The State Treasury has partially unblocked payments to Lviv

The State Treasury Service of Ukraine has resumed processing payment orders from Lviv; approximately 20% of critical payments have been processed. Currently, the Treasury is processing payments submitted by September 21, 2026, while later documents remain pending.

Specifically, 40 million hryvnias ($971,000) has been allocated for the operation of the city’s electric transit system and the payment of salaries to tram and trolleybus drivers; funding for street cleaners’ salaries has also begun. At the same time, funds for private bus operators and compensation for subsidized transportation have not yet been transferred. Overall, it was reported this morning that a government agency had delayed payments totaling over 1.086 billion UAH ($26.34 million) for critical services, leading to layoffs of public utility workers.

Source: Lviv Mayor Andriy Sadovyi.

Andriy Sadovyi had previously warned of the risk of a collapse in the city’s municipal infrastructure due to payment delays by the State Treasury Service. According to the mayor, as of October 19, more than 1.086 billion hryvnias in city funds had been frozen, leading to wage arrears and the departure of employees from municipal utilities.

On October 1, the city officially appealed to the prime minister and relevant ministers. This situation affects not only Lviv but also other cities in Ukraine, which is why the Association of Cities has also appealed to the government.

In Lviv, private transit operators announced a partial suspension of service on city bus routes due to delayed payments for subsidized transportation. Due to a lack of funds, companies do not have enough money for fuel, and wage arrears have accumulated.