Ukraine continues to develop a system of investment agreements, which are becoming a tool for developers trying to bring elite residential complexes to the market using state and municipal lands intended for scientific facilities and infrastructure. As recent journalistic investigations show, these agreements often lead to the fact that high-rise buildings appear on the site of planned scientific centers and botanical gardens, bringing millions in profit to the developers, while the state receives only a small share of these lands.
The main mechanism of this scheme is the conclusion of investment contracts between state institutions and private developers. These contracts are often concluded without open tenders and provide for the reconstruction of scientific facilities or the development of infrastructure. However, the reality is much different: instead of laboratories and research centers, residential complexes appear on these lands. For example, on the site of a hydrological station, where groundwater was studied for 70 years, there is now a residential complex called “Crystal Springs”. This is just one of many examples.
In place of botanical gardens and other protected areas that should serve science, developers are receiving land where luxurious elite complexes are being built, selling for tens of millions of hryvnias. The state receives only a small share of the area – 3–6%, while developers receive huge profits.
The problem lies not only in the agreements themselves, but also in the lack of proper control and transparency. The conclusion of agreements without competition allows developers to use loopholes for profitable, but often illegal schemes. On the other hand, the publicity of such agreements and regular monitoring of their implementation would be important safeguards in the fight against corruption.
The example of the Mykola Hryshko National Botanical Garden clearly demonstrates how even legislative prohibitions can be ignored by developers. The land in Pechersk, despite all prohibitions, became the object of investment agreements, and the residential complex on the territory of the garden became just another example of how violations can become known after the completion of construction.
One possible solution to this problem is to ensure transparency in agreements for the use of state land. All investment contracts should be publicly available, and agreements should be concluded only through open tenders. Regular audits are also important, which can detect violations at an early stage.
Otherwise, Ukraine may face a situation where another scientific or nature conservation area will disappear, replaced by another elite residential complex. Therefore, it is important not only to identify these violations, but also to create conditions for more effective control over state lands in order to avoid further exploitation of these resources for private profit.
