops”, or “through the eye of a needle” - this is how the mayor and most of his subordinates behave in relation to the eco-park, at the same time trying to prove in words their deep concern for environmental matters, but in reality - actually playing along with the developer and pushing through decisions, aimed at destroying nature.
One of these decisions is the approval of the construction of a road through the Osokorki eco-park that is not particularly necessary for Kyiv, which, according to environmentalists and a number of Kiev City Council deputies, will seriously interfere with the nature of this area.
What do the documents say and what are they silent about?
When we talk about the general concept of the ecological park in Osokorki, we mean an area in Kyiv of more than 550 hectares. But the size of the disputed areas, because of which the interests of environmentalists, the Stolitsa Group developer, citizens and authorities are now intertwined in a Gordian knot, is only 176 hectares. If you look at Kyiv from a satellite, the boundaries of the disputed territory look something like this (red rectangle in the photo):
In the north, the territory of the disputed areas runs along Kollektornaya Street, in the south it abuts the city of Kyiv and the Kyiv region. To the east is the Bortnichskaya aeration station and boiler house, and to the west are Mezhozerny Park and Martyshev Lake.
The history of disputes over this territory began back in 2005 under Mayor Alexander Omelchenko, when a significant part of the land in Osokorki, with significant violations of the procedure, according to activists, was leased to Kontaktbudservice LLC for 15 years. At that time, the company belonged to the BYuT people's deputy Alexander Chernovolenko, whose wife held the position of head of the land commission. That is, there was also a clear conflict of interest. In total, 5 lease agreements were signed for the construction of 6 microdistricts.
Chernovolenko was considered the formal owner of the company until 2018, although it is known that since about 2009, Kontaktbudservice LLC already had plans for Konstantin Palivoda’s Arcade. Well, after the bankruptcy of Arcade in 2020, Kontaktbudservice LLC went to Stolitsa Group, which is associated with Vlada Molchanova and her family.
According to the YouControl system, bankruptcy proceedings have been initiated against the Kontaktbudservice company, and among its founders is Yulia Kharchenko, who is at the same time a co-founder of a number of other companies from the orbit of Vladislava Molchanova, such as Datolit, Warsaw Bud, etc.
During the mayorship of Chernovetsky in 2009, a detailed territorial plan was developed and approved just in time for the development of the area of lakes on Osokorki. As activists of the public organization “Ecopark Osokorki” note, the approval of the DPT also occurred with flagrant violations.
This DPT, in particular, contradicted the General Plan of Kyiv, since it contained total development of the shore of Lake Nebrezh, while the General Plan provided for the preservation of a predominantly green zone there. It is interesting that the vote for the controversial DPT took place at night, by vote, and the name indicated on the agenda did not even correspond to the name of the final document.
We are now aware of at least two lawsuits challenging the DPT of the Osokorki development. One of the claims was filed by the NGO “Ecopark Osokorki” in 2018 due to the non-compliance of the DPT with the General Plan of Kyiv. The case reached the Supreme Court, but it decided that the arguments of environmental activists were not enough: “The panel of judges agrees with the conclusion of the courts of previous instances that the decision of the Kyiv City Council of November 27, 2009 No. 695/2764 “On approval of a detailed plan for the territory of the Osokorki district in Darnitsky administrative district of Kyiv" was accepted by the defendant in accordance with the law and within the limits of the powers granted."
The court of first instance also refused to satisfy another claim, from a private person, where the case stopped. Although, as Telegraph wrote, there are known successful precedents for appealing DPT by a private individual. Just recently, one activist managed to win a case in the Supreme Court regarding the illegality of DPT in the Obolonsky district, which, by the way, also affected the interests of the Stolitsa Group.
But the matter did not end with DPT Osokorkov’s appeal. In November 2018, the Kiev City Council decided to terminate the lease agreements with Kontaktbudservice LLC. And not only due to the company’s systematic failure to comply with the provisions of these agreements, but also “due to the negative attitude of the public towards the intentions to develop land plots.” That is, the deputies especially emphasized: one of the reasons was that people do not want construction around the lakes in Osokorki. And in fact, this could be the end of the epic with the development of the green zone on Osokorki.
