In one region, non-critical procurements suspended due to lack of funds: communities complain about payment blocking

In Chernihiv Oblast, amid a budget shortage, authorities decided to focus funding on the most important community needs, postponing procurements that are not critical. At the same time, local authorities are waiting for the unblocking of payments for utilities and fuel. Similar problems have arisen in other regions of Ukraine as well.

The Chernihiv Oblast Military Administration reported this on October 13 following a meeting of OVA Head Viacheslav Chaus with district and territorial community leaders.

Due to limited financial resources, communities were advised to suspend secondary procurements, including paving stones, printers, and laptops, and to direct available funds to critical needs.

"Paving stones, printers, laptops and similar procurements are on pause. We finance only supercritical things", said Chaus.

In Chernihiv Region, Payments Expected to Be Unblocked

According to the OVA head, the first-priority funding area remains community resilience plans, which involve preparing critical infrastructure for possible disruptions in electricity, heat, and water supply.

Among other priorities are support for the military, meeting the needs of internally displaced persons, and preparation for the winter period.

Chaus specifically raised the issue of processing payments for fuel and lubricants. According to him, the regional authorities have already appealed to the government with a request to resume relevant transactions.

"Regarding fuel and lubricants, we count on payments in the coming days – asked government officials for this" the regional head said.

The OVA also expects utility payments to be unblocked.

During the meeting, community leaders presented a list of expenses needing priority funding. In particular, this includes procurements for the military, the purchase of housing for displaced persons, the urgent repair of school buses, and additional winter preparedness measures.

Chaus instructed to prepare concrete proposals on payment categories that should be processed first and foremost, in order to discuss them with the government.

Association of Cities Reported Payment Blocking for Communities Across Ukraine

Funding problems have arisen not only in Chernihiv region. The Association of Ukrainian Cities (AUC) reported that local governments have been facing limitations when making payments through the State Treasury Service for about a month.

According to the Association, difficulties arise even when funds are available in local budget accounts and the respective payments comply with the requirements of government resolution No. 590.

As early as October 1, the AUC board appealed to Prime Minister Serhii Koretskyi demanding the immediate unblocking of community payments.

According to the organization, the restrictions have been in effect since September 9 and have affected not only capital expenditures but also the funding of vital services.

In particular, communities report problems with paying for:

• fuel for emergency service vehicles and machinery used to eliminate the consequences of shelling;
• equipment and repair work in medical, educational, and social institutions;
• preparation of heat and water supply facilities for winter;
• restoration of damaged infrastructure and establishment of resilience centers;
• services of municipal enterprises, including waste collection.

On October 12, the Association of Cities reiterated the need to restore payments. The organization warned of risks to the operation of medical facilities, public transport, water supply, sewerage, and other public services.

Local government representatives also asked the government to settle the issue of fines that may be imposed on communities for late payments to contractors and creditors.

It should be noted that the claim about blocking even critical payments is the position of the Association of Cities. The government officially attributes the introduced financial restrictions to the need to ensure priority state expenditures.

Government Confirmed Temporary Suspension of Non-Priority Expenditures Financing

In late September, Prime Minister Serhii Koretskyi said that due to a shortage of funds and delays in international financial assistance, Ukraine is forced to switch to stricter economy of budget resources.

According to him, expenditures that are not considered priority and critically important will be suspended until the necessary funding from international partners arrives.

At the same time, the government promised to ensure timely financing of defense needs, pensions, social benefits, and salaries for public sector employees.

On October 6, Koretskyi met with local government representatives and the head of the State Treasury Service.

After the meeting, the prime minister stated that the government understands the concerns of communities and, together with the Ministry of Finance, is working on proposals to restore necessary payments.

According to the head of government, the speed of returning to full financing will depend, in particular, on the receipt of international aid.

Budget Restrictions Already Impacting Regional Winter Preparedness

As previously reported by "Kurs Ukrainy," the effects of delays in treasury payments were also reported in Ivano-Frankivsk.

Local authorities warned about the risks of delayed salaries for municipal enterprise employees, disruptions in public transport operation, and difficulties in the construction of backup boiler houses before the heating season.

Difficulties in processing payments for energy resources were also reported in Lviv.

Thus, the situation in Chernihiv region reflects a broader problem with financing local budgets. Despite the need to cut secondary expenses, communities emphasize that payment delays are already affecting critical infrastructure and winter preparation.

Currently, the exact terms for the restoration of all deferred payments are not determined. In Chernihiv region, it is hoped that payments for fuel can be processed in the coming days.

Based on materials from: Chernihiv OVA, Association of Ukrainian Cities, Cabinet of Ministers of Ukraine