AMU urges government to immediately lift freeze on community funds in place since 9 September

The board of the Association of Cities of Ukraine (AMU) has sent an official appeal to Prime Minister Serhiy Koretskyi demanding the urgent lifting of restrictions on financial operations by local self-government bodies. The document, dated 1 October, notes that payments by communities across the country have been frozen since 9 September. This poses a threat to preparations for the heating season, as municipalities are unable to purchase fuel, equipment, or carry out repair work to restore damaged infrastructure.

Funds are available, but access is restricted

According to the Association of Cities of Ukraine, the necessary funds are present in community accounts, and the payments formally comply with the requirements of Cabinet of Ministers Resolution No. 590. Despite this, payments are not actually being processed. This has resulted in communities being unable to pay for fuel for vehicles involved in clearing debris after shelling, as well as purchasing materials for setting up resilience points and repairing damaged facilities.

Threat to energy security

The issue of blocked payments has also affected the utility services sector. AMU notes that the restrictions impact energy facilities, heat supply systems, water supply and sewage systems, as well as electricity supply. The problem is particularly acute in the context of winter preparations.

In addition, the association emphasised that communities cannot even use funds received from international banks and credit institutions to restore infrastructure and prepare for the heating season.

"Блокування розрахунків громад із постачальниками енергоресурсів, палива, ремонтними бригадами, підприємствами з вивозу сміття та іншими призводить до наслідків, яких не зміг досягнути агресор обстрілами з початку повномасштабного вторгнення" (The blocking of community payments to energy resource suppliers, fuel providers, repair teams, waste disposal enterprises, and others is leading to consequences that the aggressor was unable to achieve through shelling since the start of the full-scale invasion), AMU stated.

Lack of official explanations

Representatives of the Association of Cities of Ukraine report that there are currently no documents officially explaining the reasons for the payment freeze. Meanwhile, the Ministry of Finance had informed about the government's adoption on 28 September of a resolution on ensuring the balanced execution of the state and local budgets in 2026 under martial law conditions. However, according to the association, the text of this document had not been published at the time the appeal was prepared.

AMU is convinced that there are no legal grounds for blocking community payments.

Demands on the government

The AMU board called on the Prime Minister to ensure the processing of payments that are critically important for the operation of heat, water, and electricity supply systems, the protection of critical infrastructure, the arrangement of shelters, and the elimination of the consequences of Russian shelling.

The association also requests the provision of the ability to finance aid for those affected by Russian aggression and for military units.

Among other AMU proposals is the non-levying of penalty sanctions on loans for local self-government bodies and municipal enterprises if the delay resulted specifically from the payment freeze. The association also demands a deferral of municipal debt obligations in such cases.

In addition, AMU called for an investigation into the causes of the payment freeze, which has been ongoing since 9 September, and to establish those responsible for this situation. According to the association's assessment, this may complicate community preparations for the heating season and the provision of services by social, medical, and educational institutions.

AMU warns that if payments are not unblocked, communities may face problems in ensuring adequate conditions for the operation of critical infrastructure, state and international institutions, as well as educational, medical, and social protection facilities.

It was previously reported that Kyiv is preparing for a difficult heating season in 2026–2027 against the backdrop of the risk of new Russian strikes on energy and heat infrastructure. According to Vitali Klitschko, nearly 50% of the planned work has been completed, and the city is creating a duplicate heat supply system, including over 1,000 MW of reserve heat generation and up to 200 MW of cogeneration capacity. Before winter, the city also plans to receive 12 mobile boiler houses, 10 high-capacity generators, and set up around 100 autonomous heating points.