But the developer appealed this decision, and for each of the five leased plots separately. In court, Kontaktbudservice LLC demanded an extension of the lease for another 15 years. And in the end, the Kyiv authorities did not have enough willpower to bring the matter to an end. Either due to incompetence, or for some other reason, after many years of legal red tape, the City Council lost most of the claims.
“If there had been an instruction or expressed the position of the city mayor to fight for these sites, then not a single one of the sites would have been lost. Since there were every reason not to renew the lease agreements. But, as far as I know, there is an “unofficial” position of the city mayor that these plots should have been leased to Kontaktbudservice, that is, Stolitsa Group. And this, in principle, is the main reason for the lost trials,” Alexander Pilipenko from the NGO “Ecopark Osokorki” told Telegraph.
Trap for Klitschko
“The developer decided to ignore the community. Therefore, the lease agreement is now completely terminated! This decision is a serious signal for other developers who neglect the interests of the city, the interests of the community,” Klitschko categorically stated after the Kyiv City Council terminated contracts with the tenant of plots on Osokorki in 2019. And he added that “the development project received a number of comments.” By the way, the decision to terminate the contracts bears the signature of the mayor.
The interests of the community are, as far as one can understand, the reluctance of the public to see concrete anthills in the unique territory, clearly stated in the decision of the City Council.
But a year later, the consistent Klitschko signed a memorandum with the investors of Arkada Bank, Stolitsa Group and Vlada Molchanova personally, which, in particular, envisaged the construction of the Patriot on the Lakes residential complex near Lake Nebrezh. That is, Klitschko simply ignored the “negative attitude of the public.”
Let us remind you that the essence of the memorandum is that Stolitsa Group undertakes to help with the unfinished residential complexes of the liquidated Arcade, and for this it receives the right to dispose of plots on the territory of the Osokorki ecopark. It was assumed that 10% of the funds received from the Patriot on the Lakes residential complex (now the H2O residential complex) would be used to solve the problems of Arcade investors.
In fact, here we can talk about a rather technically laid trap that Molchanova prepared for the city authorities and investors. The latter had to grab hold of Stolitsa Group as the last straw in the matter of completing the apartments. In turn, Klitschko, in order not to experience problems with Arcade investors, was forced to provide the green light for the development of the Osokorki ecopark.
In this configuration, environmental problems and the interests of people advocating the preservation of the ecological landscape in Osokorki were in last place. Perhaps this is why the Kyiv authorities lost most of the cases?
Lost and won
For a better understanding of the situation, we present a detailed plan of the location of the sites, provided to Telegraph by the NGO “Ecopark Osokorki”, which shows what the situation is as of the beginning of autumn 2024.
So, the plots with numbers from 1 to 5 in the photograph are those that are leased by Kontaktbudservice and which, accordingly, Stolitsa Group planned to develop. According to activists, the developer finally won the lawsuits in the courts to extend the lease of plots numbered 1, 4 and 5.
Plot No. 1, which includes Lake Nebrezh, is the most prepared for construction - sand was washed there back in the days of the Arcade (white spots on the plan). According to activists, there is permission for its development and even one of the houses of the H2O residential complex has already been completely built and construction of another has begun. A total of 43 houses were planned to be built there, but later the planned number increased to 48.
However, lawyer and real estate expert Andrei Stavnyuk, who handles the affairs of a number of investors in the bankrupt Arcade and has a good understanding of the situation around the H2O residential complex, told Telegraph that in fact more has already been built there.
“As far as I know, the current dynamics of construction of the H2O residential complex are significant. They (“Stolitsa group.” - Ed.) build these facilities at their own expense and build quite intensively. And they did not start building these facilities for a long time, because the positions were not agreed upon with the other parties involved in the construction. In particular, with investors of Arkada Bank. Also, Stolitsa Group resolved issues with government authorities, utility companies, coordinated the connection of residential complexes to electrical networks, and the like. Although there have been no public statements to resolve these issues, since they have been actively under construction since January 2024, these issues are most likely now resolved. Of course, there is still more to build and build, even those houses that are currently being built are still far from the final stage. As for the current state, according to my data, all floors of the first house and 15 floors of the second have been built. And besides these two, they began to build a third (already about 5 floors) and even a fourth house,” said Andrey Stavnyuk.
