Several properties have already been sold, mostly to Ukrainian and Israeli citizens. Some are already living in them.

Falsified documents claimed that the residential complex was built before 2001, which, according to Bulgarian law, would provide immunity from destruction. Yet satellite images provide evidence that it was only built after 2023.

When the project was first spotted, the corporation received 20 fines for illegal logging. The ministry of agriculture ordered that the illegal buildings must be removed. Varna authorities are set to order the demolition of 13 buildings that haven't been sold yet.

The company behind the construction is KYB Corporation, owned by Ukrainian oligarch Oleg Nevzorov. He has previously been under investigation for money laundering, human trafficking, drug trafficking, and connections to Russian intelligence. In July 2025, he was banned for “national security” reasons, but then unbanned two weeks later. The reasons were not made public.

Nevzorov has defended the project, insisting that he is investing in the local economy. He has reassured buyers that he would help with any legal battles and appeal any demolition plans.

How did we get here?

Senior analyst at Bulgaria's Center for the Study of Democracy, Tihomir Bezlov, told us that the developments followed a “series of so-called land swaps involving the exchange of low-value plots from the country's interior for forested land in the most sought-after zones around resorts and major cities.” In short: companies traded inland plots for prime land at prices that didn't reflect real market value.

The European Commission has ruled this mechanism unlawful, all the way back in 2014.

Once built on, stopping such developments proved nearly impossible: in most cases, Bezlov said, court rulings favour large corporations over the public good.

“This trend can be linked to the construction boom that began after 2001, when Bulgaria started EU accession negotiations – a period that has been accompanied by widespread corruption at both local and national levels,” Bezlov continued.

The European Commission said it is “following the situation closely.” Bulgaria has previously been referred to the EU Court of Justice for failure to respect Natura 2000 obligations and could face repercussions for its lack of compliance and inadequate protection of an EU-protected site.