Comprehensive Due Diligence Report on Beneficiaries and Market Analysis of Industrial Demolition Operators in Ukraine: Strategy for Replacing “Next Level Demolition” Contractor

1. Introduction and Executive Summary

1.1. Purpose and Scope of the Report

This report has been prepared in response to a strategic request to verify the Ukrainian economic origin of key players in the demolition services market and to find an equivalent or better replacement for the contractor “Next Level Demolition”. In the context of Russia’s full-scale aggression against Ukraine, the issue of capital origin (Country of Origin) has transformed from a mere compliance procedure into a matter of national security and operational business stability.

The scope of the study covers an analysis of over 15 legal entities operating in the demolition sector, building dismantling, and construction waste recycling. The analysis is based on data from state registers (EDRPOU), financial statements for 2021-2025, court registers, and open sources of information regarding the material and technical base of companies.

1.2. Key Findings and Recommendations

The conducted analysis allowed for the identification of critical risks among several well-known market players and the selection of a shortlist of reliable contractors who have confirmed Ukrainian origin and sufficient capacity to replace the current service provider.

1. Risk Factors: It was discovered that companies such as LLC “EKO-BUD-TRADE”, despite significant historical revenue volumes, are currently undergoing bankruptcy proceedings, making cooperation with them impossible. Groups of companies were also identified (for example, “Sfera-Group”) that have problems with VAT payer registration, creating tax risks for the customer.
2. Strategic Replacements: The most suitable candidates for replacing “Next Level Demolition” have been identified as:
   1. LLC “Express Techbud” – for large-scale infrastructure projects where logistics of removal and disposal are critical (own quarries and landfills).
   2. LLC “Southern Demolition Company” (PDK) – for complex industrial demolition with an emphasis on ecological recycling of materials.
   3. LLC “Forest-Ukraine” – as a reliable partner in the Western region with a CC3 class license and a wide range of general contracting services.

2. Geopolitical Context and the Imperative of “Ukrainian Origin”

2.1. Historical Background and Decolonization Policy

The demolition market in Ukraine operates in a unique historical and political context. The processes initiated during the Revolution of Dignity (Euromaidan), when the mass toppling of Soviet monuments (“Leninopad”) became a symbol of breaking with the totalitarian past, formed a new societal demand for space cleansing. The demolition of monuments to Lenin, Kutuzov, and other figures of the Soviet era was not simply an act of vandalism, but a conscious deconstruction of imperial markers.

Today, in wartime conditions, this process has gained new momentum. The European Parliament in its resolutions emphasizes the condemnation of totalitarian regimes and supports Ukraine’s efforts to protect historical truth. Demolition now concerns not only monuments but also emergency buildings destroyed by Russian aggression. In this context, engaging companies with Russian capital or opaque ownership structures in the work is considered a direct threat to “collective memory and identity”.

2.2. Legislative Requirements and Sanctions Policy

Ukrainian legislation and international partners require strict control of ultimate beneficial owners (UBO). Russia’s attempts to distort history and impose its ideology, particularly through indoctrination in occupied territories, force Ukrainian business to be maximally vigilant. Any connection of a contractor with the aggressor can lead to asset blocking, payment suspension, and criminal prosecution.

Therefore, the verification of “Ukrainian origin” in this report goes beyond a simple check of the director’s passport. It includes an analysis of connections, history of changes in registers, and financial flows to guarantee that funds paid for demolition will not be used against Ukraine.

3. Research Methodology and Data Sources

To ensure maximum reliability of results, a multi-level data verification system (OSINT – Open Source Intelligence) was applied.

3.1. Registers and Databases

The main verification tool was data from the Ministry of Justice of Ukraine, accessible through the aggregators Opendatabot, Clarity Project, and YouControl.

1. EDRPOU: Enterprise codes were analyzed for unambiguous identification of legal entities.
2. Change History: Changes in beneficiaries and managers were studied to identify attempts to conceal real owners.
3. Court Register: The presence of bankruptcy cases, debt collection, and criminal proceedings was verified.

3.2. Operational Analysis

To assess companies’ ability to replace “Next Level Demolition”, the following were analyzed:

1. Material and Technical Base: Availability of own (not leased) equipment, its specifications (hydraulic hammers, hydraulic shears, high-reach excavators).
2. Web Analytics: Analysis of official company websites for content relevance, list of services, and contact information.
3. Financial Indicators: Revenue assessment for 2023-2025 to determine market share and stability.

4. Analysis of Ukraine’s Demolition Market: 2025 Trends

4.1. Market Structure and Key Players

The market for infrastructure construction and demolition in Ukraine demonstrates high capital concentration. According to Opendatabot data, leaders in revenue in the road construction and infrastructure sector (which often includes demolition work) are giants such as “Avtomagistral-Pivden” (13.2 billion UAH) and the “Avtostrada” group of companies (10.83 billion UAH). However, these companies are more general contractors with a broad profile.