According to activists, a significant part of the buildings of the H2O residential complex, according to the development plan, can be located almost close to the coastline, which is a violation of all current construction and environmental standards. And this allows you to turn to regulatory authorities, and subsequently to law enforcement agencies, activists believe.
“For now, since the land cadastre does not contain data on the PZP (coastal protective strip - Ed.) of Lake Nebrezh, the norms of the water code apply to it. There is a passport for Lake Nebrezh, which states that the width of the coastal strip should be 100 meters, but since the steepness of its slopes is more than 3%, this size doubles. That is, you cannot build closer than 200 meters from the water. For now, we are contacting GIAM (State Inspectorate of Architecture and Urban Planning. - Ed.), and if it does not respond, then there is a reason to contact the prosecutor’s office,” said Alexander Pilipenko.
But, according to lawyer Andrei Stavnyuk, even the possible presence of suspicions of environmental violations is unlikely to stop the construction process. Although it can have a significant impact on the issue of putting houses into operation.
“If we talk about any environmental or other similar violations (for example, violations of legislation on the protection of cultural and historical heritage), then, as practice shows, they mostly do not lead to a stop in the construction itself. Problems for the developer in this regard may arise at the stage of putting the house into operation. Therefore, in fact, in Kyiv there are still many such stories as with the famous “monster house” in Podol, and other houses that are not officially occupied today due to violations discovered at the commissioning stage. If we are talking specifically about H2O, then I don’t think that today anyone can prevent the developer “Stolitsa Group” from carrying out construction because of any suspicion of violation of environmental standards or even because of the facts of violation. But at the time of commissioning, this is quite possible,” says the lawyer.
As for other sites lost by the Kyiv authorities, construction has not yet begun on sites No. 4 and No. 5. According to activists, the developer does not yet have permits for them, and engineering preparation for them has not been carried out (and the soil there needs to be washed, otherwise it will be impossible to build). Activists hope that new grounds for terminating lease agreements may emerge in these areas.
The case regarding plot No. 3 recently ended with a victory for the developer in the court of appeal, and it is awaiting cassation.
As for plot No. 2, according to activists of Ecopark Osokorki, the developer lost in the Supreme Court, that is, the lease agreement for it is considered terminated. What its fate will be will depend on the City Council, and activists really hope that they will not be allowed to build on it.
“The fact that the developer lost on this particular site is very good for the eco-park. Because it stands in the way of other plots of the developer that were leased to him. This will significantly complicate his life,” says Alexander Pilipenko.
As for the sites to which Stolitsa Group has no relation, site No. 6 is in constant use of the Zhilinveststroy-UKB utility company. And although its purpose is for residential development, activists hope that construction there will not be done any time soon, also due to the unpreparedness of the territory (the site needs to be leveled, soil washed, etc.). And during this time, it may be possible to grant it the status of a landscape reserve, especially since the petition in this regard has already been approved at the level of the Department of Ecology and Natural Resources of the Kyiv City State Administration.
“To conduct development on this site, it is necessary to carry out very large-scale engineering preparations. It is necessary to wash the area to the height of the rest of the area - approximately 7-8 meters, using hydrowash. After all, this is a flood zone, and during a flood, this entire area is covered with water. Therefore, now this is such a theoretical development, now it is physically impossible to build here,” says Alexander Pilipenko.
But sites No. 8 and especially No. 9 are a real victory for the environmental community. Thanks to superhuman efforts, it has already been possible to declare these territories as nature reserves, which will protect them from development at least for the coming years.
The smallest plot No. 7 is considered a park area. But, activists say, it seems that the current formal owner of part of the plots, the Kiev Institute of Land Relations, may have other plans for it, so it is not a fact that the park will be preserved there.
Something about the “economics” of development on Osokorki
When information about another scandalous development comes into the public space, for example, construction on a unique area from an ecological point of view or on the site of historical monuments, the question always arises of what makes developers cling to such objects with their teeth. The answer becomes clear if you roughly estimate the financial benefits that the developer will receive.
