In order to become an economically self-sufficient state and not depend on the situation in foreign markets and geopolitical changes, the Government prioritized support for the national producer, increasing non-raw materials exports and attracting investments in the real sector. The development of these areas is a direct contribution to the country’s defense capability and part of the Made in Ukraine national policy.

This was emphasized by First Deputy Prime Minister - Minister of Economy of Ukraine Yuliia Svyrydenko during the Supplier Day 2024 event, dedicated to meeting with domestic manufacturers and discussing the issue of demonopolization and import substitution of products for the needs of JSC Ukrzaliznytsia.

“We can finance our security and defense exclusively with the funds we earn inside the country. Up to 40% of every hryvnia spent on Ukrainian goods is returned to the budget. That is why, when during the war, materials for the needs of Ukrzaliznytsia are purchased from foreign suppliers, it deprives our army of resources. Therefore, our task is to strengthen import substitution, wherever possible, to switch to Ukrainian goods and components. The state, for its part, is strengthening business support tools,” Yuliia Svyrydenko noted.

Last year, when the banking sector could not provide cheap loans, the state did it. Most of the loans in the country were issued under the 5-7-9 programme. This year, the Government increased its funding to UAH 18 billion. The limit for processing industry enterprises has been increased to UAH 150 million and the credit term has been increased to 10 years, and the conditions for the de-occupied territories have also been improved so that they can recover faster. The priority of the programme will be loans for investment purposes.

The development of Ukrainian manufacturers and the attraction of investments in the real sector are priorities of the Ministry of Economy. To support manufacturers, the Government launched a programme of grants for the development of the processing industry. Under this programme, an entrepreneur may receive up to UAH 8 million from the state for the modernization of his production.

“It is important to increase the level of localization. If on average in the world the level of penetration of imports into public procurement is 7%, then in Ukraine this indicator is incredible 38%. In the next year, the level of localization will be at the level of 20% and will be spread over city transport, railway transport, communal and special equipment, power engineering. We are thinking about expanding this list,” Yuliia Svyrydenko emphasized.

To promote import substitution, Ukrzaliznytsia, for its part, must plan its need for goods in advance, provide technical specifications for goods that should be subject to import substitution, and develop a mechanism for testing and certifying Ukrainian goods that can replace imported goods. At the same time, the key is to maintain a productive dialogue with manufacturers so that they understand the need and make efforts to meet this need.