Ukrainian Public Broadcaster Has All Accounts Frozen By Ministry of Justice

On February 18, 2020, the Ukrainian Ministry of Justice opened enforcement proceedings against the National Public Broadcasting Company of Ukraine (UA:PBC), which has resulted in the immediate freezing of all UA:PBC acocunts. The Ministry has taken this step in order to recover approximately 10 million euros, owed to European television channel Euronews.

The sum comes as the result of actions taken by the previous Ukrainian public broadcaster, the National Television Company of Ukraine, which had partnered with Euronews in 2010 to create a joint Euronews Ukrainian division. The National Television Company later ceased to provide contract-stipulated funding to Euronews, which led to the enforcement decision.

UA:PBC inherited this debt from the National Television Company following its formation in 2017, when the National Television Company was merged with the National Radio Company to create UA:PBC.

UA:PBC representatives pointed out that the frozen accounts have interrupted preparations for live broadcasts of the 2020 Olympics, has begun blocking Ukraine’s participation in Eurovision 2020, and has stopped the launch of new projects at the public broadcaster.

“This freeze will soon lead to the full cessation of activity for the television and radio company, as it prevents the ability of the company to conduct necessary spending for the work of the national television broadcasters UA:Pershii, and UA: Kultura, as well as all UA:PBC regional channels, digital platforms, and three radio stations – UA: Ukrainian Radio, UA: Radio Promin and UA: Radio Kultura,” reads a statement on the public broadcaster’s website. UA:PBC added that it has not received any answers to pleas for assistance from various Ukrainian government bodies, including from the Ministry of Finance and the Cabinet of Ministers.

The public broadcaster’s statement also says that the funds in its account will be immediately transferred to Euronews, which will leave the UA:PBC with an approximately $12 million budget shortfall. They note that this will make the broadcaster’s current annual plans impossible to achieve.

“UA:PBC will once again enter a survival mode, as it was in previous years due to colossal under-funding, when the broadcaster could only realize the most basic expenditures, without the proper investment needed to create new content or technical upgrades,” added the broadcaster.

Another 1.6 million euros have been requested by the public broadcaster in order to pay additional enforcement fees.

The public broadcaster’s representatives have additionally stated that the creation of an independent media broadcaster, as set out in a 2014 law, is impossible if it inherits massive debts from previous entities, and that the lack of government assistance in this matter could lead to the complete dissolution of public broadcasting in Ukraine.