The Ministry of Economy prioritizes support for national producers

Domestic production will improve Ukraine's self-sufficiency in goods and reduce dependence on foreign markets

The Ministry of Economy of Ukraine prioritizes the development of Ukrainian producers and attracting investment in the real sector. This was stated by First Vice Prime Minister and Minister of Economy Yulia Svyrydenko during the Supplier Day 2024 event, according to a press release from the Ministry.

To improve the state’s self-sufficiency in goods, reduce dependence on foreign markets and geopolitical changes, the government intends to improve support for national producers, increase non-resource imports, and attract investment. The development of these areas is a direct contribution to the country’s defense capability and part of the national policy «Made in Ukraine».

«We can finance our security and defense exclusively with the money we earn domestically. Out of every hryvnia spent on Ukrainian goods, up to 40% is returned to the budget. That is why, when materials are purchased from foreign suppliers for the needs of Ukrainian Railways in times of war, it deprives our army of resources. So our task is to increase import substitution and switch to Ukrainian goods and components wherever possible. The government, for its part, is strengthening its business support tools,» she said.

This year, the government has increased funding for the 5-7-9 state lending program to UAH 18 billion. The limit for processing companies has been increased to UAH 150 million and the loan term to 10 years. Conditions for the de-occupied territories have also been improved to help them recover faster. The program will prioritize loans for investment purposes.

To support producers, the government has also launched a program of grants for the development of the processing industry. Under this program, entrepreneurs can receive up to UAH 8 million from the state to modernize their production.

«It is important to increase the level of localization. While the global average for import penetration in public procurement is 7%, in Ukraine this figure is an incredible 38%. Next year, the level of localization will be 20% and will cover public transport, railway transport, municipal and special equipment, and power engineering. We are thinking of expanding this list,» summarized Yulia Svyrydenko.

As GMK Center reported earlier, the implementation of the «Made in Ukraine» policy will ensure at least 1% additional GDP growth in 2024. This year, the state budget allocates UAH 45 billion for support programs.

Last year, the Ukrainian steel industry refocused on meeting the needs of the domestic market. In 2023, only half of the steel products produced were exported, which is significantly less than its pre-war share (about 80%). Last year, the industry also became even more integrated into the EU, as more than 80% of steel exports went to the EU (in 2022, the same figure was 60%).

Despite the war, the Ukrainian steel industry has survived and continues to operate, and there is reason to believe that in 2024 the industry will retain its role and will be the basis for the recovery of Ukraine’s infrastructure and economy.