From September 4, the 'military pause' on utility debts has been lifted: what does this mean

Legislative Changes in Ukraine

As of September 4, 2025, a law has come into effect in Ukraine that lifted the 'military pause' on the statute of limitations for the recovery of utility debts. This means that creditors can once again go to court for the recovery of debts incurred by citizens during this pause.

Restoration of the Statute of Limitations

According to the new legislation, the statute of limitations that was paused during the COVID-19 pandemic from 2020 to 2023 is now being restored. Typically, the statute of limitations is three years. For the recovery of fines and penalties, the statute of limitations is usually set at one year, while for certain categories of claims it can last up to four years.

The statute of limitations is the period during which a creditor has the right to go to court to protect their financial interests. However, there are exceptional cases that can renew the statute of limitations, which include:

• military service
• participation in hostilities
• prolonged displacement
• serious health condition

Thus, the new regulations may affect numerous debtors who have accumulated utility debts during the 'military pause'.

Restoring the statute of limitations may be an important step for creditors seeking to recover their funds accumulated due to the debts of the population. This may also lead to a significant increase in lawsuits, which in turn could impact the debt burden on citizens. Time will tell how these changes will affect the financial stability of debtors and the overall economic climate in Ukraine.