The government is developing programs to support national producers

To become economically self-sufficient and independent of the situation on foreign markets and geopolitical changes, the Government has prioritized support for domestic producers, increasing non-resource exports and attracting investment in the real sector. The development of these areas is a direct contribution to the country's defense capability and part of the national policy "Made in Ukraine".

This was emphasized by Yulia Svyrydenko, First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine, during the Supplier Day 2024 event, dedicated to a meeting with domestic producers and a discussion of the issue of demonopolization and import substitution of products for the needs of JSC Ukrzaliznytsia.

"Our security and defense can be financed exclusively with the money we earn domestically. For every hryvnia spent on Ukrainian goods, up to 40% is returned to the budget. That is why, when materials for the needs of Ukrzaliznytsia are purchased from foreign suppliers 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, isstrengthening its business support tools," said Yulia Svyrydenko.

Last year, when the banking sector could not provide cheap loans, the state did it. Most loans in the country were issued under the 5-7-9 program. This year, the Government has increased its funding to UAH 18 billion. The limit for processing companies has been increased to UAH 150 million and the loan term to 10 years, and conditions for the de-occupied territories have been improved to help them recover faster. The program will prioritize loans for investment purposes.

The development of Ukrainian producers and the attraction of investments in the real sector are priorities of the Ministry of Economy. To support manufacturers, the Government has launched a grant program 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 urban transport, railway transport, municipal and special equipment, and power engineering. We are thinking of expanding this list," emphasized Yulia Svyrydenko.

To facilitate import substitution, Ukrzaliznytsia, for its part, should plan its need for goods in advance, provide technical specifications for goods to be imported, and develop a mechanism for testing and certification of Ukrainian goods that can replace imported ones. The key is to maintain a productive dialog with producers so that they understand the need and make efforts to meet it.