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October 19, 2023The heating season in Ukraine is at risk of disruption due to a lack of funds for repair work and the creation of emergency fuel reserves. The government has not allocated 36 billion hryvnias in compensation to local communities, and in some cases, they plan to even take back a portion of these funds.
The Mayor of Kiev, Vitaliy Klitschko, stated that the capital did not raise heating tariffs for this heating season, so residents are being asked to pay for the provided utilities on time, as the stable functioning of housing and communal services depends on it.
“The debt that the state has promised to pay for the second year in a row now amounts to 6.8 billion hryvnias. That is, local authorities have not raised tariffs for the population, but the cost of all components has increased,” said the mayor of the capital, Vitaliy Klitschko.
A similar situation is observed throughout Ukraine.
“There are no funds for repairs and the creation of emergency reserves for the entire heating season. If the government does not have the funds, then let them consider them as payment for gas,” says the president of the inter-industry association for the development of heating systems, “Ukrteplokomunenergo,” Arsenti Blashchuk.
It’s worth noting that “Naftogaz” supplies fuel to heating companies, and their debts have reached nearly 100 million hryvnias. Communities were planning to cover the losses of heat suppliers, in part, from the income tax paid by individuals, including the salaries of military personnel. This was announced by the Association of Ukrainian Cities. However, the government decided to take this collection away from local self-government.
In other words, communities may lose up to 100 billion hryvnias.
“Effectively, this destroys decentralization. The funds should remain at the local level. I advocate for strengthening responsibility for the distribution of these funds and increasing public control over their use. The use of these funds should be restricted. In particular, if it’s for the capital repair of non-critical infrastructure, then the Cabinet of Ministers should adopt a ban,” believes Ilya Neshodovsky, the head of the analytical department of the ANTS network.