Despite ongoing court proceedings in case No. 160/34036/26 at the Dnipropetrovsk District Administrative Court and public outcry surrounding the scandalous distribution of funds, the Luhansk Regional State Administration (OVA), together with the State Fund for Support of Youth Housing Construction (Derzhmolodzhitlo), continue to execute their scheme.
Because the court rejected the motion for interim measures to suspend the contested Order No. 452, the ongoing selection of winners remains unblocked. The mechanism is operating at full capacity, demonstrating the complete defenselessness of public interests against the bureaucratic steamroller.
1. Failed Protection: Why the Court Did Not Halt the Distribution
Attempts to block this opaque distribution through interim injunctions hit procedural roadblocks. By a ruling of the Dnipropetrovsk District Administrative Court, the court refused to suspend Order No. 452 or prohibit the transfer of funds under "Register No. 2".
- The Court's Stance: The court noted that suspending a normative legal act of general application as an interim measure is permissible only in the presence of "obvious signs of illegality" that require thorough examination on the merits during trial, and assessing merits goes beyond interim relief.
- Practical Consequences: The absence of a judicial ban has given free rein to budget managers. The selection procedure and signing of loan agreements continue, creating a risk of irreversible legal consequences (the transfer of budgetary millions to final beneficiaries) before a decision on the merits is issued.
2. Who Actually Wins: Beneficiaries with "Empty Pockets" and Elite Appetites
An analysis of official asset declarations of individuals listed as recipients of preferential loans and subsidies through Derzhmolodzhitlo dismantles the myth of a social purpose for destitute internally displaced persons (IDPs).
Among the winners and beneficiaries are incumbent officials and individuals close to the nomenclature:
- Officials and Law Enforcement as Top Privileged Groups: Instead of war victims from the most vulnerable IDP categories, preferential loans with a 50–99% write-off of housing costs at state expense are received by staff of the Luhansk OVA apparatus, tax inspectors, Ministry of Justice employees, and the State Audit Service.
- The Declaration Asset Paradox: While genuine IDPs rent housing for years without any support, the declarations of certain "privileged" winners show striking contrasts: possession of luxury assets, expensive modern vehicles (such as a Tesla Model 3), or conversely, the ostensible declaration of minimal savings (in some cases equivalent to just a couple of hundred dollars), formally qualifying them as low-income to claim state millions.
3. The Impossibility of Halting the Process: A Systemic Risk to the Budget
The situation surrounding the distribution of 1.5 billion hryvnias in free cash balances of the Luhansk region and their absorption through tailored registers highlights severe systemic flaws:
- The Illusion of Transparency: The use of automated services like com serves merely as technical window dressing. The primary filter—the formation of closed candidate lists (Registers No. 2, 3, 4, 5)—is handled manually by officials.
- The Point of No Return: Physical disbursement of funds to contractors or real estate sellers via Derzhmolodzhitlo will make returning the funds to the national or local budget legally and practically impossible, even if plaintiffs prevail in court later.
- A Corporate Fund Instead of IDP Aid: Housing programs for displaced persons have de facto transformed into an internal instrument for enriching and securing the loyalty of the regional bureaucratic apparatus.
The contest goes on, the judicial machinery moves slowly, and budgetary millions are secured by those who need state aid the least. Public scrutiny and strict compliance monitoring of every single name on the final winner lists remain the only viable pressure tools.
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