Made in Ukraine: Ministry of Economy approves UAH 150 million in compensation for 25% of the cost of Ukrainian agricultural machinery based on June applications from farmers

The Ministry of Economy, Environment and Agriculture has approved a new allocation of funds under the programme to compensate 25% of the cost of Ukrainian agricultural machinery and equipment. In June, 412 agricultural producers submitted applications for compensation covering 888 units of agricultural machinery and equipment, with a total value exceeding UAH 719 million. The state provided compensation amounting to UAH 149.98 million.

“June was one of the most active months for the programme: over 400 agricultural enterprises applied for compensation for 888 units of machinery. This means more orders for machine-building factories, leading to new jobs and, at the same time, more modern equipment for farmers. The additional UAH 700 million allocated by the Government in July will enable funding for another 3,000 applications. Both agricultural producers growing crops and agro-processing enterprises can apply,” said Oleksii Sobolev, Minister of Economy, Environment and Agriculture.

Compensation for the reporting month was provided for products from over 120 Ukrainian machine-building enterprises included in the official Ministry of Economy List. These include large factories as well as medium and small manufacturers from across Ukraine. The equipment includes tractors, various trailer models, transportation equipment, soil cultivation machinery, sprinkler and irrigation equipment, and other modern Ukrainian agricultural machinery and equipment.

Over the first seven months of the current programme phase (which began in December), 4,284 units of Ukrainian agricultural machinery and equipment were purchased, with a total value exceeding UAH 3 billion (including VAT). The state paid nearly UAH 642 million in compensation.

As a reminder, the 25% cost compensation (excluding VAT) applies to agricultural machinery and equipment with at least 60% Ukrainian components. Special conditions apply to certain categories, such as combine harvesters, tractors, self-propelled sprayers, and grain trucks. The list of agricultural machinery and equipment with confirmed localisation levels is published on the Ministry of Economy’s website. As of August, the list includes 13,807 items from 157 manufacturers.

In early April, the Government amended the programme’s participation rules: now, only agricultural producers registered in the State Agrarian Register can benefit from the 25% compensation programme for Ukrainian agricultural machinery and equipment.

In 2024, the programme facilitated the purchase of 5,311 units of machinery worth over UAH 4.2 billion, with the state compensating nearly UAH 877 million.

How the programme works:

To benefit from the 25% cost compensation programme, agricultural producers must select machinery or equipment from the official Ministry of Economy list, purchase it, and submit an application through an authorised bank. The programme involves 34 banks.

Manufacturers wishing to include their products in the list can apply via the Ministry of Economy’s official website.

The programme operates under Cabinet of Ministers Resolution No. 130 and is one of the tools for implementing the Made in Ukraine policy, aimed at supporting domestic production, localisation, and the development of industrial potential.