The specialized demolition market is represented by smaller but high-tech companies focused specifically on building liquidation and recycling. It is in this segment that a replacement for “Next Level Demolition” should be sought, as specialization guarantees better expertise and cost optimization.

4.2. Technological Shift: From Destruction to Recycling

Modern demolition in Ukraine is transitioning to a “Circular Economy” model. International donors such as Nefco finance programs for training Ukrainian specialists in Finland, where they adopt experience in safe demolition and handling hazardous waste (asbestos).

Cooperation with companies like Lotus Demolition and the use of Epiroc equipment (hydraulic attachments) are becoming quality standards. Customers increasingly demand not just waste removal to landfills, but its processing into secondary crushed stone, which reduces construction estimates.

5. Detailed Due Diligence of Recommended Candidates (Tier-1)

Below is a detailed analysis of companies recommended as a reliable replacement for “Next Level Demolition”. All have passed verification for Ukrainian origin.

5.1. LLC “Express Techbud“

5.1.1. Identification Data and Ownership

1. EDRPOU Code: 39618812.
2. Legal Address: Kyiv, Stepan Bandera Ave., 32.
3. Management: Gulyma Vladyslav Andriyovych (director since 2017).
4. Origin: Founders and beneficiaries are residents of Ukraine. No connections with sanctioned persons were detected.

5.1.2. Operational Capabilities and Advantages

“Express Techbud” is probably the most powerful player in the Kyiv and regional market in terms of resource base.

1. Equipment Fleet: The company operates a fleet of over 300 own dump trucks and 150 units of special equipment. This allows them to perform large-scale earthworks and demolition of huge industrial zones in short timeframes.
2. Equipment Range: The arsenal includes tracked and wheeled excavators, hydraulic hammers, hydraulic shears for cutting metal and concrete, crushers.
3. Vertical Integration: A key advantage is the availability of own granite quarries and waste processing sites. They are not dependent on third-party landfills, which is critical for large projects. The company offers secondary crushed stone and concrete rubble for sale, closing the recycling loop.

5.1.3. Financial Condition

The company demonstrates stable financial dynamics. Revenue for 2025 (projected/current) is approximately 127 million UAH, which significantly exceeds the 2022 figures (98 thousand UAH), indicating recovery of activity after the beginning of the invasion.

5.2. LLC “Southern Demolition Company” (PDK)

5.2.1. Identification Data and Ownership

1. EDRPOU Code: 44343096.
2. Legal Address: Odesa, Motorna St., 4.
3. Management: Tyshchenko Vitaliy Myroslavovych.
4. Change History: The registration actions history records the exit of beneficiary Kyshenevsky Volodymyr Mykolayovych. The current ownership structure is fully Ukrainian. Also mentioned is the related entity KU “Blagoustriy”, where LLC “PDK” is listed as a participant, which may indicate work with budget orders.

5.2.2. Unique Selling Proposition (USP)

PDK positions itself as an expert in complex industrial demolition.

1. Technology: The company emphasizes recycling – processing up to 60% of construction waste into secondary raw materials directly at the site. This corresponds to European “Green Reconstruction” practices.
2. Equipment: They claim to have “the largest excavator in Ukraine” in their fleet of 25 heavy equipment units. They specialize in high-reach demolition and blast demolition methods.
3. Geography: Although the base is located in Odesa, the company is mobile and works throughout the country.

5.3. LLC “Forest-Ukraine“

5.3.1. Identification Data and Ownership

1. EDRPOU Code: 37320080 (PE) and 35915064 (LLC “Lisotekhnichna Kompaniya”).
2. Legal Address: Lutsk, Volyn Oblast.
3. Owners: Zhuravinsky Valeriy Kazymyrovych (50%) and Kocherzhat Mykola Mykhaylovych (50%).
4. Origin: 100% Ukrainian private capital.

5.3.2. Operational Capabilities

This is a powerful regional player that has grown into a national operator.

1. CC3 License: Having a license for work with the highest consequence class (CC3) allows them to work on high-risk facilities, including demolition of factories, elevators, and high-rise chimneys.
2. Diversification: Besides demolition, the company is engaged in concrete road construction and residential development (residential complex “Kolos”). This indicates financial stability.
3. Finances: Revenue of PE “Forest-Ukraine” in 2025 amounted to over 16 million UAH, demonstrating growth compared to 2023-2024.

5.4. LLC “TechBudMechanika” (TBM)

5.4.1. Identification Data and Ownership

1. EDRPOU Code: 38639255 (LLC “Tekhbudmekhanika-Spetskontrakt”) / 36581544.
2. Legal Address: Kyiv, Mokra St., 3.
3. Management: Bieloborodov Radym Olehovych.
4. Origin: Ukrainian registration, operating since 2013.

