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Thirteen floors above a snow-covered complex on the outskirts of Kiev, in a half-built high-rise, Egor Popov wondered aloud when the warren of dusty rooms would be ready for move-in: maybe next year, probably not.

Presales on the 1,210-unit Sun Gates fourth wing, still a concrete-and-brick skeleton accessible only by a shaky open-air elevator, may be delayed, he said. Not because of a lack of financing or demand for flats. The issue is the nine layers of red tape and graft requests that are part of finishing the project, said Popov, a spokesman for TMM Real Estate Development Plc (TR61), Ukraines only publicly listed developer.

A year after Ukrainians rose up against the pro-Russian policies of then-President Viktor Yanukovych, business leaders still wait for an end to corruption and cronyism, promised by the revolutions leaders. Even as war rages in the east and the deepest recession since 2009 shows no sign of lifting, the president, premier and foreign minister said in the past week that graft is the nations biggest threat. Ukraine ranks as Europes worst on Transparency Internationals corruption index.

Man cannot live by patriotism alone, said Popov as blue-and-yellow Ukrainian flags fluttered from balcony railings across the courtyard. The year thats passed hasnt brought many positive things to ordinary people. Bureaucracy and corruption just havent changed.

Prime Minister Arseniy Yatsenyuk said to lawmakers on Nov. 26 that he has been less than successful at rooting out corruption, though he refuted claims his administration hasnt tried. Close

Prime Minister Arseniy Yatsenyuk said to lawmakers on Nov. 26 that he has been less... Read More

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Prime Minister Arseniy Yatsenyuk said to lawmakers on Nov. 26 that he has been less than successful at rooting out corruption, though he refuted claims his administration hasnt tried.

As foreign investors flee the former Soviet republic, Ukraine relies on a $17 billion loan from the International Monetary Fund to stay afloat. The hryvnia has lost 45 percent against the dollar this year, the biggest decline among all currencies tracked by Bloomberg. Central bank reserves are at $12.6 billion, the lowest level since March 2005.

It may get worse. IMF negotiators left Kiev on Nov. 25 without an agreement needed for disbursement of a $2.8 billion installment of the loan. Two days later, lawmakers met one of the key concerns by agreeing on a government coalition, a month after snap parliamentary elections.

Read more:
Ukraine Revolution Fails Business as Graft Envelops Bureaucracy