Purchase of locomotives and passenger trains for Ukrzaliznytsia from foreign companies is possible only if localized.

The Ministry of Infrastructure will not start any large project without localization - Kubrakov

This was announced on Friday, October 8, by the Minister of Infrastructure Oleksandr Kubrakov in the Verkhovna Rada, answering the questions of the Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmytro Kysilevsky.

Kysylevsky expressed concern about the lack of UZ tender documents for the purchase of trains worth UAH 31 billion in localization requirements, reports railway magazine Railway Supply with reference to biz.censor.net.

“There are no words about localization in the tender. That is, it is assumed that a foreign manufacturer can win. The government will send UAH 31 billion abroad. And the Ukrainian budget will lose UAH 5 billion in taxes,” he stressed.

According to Kubrakov, the localization of production at Ukrainian enterprises is mandatory when purchasing from foreign companies not only in UZ tender.

“We do not consider projects without localization at all,” the minister said.

This applies to previously reached agreements on the purchase of 130 locomotives for UZ from the French concern Alstom, the minister said.

“You know, (in this regard) there is a separate intergovernmental agreement between Ukraine and France. There is a percentage of localization, which we control and without which the project will not start,” said the head of the Ministry of Infrastructure.

Earlier, Kysylevsky appealed to foreign companies wishing to sell their equipment in Ukraine, with a call to place their production here, as well as use Ukrainian components to produce their products.

“You want contracts in Ukraine – do localization, buy Ukrainian components, build factories,” said the deputy head of the Committee on Economic Development, speaking at the conference “Kharkiv: Development and Investment.”

On October 1, Ukrzaliznytsia announced a tender for the purchase of 80 new railcars for suburban trains for UAH 31 billion by 2026. In the tender conditions published on Prozzoro, there are no localization requirements.

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