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

Advocacy
14:32 Tue 11.06.24 384 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

UNBA initiatives to implement the Roadmap were supported by international experts

Legislation

UNBA initiatives to implement the Roadmap were supported by international experts

International experts who participated in the inaugural meeting of the Working Group on the implementation of the Roadmap on the rule of law in advocacy and agreed to join it expressed their support for the initiative of the Ukrainian National Bar Association.

14:34 Wed 07.01.26 202
How will the group responsible for implementing the Roadmap for advocacy operate?

Legislation

How will the group responsible for implementing the Roadmap for advocacy operate?

The working group on the implementation of the Roadmap on the rule of law in the area of advocacy will operate at several levels: plenary meetings as a platform for adopting framework decisions, a coordination bureau for compiling documents and calendar control, and thematic subgroups for preparing norms and their justification. International experts will verify the results against European standards and «red lines».

15:35 Tue 06.01.26 183
Advocacy is a responsible entity, not a critic of reform — V. Gvozdiy

Legislation

Advocacy is a responsible entity, not a critic of reform — V. Gvozdiy

The Roadmap on the Rule of Law is not a basis for restructuring the model of advocacy, but a framework for verifying and improving the already European-oriented system. At the same time, part of the work has already been done, so further progress should be made in the form of coordinated and practical decisions.

19:31 Fri 02.01.26 161
Vatras on the implementation of the Roadmap: only advocates should create their own destiny

Legislation

Vatras on the implementation of the Roadmap: only advocates should create their own destiny

Work on implementing the Roadmap in relation to advocacy should be based on the participation of the professional community itself, and key tasks should be structured in such a way as to avoid mixing processes that differ in content and procedure.

19:13 Fri 02.01.26 149
Lidiya Izovitova outlined the approach to implementing the Roadmap for advocacy

Legislation

Lidiya Izovitova outlined the approach to implementing the Roadmap for advocacy

The general approach to working on the implementation of the Roadmap on the Rule of Law in terms of reforming advocacy should not be based on «slogans», but rather on gathering facts, comparing them with standards, consulting with the professional community, and formulating norms for which participants are prepared to take responsibility.

18:41 Fri 02.01.26 136
Roadmap and advocacy: working group holds first meeting

Legislation

Roadmap and advocacy: working group holds first meeting

On January 2, the first organizational meeting of the Working Group on the implementation of the Roadmap on the rule of law in the area of advocacy reform took place. The event was devoted to agreeing on the framework for further work and exchanging the initial positions of the participants.

18:24 Fri 02.01.26 148
BCU: NACP initiatives regarding the Bar are unconstitutional interference

Self-government

BCU: NACP initiatives regarding the Bar are unconstitutional interference

The Bar Council of Ukraine has condemned the initiatives to reform the Bar proposed by the National Agency on Corruption Prevention as direct, gross and systematic interference by the executive branch in the activities of an independent constitutional institution.

14:21 Wed 31.12.25 238
UNBA program for implementation of the Roadmap on the rule of law published

Self-government

UNBA program for implementation of the Roadmap on the rule of law published

In order to ensure the implementation of measures set out in the Roadmap on the Rule of Law, the Bar Council of Ukraine approved a program for its implementation in relation to the reform of advocacy.

14:56 Tue 23.12.25 192

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

Оберіть файл