You can understand this if you consider the cost of building a square meter of housing for the developer and, accordingly, the cost per square meter when selling an apartment in a new building.
The approximate cost of construction can be found in a completely official document - the order of the Ministry of Infrastructure “On approval of indicators of the indirect cost of housing construction in the regions of Ukraine.” According to this order, as of July 1, 2024 in Kyiv, this indirect cost is UAH 25,944, or about $626 per square meter.
At the same time, the average cost of 1 square meter in new buildings, according to Dom.ria, is $1,338. The difference between the two indicators is a considerable $712 in potential profit for the developer per square meter.
Of course, we emphasize once again that this calculation is quite approximate. According to lawyer Andrey Stavnyuk, the indicators of the state order can only be applied to developers building from inexpensive materials and using standard designs.
“In fact, these prices (indicators of the Ministry of Infrastructure - Ed.) are underestimated if we talk about the construction of a comfort class or business class. Indeed, there is a developer, DSK Zhilstroy, who builds panel houses of one standard type and can fall into this price range at cost. But if we are talking about a construction project like the mentioned H2O residential complex, I don’t think that they correspond to those specified in the ministerial document. After all, one should take into account the rise in prices for building materials in the context of a large-scale war, and the increase in wages for builders, which today also have certain nuances, and a number of other factors. Of course, I’m not a builder, but since I’m still very familiar with this area, I know that right now the profitability in it is not very high. The developers I spoke with cite a figure of about 20% profitability, taking into account the price at which they sell the apartment to the end investor,” says Stavnyuk.
Accordingly, if you calculate the profitability even at the level of 20%, it will be $267.
Now let’s multiply each of the possible profit options by the number of apartments in the H2O residential complex (and this, according to Stolitsa Group reports, is 11,892) and by the average area of apartments in new buildings. Let it be 50 square meters (in fact, probably more, because it is planned to build apartments with an area of 27.75-147.13 square meters). As a result, we get the potential profit of Stolitsa Group on the construction of the H2O residential complex - from $159 million (assuming a profitability of 20%) to $423 million.
It is obvious that Stolitsa Group will try to financially “squeeze” the maximum out of the development on Osokorki. As Andrey Stavnyuk says, this is why sales of apartments in this residential complex have not yet begun.
“It is known that if you start sales at the planning stage, receiving documents or, for example, at the excavation stage, the price will always be lower than when selling at stages. In such conditions, the investor’s risks are greater, and, accordingly, the developer must give him a larger discount. But after the start of a full-scale war, “Stolitsa” not only with the H2O complex, but also with its other residential complexes, the same “Varshavsky-3”, chose a different strategy - to start sales almost at the final stage or even after the construction of the house. Accordingly, this gives them the opportunity to sell apartments at the maximum price that they can get by developing plots with their own funds. As for the start of H2O sales, I have not heard such information from open sources. But I can give some subjective guidelines that Stolitsa Group will begin sales when it completes or almost completes the first two houses. And this, according to my subjective forecasts, will happen no earlier than in a year,” says the lawyer.
The road to nowhere
Since the beginning of the war in February 2022, the territory of the Osokorki ecopark has become mostly closed, part of it has been mined. But, as Telegraph wrote, although ordinary citizens were not allowed in by TRO, since 2023 the sounds of construction equipment could be heard there regularly, that is, the developers of the Stolitsa Group were allowed entry.
It seems that it was precisely under the cover of this situation and under the protection of a private company (and while ignoring the Kyiv authorities) that the developer was quietly able to kick out the box of one of the houses and begin the second, third and fourth. By the way, construction took place at a time when court decisions to extend the lease of the plots had not yet been made.
It’s interesting that when Sonya Koshkina asked Klitschko about this situation, he just threw up his hands - they say, I’m completely for the environment, but it’s already the way it is. But here Klitschko is openly disingenuous.
Because now there is a very similar situation with the road that they want to build through the Osokorki eco-park. The Kyiv City Council has not yet approved this decision due to the approval of the city transport development program, but for some reason the feasibility study for it, by order of Klitschko, has for some reason been actively developed recently by the KP “Directorate for the Construction of Road Transport Facilities.” This became known from a message from City Council deputy Andrei Vitrenko, who published an extract from the report of the mentioned utility company.
