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The Committee of the government of Ukraine approved the project for the promotion of import substitution

Ukraine / Engineering
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the Ukrainian Government is preparing to adopt a decree on preferences in state purchases for localized not less than 35% of the products of engineering industry.

The Committee of the government of Ukraine approved the project for the promotion of import substitution

Government Committee adopted the proposed Federation of employers of Ukraine (FEU) pilot project for procurement of equipment machinery industry with a proven degree of localization of production of not less than 35%.

the Next step will be consideration of the project by the government of Ukraine. The document will be approved the list of equipment and procedures for determining the degree of localization of such equipment, and outlines the conditions of the public procurement system.

"Localization is a concept that is used in all leading countries of the world. The application of the criterion of localization in procurement will be an important step towards supporting those who produce or want to produce in Ukraine. Thus, local production will get priority and access to large financial resources through public procurement, which amounts per year amount to hundreds of billions of hryvnia," – commented the Minister of economic development, trade and agriculture of Ukraine Igor Petrashko.

the Minister explained that if the production of goods of the Ukrainian component is more than 35%, this product claims to additional non-price criteria – localization. In purchasing this product receive the non-price part of the assessment in the amount of 30%.

"This project may become a driver of growth for the Ukrainian industry. We want Ukrainian production were competitive and received large orders, created jobs and were included in the global production chain", – said Petrashko.

Recall that only in the railcar industry and teplovozostroitelny Ukrainian enterprises can provide more than 53% of localization. In this case the additional receipts to the budgets and funds will be more than 200 million Euro savings in unemployment - 76 million euros, will create about 10 000 jobs, the Ukrainian population will receive income in the form of wages to 18.5 million Euro, which, in turn, will stimulate consumer demand in the market. All this will affect the GDP growth of at least 3,740 billion hryvnia annually.

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