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Naftogaz blocks accounts of 69 municipal heating companies, disrupting winter preparations – association

Naftogaz Ukrainy has blocked the accounts of 69 municipal heating companies through the courts, which threatens to completely halt their operations, disrupts the implementation of resilience plans and makes preparations for the upcoming heating season impossible.

This was stated by Executive Director of the Association of Ukrainian Cities Oleksandr Slobozhan during the roundtable talks "Transformation of municipal heat supply enterprises into energy companies: What is changing and how to act" at Interfax-Ukraine, organized by the Association of Critical Infrastructure Operators and the Association of Ukrainian Cities.

"We are already recording blocked accounts at 69 municipal heating companies. These include Zhytomyr, Zviahel, Kropyvnytsky, Lozova, Starokostiantyniv... A large number of communities could be listed. This means blocking the operation of the enterprise altogether. And this is the biggest crime taking place today for us as consumers. Because when we approach the heating season, there will be no one to supply heat and water. There simply will be no one," Slobozhan said.

He said the blocking of accounts would lead to the bankruptcy of municipal heating companies and the loss of specialists, including due to the cancellation of their reservation from mobilization.

At the same time, Slobozhan said that municipal heating companies' accounts are being blocked by Naftogaz over gas debts that are much smaller than the state's debts to heat supply companies for compensating the difference in tariffs.

"For example, the state owes the municipal heating company in Zhytomyr UAH 900 million, while the enterprise owes Naftogaz more than twice less – UAH 400 million," the association's head said, describing the situation.

He also cited the example of the municipal heating companies in Starokostiantyniv, Khmelnytsky region, noting that the enterprise's debts of UAH 56 million had accumulated various charges and increased to UAH 77 million, and this was under only one of the contracts with JSC Naftogaz Trading.

Slobozhan said that blocking accounts would ultimately lead to a further increase in debts.

"The old problems in the operation of municipal heating companies that remain, namely the seizure of accounts by Naftogaz, today threaten any installation of any equipment provided by donors and any preparation for winter," Executive Secretary of the Association of Critical Infrastructure Operators Ruslan Holub said on his part.

He expressed hope for the introduction of a multilevel dialogue involving a number of stakeholders, such as the ministries of energy, finance, economy, communities and territories development, and Naftogaz itself.

"The old critical problem with debts effectively makes any further development of heat supply impossible and creates enormous risks," Holub said.

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