This warning was issued by Oleksandr Slobozhan, Executive Director of the Association of Ukrainian Cities (AUC), during a roundtable discussion hosted by Interfax-Ukraine.
Scope of the Crisis and Its Consequences
Account freezes have been reported in cities including Zhytomyr, Zviahel, Kropyvnytskyi, Lozova, and Starokostiantyniv, among many others. Slobozhan emphasized that these restrictions lead to:
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Total operational shutdown: Companies cannot perform daily maintenance or emergency repairs.
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Failed winter prep: The inability to procure materials or service equipment ahead of the heating season.
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Risk of bankruptcy: Legal gridlock pushes municipal utilities toward insolvency.
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Brain drain: Financial instability leads to a loss of specialists, exacerbated by the potential loss of "reserved" status (deferment from mobilization) for employees.
The Debt Imbalance
The AUC points out a critical irony: Naftogaz is blocking accounts over debts that are significantly smaller than what the state owes these same companies in unpaid tariff difference compensations.
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Example — Zhytomyr: The state owes the local DHC 900 million UAH, while the company’s debt to Naftogaz is less than half that amount — 400 million UAH.
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Example — Starokostiantyniv: An original debt of 56 million UAH ballooned to 77 million UAH due to penalties and interest charged by Naftogaz Trading.
Impact on International Aid
Ruslan Holub, Executive Secretary of the Association of Critical Infrastructure Operators, noted that frozen accounts prevent the installation of energy equipment provided by international donors.
"The old problem of debt prevents any further development of heat supply and creates colossal risks for consumers," Holub stated. He called for an urgent multi-level dialogue involving the Ministries of Energy, Finance, Economy, and Community Development to resolve the crisis before temperatures drop.
