The President of Ukraine signed the law on localization – Dmitry Kisilevsky
President of Ukraine Volodymyr Zelensky signed a law on localization requiring the presence of a Ukrainian component in state procurement of engineering products. This was announced by the co-author of the law, Deputy Dmitry Kisilevsky.
This is reported by the railway magazine Railway Supply with reference to the Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmitry Kisilevsky.
In the first year of the law, when purchasing engineering products, at least 10% of the Ukrainian component will be required, in each subsequent year this figure will increase by 5% until it reaches 40%.
“The creation of 64,000 jobs and GDP growth of 4.2% in the medium term is an extremely important effect that is expected after the localization law comes into force. But even more important is the reset of the state industrial policy. The support of the law in the Rada by the constitutional majority and the quick signing of the law by the president demonstrates that our industry still has a chance for adequate support from the state,” said Dmitry Kisilevsky.
The deputy also said that the Cabinet of Ministers now has to develop a regulatory framework for applying the localization requirement in public procurement. He suggested that it would take several months.
Earlier it became known that the requirements for localization in public procurement will not apply to companies from countries that have ratified the WTO agreement on public procurement GPA (Agreement on Government Procurement), in particular the US and the EU. At the same time, according to deputy Dmitry Kisilevsky, the law will still apply to 80% of state purchases of engineering products.
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