What allows you to support domestic industry, provide jobs and fill state and local budgets.
Lviv Regional State Administration recently received the first 25 school buses manufactured in Cherkasy region. Procurement was carried out according to a new procedure – the participants had to provide confirmation that their products have at least 10% of the Ukrainian component.
“Localization Law brings the first results. Finally, the mechanism of supporting one's own economy, which is used by all advanced countries of the world, has also worked in Ukraine”,– comments purchase Deputy Chairman of the Parliamentary Committee on Economic Development Dmytro Kysilevskyi.
The contract provides for the supply of 126 buses – this is a significant order for any of the Ukrainian manufacturers, which allows you to save jobs and ensure income to local and state budgets.
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“Finally, we are seeing the first steps of returning common sense to public procurement. Taxpayers' money is working for Ukraine and creating jobs in Ukraine. Right now, during the active phase of the war. (…) This is how it should be – the taxes of Ukrainians are spent on contracts, which provide salaries and pensions to our citizens, not to foreign citizens,” writes Kysilevsky.
According to him, if such a policy for the development of Ukrainian manufacturers had been introduced ten years ago and related to a wider range of goods, Ukraine would now have something to respond to Iranian drones.
According to Prozorro, manufacturers have already registered 645 product items with a level of localization above 10% in the Localized Products Register. This is the minimum threshold set for 2022. This requirement will increase by 5% each year until it reaches 40%.
“I am in no way against the presence of foreign manufacturers of machine-building products in Ukraine. Just the opposite. The requirement for localization is not a restriction, but an invitation for them to enter into a partnership with Ukrainian enterprises or create new ones in our country”, the deputy emphasizes.
And he emphasizes: despite the full-scale war, in many regions of Ukraine local the government creates all the conditions for such a partnership.
Read also: How investors can now cooperate with Ukraine: Zelenskyi named the options
Related video
No one will protect our economic interests except ourselves. And no matter how persuasive the arguments of the opponents of localization are, awareness of its benefits for the Ukrainian economy is inevitable, because the penetration of imports in EU and US public procurement is 5–8%, and in Ukraine it is almost 40%. Read about how close international partners and experts have come to accepting Ukrainian localization in the text by Dmytro Kysilevsky ;”> “Denial, Anger, Bargaining, Depression, Localization“.
