In Odessa, a thermal power plant is suing a municipal utility for 3 billion in debt

Years of unpaid heating bills have led to one of the largest commercial disputes in Odesa in recent years. The city council has already become involved in the case, and the amount in dispute has exceeded three billion hryvnias.

This was reported by Intent, citing a ruling by the Commercial Court of Odesa Oblast.

The joint-stock company “Odesa Thermal Power Plant” filed a lawsuit against the municipal enterprise “Odesa City Heat Supply” to recover 3.18 billion hryvnias in debt.

According to the case file, the company is seeking to recover 2.32 billion hryvnias in principal debt, as well as inflation-related losses, 3% annual interest, and a late payment penalty. The total amount of the claims is 3,179,198,584 hryvnias.

The thermal power plant claims that the debt arose due to improper fulfillment of the terms of the contract for the supply of thermal energy, hot water, and related services. The case concerns payments for services provided between January 1, 2022, and March 31, 2026.

The Commercial Court of Odesa Oblast opened proceedings in the case on May 20, 2026. During the preliminary hearing, the court granted the defendant’s motion and joined the Odesa City Council to the case as a third party that does not assert independent claims regarding the subject matter of the dispute. According to the ruling, the next preparatory hearing is scheduled for July 2, 2026.

In addition, a million-dollar procurement contract for an Odesa municipal utility has come under scrutiny by law enforcement authorities due to a possible significant overpricing of materials. According to the investigation, in July 2024,the municipal enterprise “Odesa City Heat Supply” entered into anagreement with LLC “Truboizolkomplekt Trading House” for the supply of pipes, flanges, and elbows worth over 22.5 million hryvnias.

During the investigation, a forensic commodity appraisal was conducted, which determined that the actual market value of most of the purchased materials at the time the contract was signed was approximately 2.05 million hryvnias.

Анна Бальчінос