“Made in Ukraine. It is increasingly difficult for foreign companies from a number of countries to participate in state procurement of engineering products January 13, 13:24 Share: The minimum level of localization in public procurement has increased to 25% (Photo: capital.ua) Since January, the minimum required level of localization of engineering products to participate in public procurement. Now such products must be at least a quarter of domestic origin. Previously, the level of localization had to be at least 20%. About”, — write on: ua.news
The minimum level of localization in public procurement has increased to 25% (Photo: capital.ua)
Since January, the minimum necessary level of localization of machine-building products for participation in public procurement has increased. Now such products must be at least a quarter of domestic origin.
Previously, the level of localization had to be at least 20%.
This was reported by Dmytro Kysylevsky, Deputy Chairman of the Verkhovna Rada Committee on Economic Development.
“Localization requirements apply to public transport, communal to special equipment, railway transport and energy equipment. When they are purchased by state institutions and companies, as well as communities, at least a quarter of this equipment should be accounted for by the Ukrainian component,” he said.
Kisylevsky noted that the level of penetration of imports into public procurement remains high — about 40%. At the same time, in the European Union, this indicator is about 5%.
“Currently, the public procurement system and the officials responsible for public procurement are unable to provide objective data on how much taxpayers’ funds are spent on Ukrainian goods and how much on imports,” said the deputy. — “Another problem that the government is expected to solve in 2025 is fraudsters in the state localization register. Individual importers systematically lie that they are Ukrainian producers, enter fictitious data in the register and, on this basis, illegally participate in public tenders.”
Also, according to Kisylevsky, consultations are currently at the final stage regarding the extension of the effect of localization to a number of new categories of goods.
Legislation on localization is a component of the development policy of Ukrainian manufacturers Made in Ukraine.
As reported, on January 12, 2022, the President of Ukraine, Volodymyr Zelenskyi, signed the law on localization in mechanical engineering. It entered into force on July 14, 2022.
Legislation on localization in 2023 required at least 15% of the component produced in Ukraine during public procurement of machine-building products. In 2024, this indicator increased to 20%.
At the same time, the localization requirement does not apply to goods originating from countries that are signatories to the GPA agreement (agreement of the World Trade Organization on public procurement), in particular the EU, the USA and a number of others.