A critical situation regarding local budget financing has emerged in Ukraine. Starting from September 9, 2026, a significant portion of territorial communities' payments has been blocked. This has made it impossible to properly prepare regions for the upcoming heating season, carry out urgent repairs, and execute other vital calculations despite the availability of necessary funds in municipal accounts.

The Essence of the Crisis and the Threat to Critical Infrastructure

The Association of Ukrainian Cities (AUC) sent a strict appeal to Prime Minister Serhiy Koretsky, demanding the immediate unblocking of budget payments. According to the AUC, despite payment orders complying with the requirements of Cabinet Resolution No. 590, local authorities are deprived of the opportunity to purchase fuel for medical vehicles and shelling aftermath response vehicles. In addition, payments for equipment and repair work for educational, medical, and social institutions, as well as the setup of Invincibility Points, have been halted.

Contradictory Data

While the Association of Ukrainian Cities reports large-scale and unauthorized blocking of accounts, the expert community and parliamentary representatives point to systemic budgetary difficulties. Roksolana Pidlasa, Head of the Verkhovna Rada Budget Committee, previously reported that the Ministry of Finance was forced to postpone UAH 39 billion in capital expenditures to December due to a shortage of funds. Meanwhile, AUC Head Advisor Oksana Prodan emphasizes that such actions violate the state budget law, as the government has no right to independently change financing procedures without parliamentary approval. An additional factor of tension remains the long-standing issue of the state's failure to reimburse heat supply companies for the difference in tariffs, which exceeded UAH 64 billion by the end of 2025.

Demands on the Government and Possible Consequences

The AUC Board urges the Cabinet of Ministers not only to resume payments but also to stop charging communities fines for loan arrears caused by government restrictions. The Association also insists on holding officials accountable whose actions led to the paralysis of municipal services. Experts warn that if the status quo remains, Ukraine will face mass lawsuits against the government and a critical risk of disrupting infrastructure preparations for winter colds.