First banks have joined the programme of compensation for the purchase of Ukrainian machinery and electrical equipment: Yuliia Svyrydenko

The Ministry of Economy has signed the first memorandums with banks under the programme of partial compensation for the cost of Ukrainian-made machinery and equipment. The first partners are Sky Bank and Bank Vostok. This programme is being implemented as part of the Made in Ukraine policy.

"The first two banks have joined the programme of compensation for the purchase of machinery and equipment made in Ukraine. This means that buyers of Ukrainian machinery and equipment will soon be allowed to apply for compensation through these financial institutions. We expect to sign memoranda with several more banks by the end of the week. I urge banking institutions to become more actively involved in the programme. This programme is an opportunity to jointly support our producers and encourage the purchase of their products," said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

What is the role of authorised banks in the programme?

Authorised banks are responsible for paying compensation for the purchased machinery. This is how it works:

• Banks accept applications from buyers, check documents confirming the purchase;
• Submit the lists of applicants to the Ministry of Economy for verification;
• Open accounts to which the Ministry of Economy transfers funds;
• Transfer compensation to buyers' accounts.

Background information

The first list of domestically produced machinery and equipment to which the state will refund 15% included products from 9 Ukrainian manufacturers. These are buses, trucks, elevators, and various equipment. The list will be expanded further.

The Cabinet of Ministers decided to launch a new compensation programme to support manufacturers on 24 September 2024. Buyers can receive 15% compensation (excluding VAT) for the purchase of power, wheeled, construction and special equipment. The programme is intended to boost domestic demand for Ukrainian-made goods.

To participate in the programme, manufacturers need to:

• Submit an electronic application to the Ministry of Economy.
• Provide information on the degree of localisation, costing and technological operations, and the calculation of the share of labour costs.

After verification by the Ministry of Economy, the goods will be included in a public list, which will be used to provide information to banks for the programme.

To participate in the programme, buyers need to:

• Pay for machinery and equipment through an authorised bank;
• Submit an application for compensation to the bank together with a copy of the payment document and the act of acceptance.

Compensation for goods purchased before 1 December 2024 can be received in the current year, provided that the application is submitted by 5 December. For equipment purchased after 1 December, compensation will be accrued next year. Funding depends on the priority of applications and the availability of the budget.

The programme of partial compensation for the cost of domestically produced machinery and equipment is implemented under the Made in Ukraine programme. The Made in Ukraine state policy, launched by the President of Ukraine, aims to attract investment for the development of Ukrainian producers, increase production of high value-added products and stimulate demand for Ukrainian goods. After all, support for producers means increased production, a stable economy, new jobs, money to the budget and support for the Armed Forces.