The M17 Contemporary Art Center announced a property management scheme for the National Union of Artists. Here’s what you need to know.

The renowned contemporary art center M17 in Kyiv has announced that the property of the National Union of Artists of Ukraine (NSHU) is under threat due to opaque management schemes. What is known about this situation is detailed in the article by RBC-Ukraine.

The building located at Antonovicha Street, 102-104, originally belonged to the Kyiv Union of Artists, but a few years ago it came under the ownership of NSHU. M17 explained that the center rented a space of approximately 1400 square meters and timely paid rent and utilities. Additionally, M17 funded all expenses for the exhibition projects of artists who showcased their work there.

NSHU has its roots in the Soviet era and owns numerous properties in prestigious locations across the country. While the Union was a state institution in the past, it became a public organization following Ukraine's independence, retaining all this property.

According to the Union's Charter, it is a non-profit organization, meaning that all funds received must be directed towards the support and development of visual arts. However, the valuable real estate has repeatedly been the cause of various scandals, including the situation with M17.

In December of last year, M17's management learned that negotiations regarding the lease had to be conducted not with NSHU, but with LLC "SERVICE NSHU 2022" and its director Ivan Magey, who are authorized to represent the interests of the Union. Representatives of M17 stated that Magey informed them of a reduction in the lease term from 3 years to 1 year and an increase in the rent, otherwise, the premises where M17 holds art events would be leased to a supermarket.

M17 became curious as to why NSHU, whose activities should be related to art, was willing to evict an artistic organization from its premises in favor of a commercial one.

Subsequently, M17 discovered that back in 2022, NSHU had entered into a lease agreement with LLC "SERVICE NSHU 2022," which is a subsidiary of the Union itself. Under this agreement, the Union leased the premises to its own company for a purely symbolic rent of 500 hryvnias. "SERVICE NSHU 2022," in turn, intended to lease the premises at market prices. There was a certain logic to this scheme – to provide NSHU with funds for its activities.

However, as reported from open sources, initially "SERVICE NSHU 2022" was 100% owned by the Union, but later it sold a share in the company to the law firm "Mizernyuk and Partners." Now, holding 30%, this firm receives rental income from the Union's property, despite having no connection to art or NSHU.

It is also interesting to note that the director of "SERVICE NSHU 2022," Ivan Magey, serves as the director of the NSHU Directorate. At least, this is stated on his Facebook page. Furthermore, he refers to himself as a lawyer and "defender of the offender." This may indicate a direct conflict of interest, as a Union employee simultaneously serves as the director of a company that is partially owned by the Union and partially by private individuals.

Remarkably, there is at least one more company where Chernyavsky and Magey intersect - LLC "Housing Fund Maintenance Enterprise." This company is 24% owned by the Union, while the remaining 76% belongs to "SERVICE NSHU 2022." Moreover, the ultimate beneficiary of LLC "Housing Fund Maintenance Enterprise" is Chernyavsky.

What About Art

According to M17, they have invested millions of hryvnias into the center. Various artistic and educational events were regularly held there. Over 15 years, more than 200 artistic projects have been implemented, attracting over 1 million visitors. Throughout the institution's existence, over 1000 artists have participated in its projects. Therefore, the loss of the premises on Antonovicha could lead to the cessation of M17's activities.

"In fact, M17 plays a very important role, as we support artists and develop Ukrainian art. Even during the war, we provide artists with opportunities to exhibit their work and organize educational projects. This is especially important now, as artists fulfill a therapeutic function; in our space, they work with children, and under our circumstances, this is crucial for our survival as a nation. For creative individuals, it is vital to create and share their creativity with society. Despite the war, in January of this year, we welcomed 10,000 visitors. During wartime, some go to church, while others come to us. The Union of Artists should be interested in collaborating with us. This space we rent could be a flagship for NSHU. The Union of Artists is a long-term and important partner for us, and we can truly call ourselves a model example of NSHU's activities, which advocate for the values announced by this organization: art, enlightenment, and development,” says the center's director, Natalia Shpitkovskaya.

Natalia Shpitkovskaya

According to her, the utility bills alone cost M17 half a million hryvnias annually, not including expenses for its core activities. Last year, NSHU proposed new terms: an increase in rent payments and, in addition, the M17 center was required to compensate NSHU for taxes, particularly land tax. Moreover, this referred to taxes for the previous period. Shpitkovskaya also mentioned that the Center was willing to agree to such terms, but the Union needed to provide documents confirming that these taxes had been paid. No one ever saw these documents, and the amount in question was 700,000 hryvnias.

On December 30, 2024, the Union sent M17 its version of the agreement, which included clauses that had not been mentioned before: an increase in the rental rate threefold after the end of martial law, as well as once again regarding tax payments and a one-year contract term with the right to extension and the right to review the terms.

Moreover, M17 was required to hold two exhibitions of NSHU members within the year, meaning the Center would have to spend its own money on this, while M17 is a contemporary art center. "We would gladly provide Union members the opportunity to exhibit with us, provided that it aligns with the theme of our projects and the relevance of the proposals received. However, the choice remains with our experts and curators,” Shpitkovskaya states, "But the NSHU's requirement in this form creates a certain risk that it will impose for the exhibition works that do not fit the Center's concept. I emphasize that we are a center for contemporary art, not any art, and we must be independent in deciding what to exhibit. Independence is the essence of a contemporary art center like M17.”

In effect, this meant that M17 was responsible for not only rent but also any whims of the landlord. Previously, Shpitkovskaya notes, this was not the case.

Overall, all the proposed conditions collectively indicated that the Center was to be blackmailed every year, depriving it of the ability to plan its work for more than a year, the M17 director points out.

According to the head of M17, there was no opportunity to discuss the situation with NSHU Chairman Chernyavsky. He immediately redirected the question to Magey. Meetings with Magey were held with the participation of M17’s lawyers, but later he refused to discuss the agreement and presented the fact that either the Center accepted all the terms or prepared to vacate the premises.

"NSHU needs to earn money for its maintenance, which is understandable. The management is seeking ways to generate additional income. But is it really a good idea for a union of artists to lease its property to supermarkets, because, as they told us, it is significantly more profitable? With such a quantity of real estate, the management could achieve a more significant result. By the way, how much money from our rent goes directly to the Union, and not into someone else's pockets, I do not know. I don’t understand why the NSHU management has specifically targeted our profile organization while having vast exhibition spaces throughout Ukraine,” says the director of M17.

Shpitkovskaya insists that M17 is not against NSHU, but believes that the Union itself is harmed by its own leadership.

Meanwhile, M17 has received support from artists, art enthusiasts, and ordinary citizens on its social media pages – on Instagram and Facebook:

Recently, M17 also published an official statement urging all concerned individuals, artists, cultural sector workers, and members of the National Union of Artists of Ukraine to support the M17 Center for Contemporary Art in preserving this cultural institution and protecting modern Ukrainian art and the property of the National Union of Artists of Ukraine from opaque schemes and commercial manipulations.

"Soon, elections for the chairman of NSHU will take place. Therefore, the question of electing a person who