Avtostrada Group has announced a critical shortage of funding for road repairs in Ukraine. According to the company's founder, Maxim Shkil, large-scale works may be halted from 1 June due to the state's debts, which already exceed UAH 6 billion.
State debts threaten road repairs
According to information released by the founder of Avtostrada Group« By Maxim Shkil, large-scale road repairs in Ukraine may stop as early as the beginning of summer. In his address, he stated that the state had allocated only UAH 3 billion out of the UAH 52 billion envisaged by the President. Contractors, including Avtostrada, are forced to carry out the work at their own expense, which leads to the accumulation of debts. For more information about the situation, see Maxim Shkil's message.
The situation with road works financing
At the beginning of May, the state's debt to contractors for road repairs exceeded UAH 6 billion. If the situation does not change, the companies will be forced to stop the work completely from 1 June. According to Maksym Shkil, credit lines and own financing are limited, and contractors' resources are running out.
Road repair companies have been operating at a loss for several months now, using their own funds. This threatens not only the current large-scale construction season, but also the future state of road infrastructure across the country.
Impact on road infrastructure and the economy
Stopping repair work could have long-term consequences for Ukraine's transport system. The road infrastructure is already under considerable strain due to martial law, and a delay in repairs will lead to a deterioration in road quality.
In addition, the suspension of work will mean the loss of jobs in the industry, reduced orders for related businesses and lower tax revenues to the budget. In the long run, this could affect logistics, traffic safety and transportation costs.
Why it matters
Problems with financing The lack of road repairs in Ukraine could lead to a large-scale work stoppage as early as 1 June. This will affect both road conditions and economic stability in a number of regions. Resolving the issue of paying contractors' debts is critical to maintaining infrastructure and supporting the economy in times of war.
