Communities reported blocking of critical payments before the heating season

Ukrainian communities have been unable to make some payments since the beginning of September even with money in their own accounts. According to the Association of Ukrainian Cities, the restrictions affected the purchase of fuel, infrastructure repairs, preparation for the heating season, and ensuring the operation of communal institutions.

This is stated in the appeal of the Association of Ukrainian Cities to Prime Minister Serhiy Koretskyi, published on October 2.

The AUC claims that the problem has existed since September 9 and concerns payments that comply with the requirements of Cabinet Resolution No. 590 on conducting treasury operations under martial law.

According to the association, municipalities cannot pay for fuel for vehicles used to provide medical care and eliminate the consequences of Russian shelling. Separate payments for equipment and works for medical, educational, and social institutions have also been stopped.

The restrictions also affected preparations for winter. In particular, communities report the inability to pay for some equipment and works for energy facilities, to prepare points of invincibility, and to restore infrastructure damaged by attacks.

Separately, the Association of Cities points to problems with settlements with suppliers of energy resources and fuel, repair crews, water supply and waste removal enterprises.

The AUC Board appealed to the Prime Minister demanding the resumption of payments. The association also proposes temporarily not to charge communities penalties for overdue loans and late payments if the delay arose due to the inability to make a payment through the treasury.

The statements of local self-government appeared against the background of the austerity regime introduced by the government. On September 28, the Cabinet of Ministers reported that due to the delay in part of international financing, it decided to postpone non-priority expenditures.

The government stated that it will primarily continue to finance defense, pensions, social benefits, and salaries of public sector employees. Among the expenditures that should be postponed, the Cabinet named new construction, non-critical reconstructions and major repairs, as well as landscaping.

At the same time, the position of the Association of Cities is that the actual restrictions affected a much wider range of operations, including expenditures directly related to the work of communal services, energy resilience, and elimination of the consequences of war.

Earlier, AUC representatives stated that the volume of community payments suspended could amount to about 20 billion UAH. The government has not publicly announced an official separate decision on a complete blockage of local budget settlements.