The government has expanded the list of goods subject to localization requirements in public procurement

The Ukrainian government has approved an additional list of goods subject to localization requirements in public procurement. This is stated in a report by the Ministry of Economy.

The localization requirement will apply to 25 new types of goods in the following categories:

• mechanical engineering (including elevators, tractors, etc.),
• light industry goods, including workwear and military uniforms;
• lighting devices, cables, traffic lights;
• steel structures and large-diameter pipes.

As noted, from now on, when purchasing these goods through public procurement, customers will be required to demand that at least 25% of their cost price be sourced locally in the current year and 30% in 2026. In the future, the requirement will increase by 5% annually until it reaches 40%.

«Ukraine has an extremely high level of import penetration in public procurement. Before the full-scale invasion, it was 38%, while the global average is less than 10%. We must overcome discrimination against Ukrainian producers in Ukrainian public procurement,» emphasized First Deputy Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko.

She noted that about 50 producers had approached the government and the Verkhovna Rada Committee on Economic Development regarding the expansion of localization. Therefore, this decision took their requests into account.

The First Deputy Prime Minister noted that the authorities are open to further expanding the list of goods for localization. She suggested that Ukrainian manufacturers send relevant proposals to the government and the relevant committee.

As noted, this is the first increase in the list since the launch of the localization policy—previously, the requirement applied to the procurement of 103 types of goods, including railway and urban transport, municipal equipment, and energy equipment.

The localization requirement will apply to purchases of UAH 200,000 or more. It does not apply to goods produced in countries that are parties to the WTO Agreement on Government Procurement (GPA), including the EU, the US, Japan, South Korea, the UK, and others.

The resolution will take effect one month after its publication.

The budget declaration for 2026-2028, approved by the government, provides for an acceleration of Ukraine’s GDP growth in 2026 by 4.5% on an annualized basis, in 2027 by 5%, and in 2028 by 5.7%. As for the current year, the country’s economy is expected to continue growing, but at a slower pace — at 2.7% y/y.