The state has frozen financing for improvements: will enterprises receive money for the work performed?

The Cabinet of Ministers of Ukraine has suspended financing of a number of non-critical construction and repair projects due to a shortage of budget funds. However, such a decision does not exempt state customers from the obligation to pay enterprises for work already performed. In the event of a delay in payment, contractors may demand compensation and go to court.

Will enterprises receive payment for work performed

Due to the difficult financial situation, the government has postponed financing of certain capital repairs, reconstructions and other improvement projects that are not of critical importance.

This decision affected both private and municipal enterprises that perform work under state contracts.

At the same time, according to lawyer Andriy Shelykh, Ukrainian legislation does not establish differences between private and municipal enterprises in terms of the right to demand payment for services provided.

Therefore, regardless of the form of ownership, contractors have the right to demand that customers fulfill contractual obligations.

Does the lack of budget funds exempt from liability

The lack of funding is not a force majeure circumstance that automatically exempts state bodies or local self-government bodies from liability for breach of contract.

According to Article 611 of the Civil Code of Ukraine, breach of obligation may entail legal consequences, in particular the payment of a penalty, if this is established by the contract or law.

Thus, if the customer does not make payment within the period specified in the contract, the enterprise may demand repayment of the debt and the application of sanctions provided for by law.

What does judicial practice say

As the lawyer notes, the corresponding position is confirmed in the practice of the Supreme Court.

In particular, in the resolutions of May 21, 2026 in case No. 910/5316/25 and July 21, 2026 in case No. 916/2903/22, according to the expert, the court proceeded from the fact that the absence of budget appropriations does not exempt the state customer from liability for late payments.

This means that enterprises that have fulfilled their contractual obligations can protect the right to payment in court.

At the same time, the possibility of collecting penalties depends on the terms of the specific contract and the circumstances of the case.

Why did the government suspend funding

The reason for limiting expenditures was the state budget deficit and delays in international financial assistance.

The government decided to postpone financing of capital repairs and reconstructions that are not priority needs.

Despite this, the suspension of budget funding in itself does not terminate the validity of concluded contracts and does not cancel the obligation of customers to pay for properly performed work.