During the meeting of the Congress of Local and Regional Authorities under the President of Ukraine on September 30, a Memorandum of Understanding was signed with an aim to settle problematic issues in the field of heating and hot water supply during the heating period of 2021/2022.

The document was inked by Prime Minister Denys Shmyhal, Minister for Communities and Territories Development Oleksii Chernyshov, Minister of Energy German Galushchenko, Deputy Head of the Office of the President Kyrylo Tymoshenko, Chairman of Naftogaz of Ukraine Yurii Vitrenko, Head of Lviv Andrii Sadovy, Head of Dnipro Borys Filatov, Head of Zhytomyr Serhii Sukhomlyn, Executive Director of the Association of Ukrainian Cities Oleksandr Slobozhan.

The President of Ukraine noted that preparation for the heating season is one of the most important issues on the agenda of the meeting, as this year the world is experiencing a gas price surge.

"It is not Ukraine - the problem is European gas prices. For the first time in Europe, it crossed the mark of a thousand dollars per thousand cubic meters. The issue of tariffs is critical for our country every year, but this year it is extremely difficult and can become acute, complex," stressed Volodymyr Zelenskyy.

For his part, the Prime Minister stressed that the Memorandum is based on an agreement that local authorities will not increase tariffs for heating and hot water in the upcoming heating season.

"The Cabinet of Ministers holds the position that cooperation and work as a single mechanism of all central and local government bodies are the foundation for the successful implementation of any strategy, reform or memorandum. Therefore, I personally emphasize that we are always open to constructive dialogue. I believe that most local leaders advocate the same position," said Denys Shmyhal.

The key points of the Memorandum also include an accord on uninterrupted gas supplies and financial support of communities by the state to ensure smooth operation of district heating providers and fixed tariffs.

"We are well aware that the budgets of some communities will not be capable to fully cover part of the expenses of heating supply companies to ensure their smooth operation and fixed tariffs. Therefore, the state provides a subvention to communities with an unsatisfactory index of tax capacity from the fourth quarter of 2021," said the Prime Minister.

Also, according to the Head of Government, the Memorandum clearly states that to provide the invariability of tariffs in 2022, the state will transfer and send to local budgets PIT (personal income tax) of 4%, i.e. an additional sum worth not less than UAH 11 billion.

"An important issue of the Memorandum remains the issue of gas supply to budgetary institutions. An agreement regarding the price has also been reached. "Naftogaz will make the appropriate deliveries - we have managed to find a reasonable compromise that will ensure both stable tariffs and uninterrupted supply," stressed Denys Shmyhal.

In addition, the 13.44% fuel excise tax will also be left to fill local budgets in 2022, the Prime Minister said, so that they can support communal heat producers and ensure an uninterrupted passage of the heating season.