Localization, grants and development of the defense industry sector: how the government stimulates the development of national production.

The government continues the policy of supporting the national producer

The government of Ukraine has decided to continue the policy of supporting the national producer and developing the processing industry until 2025. The main directions of this policy include stimulating the production of Ukrainian products, attracting investments in the real sector of the economy, and increasing the export of finished goods.

At the event 'Made in Ukraine: Opportunities and Priorities in 2025', the First Deputy Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko emphasized that the main goal of the policy is to transform the economy from a raw material-oriented one to a high-tech one and to increase the production of goods with high added value.

According to her, one of the important tools for increasing demand for Ukrainian goods is localization. During public procurement of machinery products, the customer must require at least 25% local content in the product.

In 2020, the localization level was 20%, but it has now increased to 25%. The government is also working on expanding the list of products subject to localization in public procurement, as well as applying localization in defense procurement.

Regarding the grant program, the government plans to expand the recycling capabilities for the production of weapon components. Grant funds will be available for purchasing technological equipment.

Last year, a grant program was already launched for drone manufacturers, but the government is now working on a new stage of this program - a grant for manufacturers of weapon components. The goal is the development of the defense industry sector and related industries.

In 2020, over UAH 34 billion was allocated for the implementation of 14 support programs for manufacturers. This year, the priorities of 'Made in Ukraine' remain unchanged - the development of production, attracting investments in the real sector, and increasing the export of finished products.