Seizure of regional state administrations may block budget financing of relevant regions, executive director of the International Bleyzer Foundation Oleh Ustenko told ForUm in a comment.

According to the economist, it affects the procedure of financing from the central budget to local ones. "Moreover, the Finance Ministry and State Treasury have all the rights to suspend transactions until the situation is stabilized. Obviously it will affect the dynamics of payments," the expert said.

As of the year beginning the common account of the State Treasury had 1.7 billion hryvnias, four times more than last year. "Thus, means are enough, but first they must arrive at destination. Some of payments had been financed before seizures of administrations, but not all and not everywhere," he added.

According to his estimations, destabilization not only complicates the transaction procedure, but may also tempt local officials to delay payments for local or personal purposes.

"Such purposes are not always corruptive. The fact is that the situation with central budget financing has been complicated since 2013, and some officials may use the "revolution" as a pretext to focus on some preferable areas, like completion of abandoned or poorly financed projects," Ustenko summed up.


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