The road, which should become a continuation of Grigorenko Avenue south to the borders of Kyiv, is extremely dangerous from an environmental point of view. In addition, according to Alexander Pilipenko from the NGO “Ecopark Osokorki”, the road through the ecopark is not needed by the city, but only by the developer. At the same time, there is a much safer option for nature, which bypasses unique natural areas and passes next to the aeration station.
“If the road is built, the natural ecosystem of the Osokorki ecopark will lose 90% of its ability to recover and function, because the changes will be irreversible. Therefore, we have a sharply negative attitude towards this project. Only the developer needs Grigorenko’s continuation, since otherwise his development loses its meaning. That is, in a situation with a road, cities are simply going to provide a service to Stolitsa Group for money. And for the city, if we are talking about a highway that should connect Kyiv with suburban villages, there is an alternative project - the continuation of the street. Revutsky, which will not cause damage to the eco-park. This option will be even more convenient for connecting the region with the city,” says Alexander Pilipenko.
This opinion is held not only by activists; there is a completely official conclusion from scientists on this matter.
“Without a doubt, the implementation of Option 1 (the one that Klitschko planned to build. - Ed.) as a result of the construction of the road will lead to a destructive impact on the natural complexes of the lakes. Moreover, this option fragments the tract in two, doubling the impact of the disturbance factor on animals and halving the area of the natural territory in the context of a separate fragment,” says the letter from the director of the Institute of Zoology of the National Academy of Sciences of Ukraine, Doctor of Biological Sciences Vitaly Kharchenko.
In addition, according to the scientist’s conclusion, the construction of the road also grossly violates the provisions of the environmental legislation of Ukraine.
There is also a positive aspect: as Telegraph found out, the option of an alternative road is currently supported by a significant part of the deputies of the Kyiv City Council.
“The fact is that this road should be (approved - Ed.) in the municipal transport development program. But considering that it is there, the Kyiv City Council did not vote for this program twice, because the deputy corps had comments. The road is needed, but we made a proposal that it should not go through the Osokorki eco-park. There is another design solution that will not harm the environment. As far as I know, these proposals from the deputies have not been taken into account. Therefore, as of today, deputies are not ready to vote for the transport program. I think that the mayor and his faction will collect votes for it. There have been calls more than once that the program needs to be voted on, because the city cannot live without it. But the deputies say: remove the road from there (continued by Grigorenko - Ed.), and then we will vote on it. Our faction (SN. - Ed.) will be principled on this issue. And, as far as I know, there are still several factions against the road in its current form,” Andrey Vitrenko, head of the Kiev City Council Standing Committee on Budget, Social and Economic Development and Investment Activities, told Telegraph.
He also added that his faction is generally opposed to the development of the Osokorki eco-park.
“We have not voted and will not vote for the development. We did not vote for the transfer of land and we will not vote for this path either,” Vitrenko promised.
As we see, now the question in the Kyiv City Council is stark - either Klitschko will go for the more environmentally friendly Osokorkov option, or the adoption of the municipal transport program will be postponed indefinitely. There is hope that common sense will still prevail, and the unique balance of the Osokorki eco-park will be preserved.
If the construction of the road is pushed forward in its current form, then it will, in essence, be a road “to nowhere.” After all, even looking at the map, it is not clear which such important highway it will connect to, since according to the existing project it ends up in “empty” lands.
Therefore, the likely primary use will be the supply of building materials for the development of the Osokorki eco-park. Which in turn will mean the destruction of the eco-park both during the construction of the road and its subsequent operation. This will also mean that the mayor of Kiev is firmly on the hook of the Stolitsa Group, and then the fate of the eco-park looks very sad.
In the meantime, Telegraph has made inquiries to the Ministry of Natural Resources, the Kyiv City State Administration and to Vitali Klitschko personally. I also turned to Stolitsa Group for comment in order to understand the position and goal of the developer.
We will closely monitor developments around the Osokorki ecopark. Don't switch.
