Made in Ukraine: Tightening of localization requirements for public procurement

The Government has tightened the requirements for including goods in the list of products with a confirmed degree of localization, used in public procurement through the Prozorro system. The changes were initiated in response to appeals from Ukrainian manufacturers to intensify control over the fulfillment of localization conditions in procurement with public funds.

From now on, manufacturers who want to sell their products to the state will have to provide more documents confirming that at least 25% of the value of their products is of Ukrainian origin in order to participate in tenders.

"This is the second update to the localization mechanism in public procurement after the expansion of the list of goods. We are improving the procedure for including products in this list so that public procurement does not become a tool for supporting pseudo-localized imports. This is about protecting Ukrainian manufacturers from situations where almost finished products are imported into Ukraine, minimally refined here, and marketed as those made in Ukraine," emphasized Andrii Teliupa, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.

New requirements for manufacturers are as follows:

In order for a product to be included in the list with a confirmed degree of localization (25% in 2025), the manufacturer must submit:

• a copy of tax form 4DF for the previous year (with data on income, taxes, military tax, and social security contributions);
• a certificate of technological operations carried out at the production facility;
• a copy of the product sample test report issued by an accredited laboratory;
• confirmation of the availability of material and technical resources, equipment, and personnel.

In addition, the Ministry of Economy, Environment, and Agriculture of Ukraine now has new competences:

• to verify the completeness and accuracy of information provided by manufacturers;
• to analyze the documents on the basis of which goods are included in the list;
• to perform automated verification of applications through the web portal;
• to inform the commission on the electronic procurement system in case of any inconsistencies.

The changes are made to:

• the Procedure for the functioning of the electronic procurement system (CMU Resolution No. 166 of February 24, 2016);
• the Procedure for confirming the degree of localization of goods (CMU Resolution No. 861 of August 2, 2022).

Background information

Localization in public procurement is a requirement for a minimum share of Ukrainian components in the cost of goods purchased in accordance with the Law “On Public Procurement.” In 2025, this share must be at least 25%, and in 2026, 30%. The requirement will continue to increase by 5% each year until it reaches 40%. It ensures that public funds are directed towards supporting national production, creating jobs, and developing industry.

The localization requirement is part of the Made in Ukraine policy for the development of Ukrainian manufacturers, initiated by the President of Ukraine. The policy aims to stimulate the real sector of the economy, industrial development, investment, and non-raw material exports.