Govt expands list of goods with local content requirements in public procurement by 25 items
The government has expanded the list of processing industry goods that will be subject to the requirement for a minimum degree of local content during public procurement by another 25 items, in particular to elevators, tractors, workwear and military uniforms, the Ministry of Economy reports.
"The decision was made on the basis of the provisions of the law on public procurement and appeals from Ukrainian manufacturers," the message on the ministry's website says. The resolution comes into force a month after its publication.
The local content requirement, in addition to mechanical engineering and light industry goods, will apply to lighting devices, cables, traffic lights; metal structures and large-diameter pipes.
The Ministry of Economy recalls that in 2025, the presence of a local component in public procurement should be at least 25%, in 2026 - 30%, and will continue to grow by 5% each year until it reaches 40%.
This is the first expansion of the list since the launch of the local content policy. Previously, the requirement applied to the procurement of 103 types of goods, including railway and urban transport, municipal equipment and energy equipment. The local content requirement will apply to purchases from UAH 200,000.
"Ukraine has an extremely high level of import penetration in public procurement. Before the full-scale invasion, it was 38%, while the average in the world is less than 10%. We must overcome discrimination against Ukrainian manufacturers in Ukrainian public procurement," the message quotes First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.
On her Facebook page, she added that about 50 manufacturers had applied to the ministry and the relevant parliamentary committee to expand localization.