12:41 28.11.2016

President enacts bill restructuring debts of heating supply companies

Ukrainian President Petro Poroshenko has enacted bill No. 5273 bill settling debts of heating supply companies for energy consumed via reciprocal payments and debt restructuring passed by the Verkhovna Rada on November 3, 2016.

The paper envisages the creation of a register of companies participating in the debt settlement procedure. When companies were added to the register, the arrest of their accounts would be lifted.

The document describes gradual reduction of the debt for energy consumed.

If the procedure is observed by companies and the debt is fully paid, earlier accrued fines and penalties will be waived.

The bill was approved by the International Monetary Fund (IMF).

The debt of heating supply companies for natural gas consumed to produce heating and provide hot water services totaled UAH 18.7 billion as of July 1, 2016.

According to national joint-stock company Naftogaz Ukrainy, fine, penalty sanctions for tardy payments for consumed gas by heating supply companies totaled UAH 2.6 billion as of January 1, 2016 and grew 1.7-fold in H1 2016, to UAH 4.5 billion.

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