The new law introduces ten-year benefits for public procurement from 200 thousand hryvnias, provided that in 2022 the localization level will be 10% and will increase by 5% annually to 40%, after which it will remain unchanged until the end of the specified period.
When preparing for the second reading, the threshold values of localization were adjusted downward: the initial version provided for 25-40% at the start with a subsequent increase of another 15 percentage points starting from 2024.
The calculation of the degree of localization remains with the manufacturer, and the confirmation is transferred to the authorized body according to the methodology approved by the Cabinet of Ministers.
In addition, the authorities retain the ability to revise the localization indicator for the next year — lower it by 5% or raise it by 10%, as well as temporarily reduce requirements for a specific tender.
The law covers diesel generators, turbogenerator units, transformers, capacitors, pumps, ambulances, buses of various modifications, trams and trolleybuses, trucks and specialized vehicles, electric buses, bodies, trailers, locomotives, railway cars, helicopters, airplanes, spacecraft, steam turbines and mining equipment.
An exception is made for companies from states participating in the GPA agreement, including the EU and the USA.
