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

Advocacy
14:32 Tue 11.06.24 259 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

A new competition for FLA advocates has begun

Legal Aid

A new competition for FLA advocates has begun

A competition has been announced to select advocates who will be involved in providing free secondary legal aid. It will last until December 8, 2025, throughout Ukraine, except for Donetsk, Luhansk regions, and the Autonomous Republic of Crimea.

14:07 Tue 07.10.25 119
The CCBE called for the urgent ratification of the Convention on the protection of the profession of advocate

Guarantees of the practice of law

The CCBE called for the urgent ratification of the Convention on the protection of the profession of advocate

The Council of Bars and Law Societies of Europe (CCBE) has called on all states to sign and ratify the Council of Europe Convention on the protection of the profession of advocate as soon as possible, as the integrity of justice and trust in the rule of law depend on it.

11:38 Mon 06.10.25 120
Ukrainians are invited to participate in an international competition for young advocates

Announcements

Ukrainians are invited to participate in an international competition for young advocates

Applications are now being accepted for the 2026 Young European Advocates Contest, organized by the Academy of European Law (ERA) and the Council of Bars and Law Societies of Europe (CCBE).

13:07 Fri 19.09.25 125
Attempts to discredit advocates go beyond freedom of speech — IBA and UNBA meeting

Discussion

Attempts to discredit advocates go beyond freedom of speech — IBA and UNBA meeting

On September 17, as part of his working visit to Ukraine, Mark Ellis, Executive director of the International Bar Association (IBA), visited the Ukrainian National Bar Association, where a working meeting was held on ensuring guarantees for the practice of law in Ukraine.

16:18 Thu 18.09.25 248
Data from registers on powers of attorney and wills compromised – NCU

Other

Data from registers on powers of attorney and wills compromised – NCU

During testing of the e-notary system, it was established that the test (training) version contained all data on powers of attorney, wills, and documents registered in the Unified Register of Powers of Attorney and the Inheritance Register copied up to a certain date.

14:23 Thu 18.09.25 220
IBA’s BIC supports UNBA: advocates should not be identified with their clients

Guarantees of the practice of law

IBA’s BIC supports UNBA: advocates should not be identified with their clients

The International Bar Association's Bar Issues Commission (IBA’s BIC) has sent a letter to the President of the Ukrainian National Bar Association expressing concern over the UNBA's reporting of attacks on the independence of the legal profession and the safety of lawyers in Ukraine.

16:38 Wed 17.09.25 395
Sincerity, respect, and trust: what is important when communicating with military personnel and veterans

Legal defence of military personnel

Sincerity, respect, and trust: what is important when communicating with military personnel and veterans

War changes people not only through their experiences on the front lines or losses, but above all through their perceptions of security, justice, and the limits of their own endurance. Therefore, communication with military personnel and veterans goes beyond psychological issues and becomes a matter of public culture, human rights practice, and even professional ethics for advocates.

16:47 Tue 16.09.25 125
UNBA declares discriminatory changes to the procedure for selecting advocates for FLA

Legal Aid

UNBA declares discriminatory changes to the procedure for selecting advocates for FLA

The government Committee chaired by Vice-Prime-Minister for European and Euro-Atlantic integration Taras Kachka rejected the advocacy's comments; the UNBA emphasizes the violation of European standards and is preparing a judicial appeal if the resolution is adopted.

11:31 Tue 16.09.25 181

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

Оберіть файл