5.4.2. Specialization

“TechBudMechanika” offers an engineering approach to demolition.

1. Services: Full cycle – from obtaining permit documentation to final site planning.
2. Equipment: They use hydraulic hammers and hydraulic shears for selective demolition in dense urban development conditions. Actively engaged in waste processing.

6. Analysis of Risk Assets and Problem Companies (Red Flags)

An important part of finding a replacement is avoiding problematic contractors. The following companies, despite their market visibility, have significant drawbacks.

6.1. LLC “EKO-BUD-TRADE”: Bankruptcy Case

1. EDRPOU Code: 39532133.
2. Status: ⛔ Bankruptcy proceedings.
3. Analysis: As of July 29, 2024, proceedings were opened in bankruptcy case №910/7481/24. Previously, the company was managed by Budnik Oleksandr Olegovych. Despite the fact that in 2024 the company showed revenue of 359 million UAH (the main customer was Municipal Enterprise “Directorate for the Construction of Road and Transport Structures of Kyiv”), the current legal status makes any new cooperation extremely risky. There is a high probability of account blocking and inability to fulfill obligations.

6.2. “Sfera” Group (LLC “NK Sfera Group”, LLC “Sfera-Group”)

1. EDRPOU Code: 37615212 / 40404977.
2. Status: ⚠️ Tax risks.
3. Analysis: LLC “NK Sfera Group” has a cancelled VAT payer certificate due to “absence at the registered location”. This is a “red flag” for the tax service, which may lead to non-recognition of tax credit for counterparties. The company’s website is unavailable, which also indicates cessation of active commercial activity or reorganization.

6.3. Brand Identification Problem “Destroy”

The market has several entities with names containing the word “Destroy”, which can be misleading:

1. LLC “Destroy Yug” (Odesa): Owner Kulyak Serhiy Tymofiyovych. Activity code 43.11 (Demolition). Real construction company.
2. Destroy.com.ua (Kyiv): This is an entertainment service (“Rage Room”), where they offer breaking dishes and equipment for stress relief. Not a construction contractor.
3. Destroy.org.ua (Poltava): Metal scrap collection point and metal structure demolition.

Recommendation: When choosing a contractor, it is necessary to clearly verify the EDRPOU code. For industrial demolition, only LLC “Destroy Yug” or the Poltava unit is relevant, if it concerns metal scrap.

7. Comparative Matrix of Replacement Candidates

For management decision-making, a comparative table of the main characteristics of recommended companies is proposed.

8. Additional Market Players (Tier-2)

8.1. LLC “Demontazhnik“

1. Specifics: The company emphasizes 24/7 operation without weekends.
2. Services: Manual and mechanized demolition, chimney demolition, emergency work.
3. Contacts: Based in Kyiv (Volynska St., 65).
4. Assessment: Good option for emergency or urgent work on a smaller scale than “Express Techbud”.

8.2. LLC “UTBK“

1. Specifics: Provide special equipment rental services (JCB excavators, Renault/Ford dump trucks).
2. Owner: Marchuk Galyna Hryhorivna.
3. Assessment: Suitable as a subcontractor for equipment rental if the main contractor’s own capacity is insufficient.

9. Strategic Recommendations

Based on the conducted analysis, the following action algorithm is recommended for replacing “Next Level Demolition”:

1. Priority Definition:
   • If your facility requires removal of large volumes of waste (thousands of tons) in short timeframes – the unrivaled leader is LLC “Express Techbud”. Their fleet of dump trucks and own disposal sites minimize logistical risks.
   • If the facility is a complex engineering structure (factory, elevator) and requires on-site material processing to save costs – choose LLC “Southern Demolition Company”. Their experience in recycling and working with high-rise structures is best in class.
   • If the project is located in Western Ukraine or requires a comprehensive approach (demolition + new construction) – LLC “Forest-Ukraine”.
2. Compliance Check:
   • Before signing a contract, be sure to request a fresh extract from the USR and a certificate of no tax debt to avoid situations like with the “Sfera” group.
   • Verify the availability of licenses for handling hazardous waste if the site contains asbestos or chemical residues (Nefco standard).
3. Contracting:
   • Include in the contract clauses on responsibility for ecological waste disposal, as the customer often bears legal responsibility. Recommended companies (PDK, Express Techbud) have appropriate permits.

10. Conclusions

The Ukrainian demolition market in 2025 is mature and technological. The departure from Soviet practices and Russian influence has formed a pool of professional companies with transparent ownership structures. “Next Level Demolition” can be effectively replaced by one of the market leaders – Express Techbud or PDK, depending on the specifics of your project. Identified risks regarding other players (Eko-Bud-Trade, Sfera) emphasize the importance of thorough preliminary analysis conducted in this report.