As of January 1, localization level in public procurement has increased to 30%

On January 1, 2026, the minimum localization requirement in public procurement increased from 25% to 30%. From now on, the state and communities, as well as state-run and municipal enterprises, will only be able to purchase goods with a Ukrainian component of at least 30% of the cost price. The increase in the localisation level is provided for by the Law of Ukraine "On Public Procurement" and is being implemented in stages: the Ukrainian component is expected to increase to 40% in 2028.

"The process of systematically increasing the level of localisation in public procurement is an important component of the Made in Ukraine policy for the development of Ukrainian manufacturers. The state is creating conditions under which public funds work to develop Ukrainian industry, preserve jobs, and strengthen the country's economic stability. Meanwhile, we're improving the rules so that they're clear and effective for honest manufacturers," said Vitalii Kindrativ, Deputy Minister of Economy, Environment and Agriculture of Ukraine.

The localisation requirement applies to public procurement of 128 types of manufactured goods, including engineering products (rolling stock and equipment for rail transport, urban public transport, municipal and specialised equipment, as well as energy equipment). In addition, the requirement applies to certain light industry goods, electrical products, metal structures and large-diameter pipes.

As a reminder, in order to include goods in the "List of goods with a confirmed degree of localisation of production", their manufacturers must submit, among other things, annual financial and statistical reports prepared after the end of the calendar year.

Therefore, from 1 January to 31 March 2026, the Ministry of Economy, Environment and Agriculture has established a transition period for suppliers whose goods were already included in the List in 2025: during this time, suppliers can use confirmation from the List with a localisation level of 25% to participate in public procurement, but if they win the tender, they are required to confirm compliance with the 2026 requirements — at least 30%.

What has changed in 2025

Expansion of the list of goods with localisation requirements. The Government has expanded the list of products to which the requirement for a minimum share of Ukrainian components in public procurement applies, adding 25 new types of manufactured goods. The rule applies to purchases of UAH 200,000 or more.

Strengthening of localisation confirmation requirements and optimisation of confirmation procedures. The Government has updated and clarified the requirements for confirming the degree of localisation for participation in public procurement through the Prozorro system. To include a product in the list with a confirmed degree of localisation, the manufacturer must submit the following documents:

• tax reports for the previous year;
• certificate of technological operations carried out at the production facility in Ukraine;
• confirmation of the availability of the material and technical base necessary for the production of goods;
• confirmation of the availability of equipment and personnel involved in the production process.

The Ministry of Economy, Environment and Agriculture receives and processes reports from manufacturers regarding violations of the requirements for documents provided to confirm the level of localisation.

The localisation policy is part of the state policy for the development of Ukrainian manufacturers Made in Ukraine, aimed at supporting national production, attracting investment in the real sector of the economy and developing industry.