• Українською
  • Spending public funds on domestically produced goods should become a new philosophy of public procurement, says Yuliia Svyrydenko
    Ministry of Economy of Ukraine, posted 27 March 2024 18:24

    In order to become an economically self-sufficient state and not depend on the situation on foreign markets and geopolitical changes, the Government has prioritised the support of national producers, the increase of non-resource exports and the attraction of investments in the real sector. The development of these areas is a direct contribution to the country’s defence capability and part of the Made in Ukraine national policy.

    This was emphasised by Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, during the Supplier Day 2024 event, a meeting with domestic producers to discuss the issue of demonopolisation and import substitution of products for the needs of Ukrzaliznytsia.

    “Our security and defence can be financed exclusively with the money we earn domestically. For every hryvnia spent on Ukrainian goods, up to 40% is returned to the budget. That is why, when materials for Ukrzaliznytsia’s needs are purchased from foreign suppliers in times of war, it deprives our army of resources. So our task is to increase import substitution and switch to Ukrainian goods and components wherever possible. The Government, for its part, is strengthening its business support tools,” said Yuliia Svyrydenko.

    Last year, when the banking sector could not provide cheap loans, it was the state that did it. Most loans in the country were issued under the 5-7-9 programme. This year, the Government has increased its funding to UAH 18 billion. The limit for processing companies has been increased to UAH 150 million and the loan term to 10 years, and conditions for the de-occupied territories have been improved to help them recover faster. The priority of the programme will be loans for investment purposes.

    The development of Ukrainian producers and the attraction of investments in the real sector are priorities of the Ministry of Economy. To support manufacturers, the Government has launched a grant programme for the development of the processing industry. Under this programme, entrepreneurs can receive up to UAH 8 million from the state to modernise their production.

    “It is important to increase the level of localisation. While the global average for import penetration in public procurement is 7%, in Ukraine this figure is an incredible 38%. Next year, the level of localisation will be 20% and will cover public transport, railway transport, municipal and specialised machinery, and power engineering. We are thinking about expanding this list,” said Yuliia Svyrydenko.

    To facilitate import substitution, Ukrzaliznytsia, for its part, should plan its need for goods in advance, provide technical specifications for goods to be imported, and develop a mechanism for testing and certification of Ukrainian goods that can replace imported ones. The key is to maintain a productive dialogue with producers so that they understand the need and make efforts to meet it.