Ukraine has expanded its localization program in public procurement for the first time

The Cabinet of Ministers has expanded the list of manufactured goods subject to the minimum localization requirement during public procurement. This was announced by the Ministry of Economy.

The decision was made based on the provisions of the Law "On Public Procurement" and appeals from Ukrainian manufacturers.

"Today, the government expanded localization in public procurement by another 25 product items – now there are 128. This is the first such decision since the launch of the "Made in Ukraine" policy, and it has long been overdue," commented Minister of Economy Yulia Svyrydenko.

The resolution shall enter into force one month after the date of its publication.

Localization will be expanded to 25 new product types in the following categories:

→ mechanical engineering – in particular, elevators, tractors, etc.;→ consumer goods of the light industry, including workwear and military uniforms;→ lighting devices, cables, traffic lights;→ metal structures and large-diameter pipes.

During public procurement of these goods, buyers will be required to demand the presence of a local component in their cost. In 2025 – at least 25%, in 2026 – 30%. Thereafter, the requirement will increase by 5% annually until it reaches 40%.

Previously, the requirement applied to the procurement of 103 types of goods, including railway transport, urban transport, municipal equipment, and power equipment.

The localization requirement will apply to procurements exceeding 200,000 UAH. It does not apply to goods produced in countries participating in the WTO Agreement on Government Procurement (GPA), including EU countries, the USA, Japan, South Korea, the UK, and others.

Earlier, the head of the Verkhovna Rada's Finance Committee, Danylo Hetmantsev, stated that adjustments need to be made to the "Made in Ukraine" program to accelerate economic recovery.