The Number of Utility Debts Has Grown 1.5 Times

Most of Ukrainians’ debts are for natural gas supply and distribution.

29 September 2021

The number of utility debts has grown 1.5 times in Ukraine over the year. August 2020 saw 294,789 debts, while their number increased by 155,964 in August 2021. The current number of debts in the Single Debt Register has reached 450,753. Utility debts account for 7% of overall debts in Ukraine.

Number of recovered utility debts
MonthDecember 2019January 2020FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuary 2021FebruaryMarchAprilMayJuneJulyAugust
Number of recovered utility debts227,360228,110235,506249,248259,269270,201278,973283,026294,789305,916318,629330,201342,232344,565359,649373,415387,169398,813411,655417,577450,753

Also, the overall number of debt case proceedings in Ukraine rose by 33% over the year. While 4,665,510 proceedings were opened in August 2020, the number increased to 6,219,371 in August 2021. The current debt recoveries account for 7% of all debt cases.

Overall number of debt case proceedings
MonthDecember 2019January 2020FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuary 2021FebruaryMarchAprilMayJuneJulyAugust
Overall number of debt case proceedings3,896,9143,884,3323,974,3924,126,8114,241,3864,392,1914,505,2494,542,6694,665,5104,752,8784,855,2424,972,6055,078,2735,103,2695,264,9215,414,7525,539,3575,651,5015,764,0385,849,0096,219,371

According to  the State Statistics Service, utility debts reached UAH 64.4 billion in August 2021. The biggest portion was owed for natural gas supply and distribution (UAH 23.7 billion), heating and hot water supply (UAH 20.3 billion), and electricity supply and distribution (UAH 7.1 billion).

Ukrainians’ debts by utility type, State Statistics Service of Ukraine
Natural gas supply and distribution23
Heating and hot water supply20
Electricity supply and distribution7
Centralized water supply and sewerage6
Apartment building management5
Waste removal services1

A person is recognized as a utility debtor in court with simplified procedure for this category of cases. It means that a case like this can be heard in absence of the parties and within a shorter time. If debtors fail to comply with court orders, they are listed on the debtor register. It is a standard procedure used by all debt-recovering bodies: utility companies, banks, and collectors. After that, executors can request a bank to arrest the debtor’s accounts and forcedly recover the debt. Apart from that, debtors are subject to a set of restrictions and prohibitions, i.e., they cannot use the arrested accounts, sign sale and purchase agreements at notary offices, leave the country, etc.

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