23.04.2025 Construction Corruption

ATB owner Butkevych to build housing in Kyiv

Andriy Vavrysh, a scandalous real estate developer and defendant in a number of criminal proceedings, entered into a partnership with Hennadiy Butkevych, co-owner of the ATB chain. Both are known for their corrupt ties and wealthy appetites. One leaves investors without housing through his own SAGA Development, while the other continues to seize Ukraine’s mineral resources, establishing control not only over cash flows but also over key metals used, among other things, in the military.

O2 Residence scandal: 500 investors on the verge of disaster

In April 2025, the Kyiv Court of Appeal issued a ruling that came as a blow to hundreds of investors: Andriy Vavrysh lost the case against the O2 Residence residential complex. This project, located at 75-A Lisova Street in Kyiv, promised modern housing in an environmentally friendly area. However, instead of keys to apartments, investors received only promises and lawsuits. More than 500 families who invested their savings in this complex were left with nothing.

The trial revealed numerous violations, ranging from illegal use of the land to questionable financial transactions. In particular, the land on which the construction is being carried out belongs to the National Academy of Internal Affairs, and the contract with the company Rezon, which is linked to Vavrysh, has raised suspicions of corruption. Searches at SAGA Development’s office in 2020, conducted as part of an investigation by the State Bureau of Investigation, only confirmed these allegations.

At the same time, O2 Residence is not the only one that has become a long-term construction project. Other SAGA Development projects, such as Rybalsky, San Francisco Creative House, Washington Concept House, and Happy House, have also failed to become homes for thousands of Kyiv residents. Investors complain about frozen construction projects, lack of communication, and even hidden penalties that the company charges despite its own promises.

SAGA Development: from loud promises to bankruptcy?

SAGA Development, headed by Andriy Vavrysh, has become one of the most famous developers in Kyiv over the past 10 years. The company actively advertised its projects in the media and on social media, promising investors modern premium housing. The company has more than 20 projects in Kyiv, Boryspil, and Odesa.

However, after the start of the full-scale invasion, most of SAGA’s construction sites stopped. Vavrysh publicly stated that during martial law, the company would not charge penalties for overdue installment payments. But investors tell a different story.

One of the investors who invested in San Francisco Creative House shared her calculations: “When I tried to terminate the contract and get my money back, I was charged a penalty of UAH 430,338 and a 10% fine of UAH 402,241. In total, out of the UAH 1.48 million I paid, I would have received only UAH 651 thousand back. And this is without any warnings or official documents.” Such actions of the company indicate a systematic misleading of investors.

Moreover, investors report artificially inflating the cost of housing by 20% without any explanation. At the same time, no work is actually being done at the construction sites.

The financial condition of SAGA Development also raises serious concerns. According to sources, most of the company’s construction projects have been suspended due to lack of funding, and a significant portion of the funds received from investors has been withdrawn through offshore companies, including the Panamanian corporation TRIVOR BUSINESS S.A., which is among the founders of SAGA DEVELOPMENT LLC. This may indicate schemes of tax evasion and capital outflow abroad, in particular to Cyprus.

Cooperation with oligarch Butkevych: what went wrong

In October 2024, BGV Group Management, controlled by Gennadiy Butkevych, entered into a strategic partnership with SAGA Development. The first joint project was the Boston Creative House residential complex, where Butkevych’s Magnum fund received 49% in Stolitsa-Zem-Industriya LLC, and 31% belongs to the fund of Vavrysh’s son Maxim Elbrus.

Gennadiy Butkevych is a well-known businessman and co-owner of the ATB chain, which holds a leading position in the Ukrainian retail market. In recent years, he has been actively investing in the mining industry. His company BGV Group Management has gained access to strategic reserves of beryllium worth $100 billion, a metal critical for the aerospace and defense industries. In addition, a crushed stone plant with a capacity of 1.5 million tons per year has been launched in Zhytomyr region, providing the construction industry with materials.

The partnership with Vavrysh looks logical from an economic point of view: Butkevych supplies construction materials, while Vavrysh meets demand through its projects. However, Vavrysh’s reputation as a developer linked to corruption scandals makes this cooperation extremely risky.

Partnership with Vavrysh puts Gennadiy Butkevych’s reputation at risk. The real estate market is in shock: how could one of Ukraine’s most successful businessmen choose such a toxic partner? Some speculate that Butkevych may have been misled by his own circle. According to rumors, his advisors, including Oleksandr Denisov, did not warn him about the risks associated with Vavrysh and even facilitated dubious deals. However, we will find out if this is true later.

In the meantime, Butkevych continues to seize the subsoil market, taking over the country’s key resources and profiting from them.

Who is Vavrysh and should we believe him?

In 2021, the State Bureau of Investigation served Vavrysh with a suspicion notice in the case of the construction of the Alta-Hrad residential complex in Boryspil, which has been going on since 2006. Back then, as a minority owner of Systemabud LLC, Vavrysh entered into a loan agreement with Swedbank, pledging corporate rights and obtaining a personal guarantee. After the financial crisis of 2008, the project stopped, and the debts began to change hands. In 2016, Vavrysh found investors who bought out the debt, but this did not save the project from fraud charges.

Another high-profile scandal is related to the KYIVPROEKT City Space residential complex (16-22 Bohdana Khmelnytskoho Street). In 2022, the court seized the land plot and banned construction work due to the illegality of the development (case No. 757/67510/21-к). However, Vavrysh repeatedly tried to appeal this decision.

In total, at least 11 criminal proceedings have been opened against Vavrysh and his related companies. The investigations are conducted by the NABU, the SAPO, and the SIB, with the Prosecutor General’s Office providing procedural guidance. Based on our materials, a number of cases have also been registered in the URPTI, for example, under part 3 of Article 191 of the Criminal Code of Ukraine.

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