Autostrada reveals UAH 15 billion debt that forced it to halt work
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Autostrada (Photo: Autostrada)
Ukraine owes Autostrada about UAH 15 billion ($360 million) for completed work, while the company hopes funding for key projects will resume, founder Maksym Shkil told Interfax-Ukraine on Sept. 21.
"The total amount owed to the company for completed work is about UAH 15 billion, of which UAH 6.5 billion is already with the Treasury, but these payments have not gone through for about a week. We also know that capital expenditure payments from the state and local budgets have been suspended nationwide. This effectively means that the state's plans to prepare for winter cannot be implemented because their financing has been suspended," Shkil said.
He stressed that the decision "came out of nowhere in a single day, without any discussion or communication. We were simply presented with a fait accompli," forcing businesses to urgently adjust their plans. Work on Autostrada projects will continue through the end of September, but in practice, the company will be winding down production chains and mothballing sites.
Among the completed but unpaid projects, Shkil cited repairs to major highways, where the company financed about 40% of all such work in Ukraine this year from its own resources.
"We had agreements that once the reserve fund was replenished, these costs would be reimbursed from it. That is part of the debt. There are also roads in frontline areas, protection of energy facilities and the Zaporizhzhia-Tomakivka-Marhanets water pipeline, which has supplied water to more than 1 million residents of Dnipropetrovsk Oblast following the destruction of the Kakhovka dam," he said.
Regarding Kyiv, Shkil said this year's plans for construction of the metro extension to Vynohradar were revised after the city cut the project's budget from UAH 10 billion to UAH 1.6 billion. However, the company remains on schedule there and at its other sites. Kharkivske Highway was scheduled for completion by Dec. 1, European Union Square near the future Varshavska metro station by Dec. 15, and the interchange near Chernihivska metro station by Dec. 28.
"We sincerely hope for a constructive approach from Prime Minister Koretskyi. There needs to be dialogue with businesses. Some expenditures clearly need to continue, and debts need to be repaid. I remain positive about many things, I believe in Ukraine, and we are doing everything we can to support its resilience and economy and fulfill all our tasks. We understand the impact that the quality of infrastructure has on the country's economy as a whole. So we hope that financing will be restored at least for key projects," Shkil said.
Construction company Autostrada previously announced that it was suspending work at all its state-funded projects after the Finance Ministry halted financing for capital expenditures.
On Sept. 15, lawmaker Olha Vasylevska-Smahliuk, a member of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, said Ukraine was financing only social spending, salaries for public-sector employees and military expenditures.
Prime Minister Serhii Koretskyi, meanwhile, said the state of Ukraine's public finances was nearing a critical point. According to him, delays in passing the necessary legislation could cost Ukraine a significant portion of $29.5 billion in international financing.
On Sept. 4, Finance Minister Serhii Marchenko said Ukraine had not faced such a strained budget situation since the start of Russia's full-scale invasion in 2022. He also called for renewed use of frozen Russian assets under a new plan for managing them.
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