Localization of public procurement: does the law work (research results)

Advocacy
14:32 Tue 11.06.24 503 Reviews
Print

Improving the mechanism of maintaining the register of localized goods producers will not only reduce the level of fraudulent schemes in the register, but also increase investors' interest in the development of Ukrainian business.

This was stated by Andriy Shabelnikov, Chairman of the UNBA Committee on Investment Activity and Privatization, commenting on the results of the hearings in the Verkhovna Rada Committee on Economic Policy on «Post-legislative control in the field of compliance with the requirements for the local component (localization) in public procurement».

During the event, MPs, representatives of the Ministry of Economy, the State Audit Service, the Antimonopoly Committee, specialized associations and manufacturers analyzed the effectiveness of the implementation of the Law of 16.12.2021 No. 1977-IX «On Amendments to the Law of Ukraine «On Public Procurement» on Creating Preconditions for Sustainable Development and Modernization of the Domestic Industry».

Earlier, the parliamentary committee interviewed business entities involved in the procurement of localized goods, as well as regulatory authorities. The respondents shared their thoughts on whether the law has worked in practice, what are the achievements and problems in its implementation, and how to resolve the difficulties that have arisen.

As a reminder, the law introduced the degree of localization of production - an indicator of the local component in the share of the cost of raw materials, components, assemblies, parts, components and components of products, works, services and other components of domestic production in the cost of the goods that are the subject of procurement.

By 2032, the law established specifics for the procurement of goods that require the customer to comply with the degree of localization of production, which must be equal to or greater than 10% in 2022 and 40% after 2028. The degree of localization of production must be determined by the manufacturer of the goods in accordance with the formula established by law.

During the event, the participants were presented with the generalized results of the survey by the main groups: suppliers of goods, customers of goods, state control and supervision authorities.

In particular, 61.9% of suppliers of goods noted that the introduction of localization had not affected their business at all. This is due to several factors: products not falling under the law, a low localization threshold at the initial stages, and the lack of necessary regulations and explanations from government agencies.

To increase the level of localization, some companies plan to develop their own production of components and equipment (33.3%), while others intend to cooperate with Ukrainian manufacturers (23.8%). However, there are also those who do not intend to take any measures (14.3%). At the same time, more than half of the respondents expressed confidence that by 2028 the level of localization of their products will be at least 40%, while almost a quarter still doubts that they will be able to reach this figure. The full results of the survey can be found here.

The participants of the committee hearings were also presented with the results of monitoring procurement with localization through the Prozoro system, told about the improvement of the mechanism for maintaining the register of localized goods producers, the fight against fraud in the register, measures to monitor compliance with the law, and discussed proposals for possible changes to the legislation on localization.

Popular news

The UNBA presented the CCBE with an overview of legal reform and challenges

European integration

The UNBA presented the CCBE with an overview of legal reform and challenges

Reform of the legal profession, Ukraine’s European integration commitments, guarantees of the profession’s independence, and practices of bar self-governance in European countries — these issues were the subject of discussion at the Council of Bars and Law Societies of Europe (CCBE).

14:39 Mon 01.06.26 104
New rules, old problems: the UNBA discussed the work of the ETAIDF and MMC

Discussion

New rules, old problems: the UNBA discussed the work of the ETAIDF and MMC

The reform of medical-social assessment and military medical commissions has changed procedures but has not resolved practical issues. People face situations where documents are not issued, decisions are based on technicalities, assessments are delayed, and they struggle to demonstrate their actual health status in specific life situations.

16:18 Wed 27.05.26 100
Penalties for errors in military registration require clear rules, – UNBA

Legislation

Penalties for errors in military registration require clear rules, – UNBA

The liability of officials for violations of military registration rules must be legally defined, proportionate, and effectively enforceable. Otherwise, the new fines will not protect citizens from registration errors but will create additional risks.

18:14 Mon 18.05.26 135
Lidiya Izovitova: In the context of European integration reforms, advocacy is a partner of the state, not a target of reform

European integration

Lidiya Izovitova: In the context of European integration reforms, advocacy is a partner of the state, not a target of reform

The war has significantly altered the working conditions for advocates, while European integration has presented the profession with new institutional challenges. The ongoing negotiation process covers issues such as the rule of law, judicial independence, fundamental rights, justice, freedom and security.

15:13 Fri 15.05.26 163
The Verkhovna Rada discussed the next steps for ratifying the Convention on the Protection of the Professions of Lawyer

Guarantees of the practice of law

The Verkhovna Rada discussed the next steps for ratifying the Convention on the Protection of the Professions of Lawyer

The Verkhovna Rada Committee on legal policy held a working meeting to prepare for the ratification of the Convention for the Protection of the Profession of Lawyer. The meeting was attended by members of parliament, representatives of the Office of the President, the Ministry of Justice, the Ministry of Foreign Affairs and the Ukrainian National Bar Association.

13:12 Thu 14.05.26 174
Valentin Gvozdiy: Ukraine’s ratification of the Convention for the Protection of the Profession of Lawyer – is a matter with concrete implications

Guarantees of the practice of law

Valentin Gvozdiy: Ukraine’s ratification of the Convention for the Protection of the Profession of Lawyer – is a matter…

Exactly one year ago, on May 13, 2025, in Luxembourg, during the 134th session of the Committee of Ministers of the Council of Europe, the Convention for the Protection of the Profession of Lawyer was opened for signature. Today, the Verkhovna Rada Committee on legal policy held a working meeting to prepare for its ratification. Between these two dates lies a year, during which (on March 9) Ukraine became the 28th signatory state. We spoke about this new phase with the Vice President of the UNBA, BCU Valentin Gvozdiy, who was personally involved in the preparation of this international instrument.

19:23 Wed 13.05.26 224
Mental health, archives and cybersecurity: The UNBA and the IBA reviewed the progress of joint projects

Support

Mental health, archives and cybersecurity: The UNBA and the IBA reviewed the progress of joint projects

The Ukrainian National Bar Association and the International Bar Association (IBA) reviewed the progress of joint projects that are of practical importance in the context of the war: supporting the mental health of advocates, digitizing archives, and strengthening the cybersecurity of the legal infrastructure.

18:27 Fri 08.05.26 227
Ukrainian lawyers to be trained in EU law: the Train4EU project launches

Announcements

Ukrainian lawyers to be trained in EU law: the Train4EU project launches

Ukraine is launching the international educational project Train4EU, aimed at preparing the legal community for the process of European integration. The initiative is being implemented with the support of the Swedish Institute. Örebro University (Sweden) serves as the key academic partner.

10:29 Sat 02.05.26 104

Надішліть файл із текстом публікації у форматі *.doc, фотографію за тематикою у розмірі 640х400 та Ваше фото.

Оберіть файл