The draft law aims to enhance localization requirements for goods purchased with public funds
On June 20, 2025, the Verkhovna Rada of Ukraine registered Draft Law No. 13392, which proposes amendments to the Law of Ukraine “On Public Procurement” and several other legal acts to increase the share of localized goods in public and defense procurement.
The initiative was developed following an analysis of the practical implementation of current legislation, which revealed significant violations and inefficiencies. Nearly 40% of procurements subject to localization rules between August 2023 and April 2024 were found to be non-compliant. Key issues include poor administration of the list of localized goods, weak oversight by contracting authorities, and the ability to falsify declared localization levels.
Key provisions of the draft law:
- Mandatory localization requirement for goods worth over UAH 1 million, valid until December 31, 2032, with a phased increase in localization percentage.
- Only manufacturers may include products in the official list of localized goods, with verified localization levels.
- The authorized body will have expanded powers, including creating a commission to maintain and verify the list of localized products.
- Tender proposals that do not meet localization requirements must be rejected; a fine of at least 25% of the contract value will apply for non-compliant deliveries.
- Bid evaluation formula will include localization as a weighted criterion, depending on the degree of domestic production.
Economic relevance
The draft law aims to stimulate Ukrainian manufacturing, reduce dependence on imports, and support national industrial development. Public procurement is expected to become a strategic tool for economic growth and modernization.
Authorship
The draft law was prepared by members of the Verkhovna Rada Committee on Economic Development. Co-authors include MPs Dmytro Natalukha, Roksolana Pidlasa, Andriy Motovilovets, Arsenii Pushkarenko, Dmytro Kysylevskyi, and others.