16:14 26.02.2024

Ukraine will expand localization requirement for public procurement - prime minister

2 min read
Ukraine will expand localization requirement for public procurement - prime minister

The government will expand the list of goods and equipment, during public procurement of which preference is given to those where there is a certain level of localization of production in Ukraine, Prime Minister Denys Shmyhal said at the Made in Ukraine forum in Kyiv on Monday.

“We plan to use a number of tools to help domestic producers in the near future. The first tool is public procurement. We will expand the list of categories of goods that should be purchased from local producers,” he said.

According to him, in particular, the matter concerns defense procurement.

“We have estimates that the UAH 300 billion budgeted for the purchase of weapons, if at least 50% is localized, is a very important and large locomotive for economic growth,” First Deputy Prime Minister – Minister of Economy Yulia Svyrydenko added at the forum.

According to her, 40% of the purchase of Ukrainian equipment returns to the budget, which is important at the stage of limited budget resources as a stimulus for Ukrainian production.

“Today, localization is already in effect in accordance with the current legislation. Our task is to expand the list of goods so that municipal equipment, specialized equipment, and mine clearance vehicles must have at least 20% of the Ukrainian component,” she emphasized.

Svyrydenko clarified that the volume of public competitive procurement in 2023 amounted to UAH 1 trillion.

“If you take the percentage of import penetration that was before the war, it was 40%, you can understand what our priorities are for the development of Ukrainian production,” she explained.

AD
AD
AD
AD