The Cabinet of Ministers approved a new procedure for verifying product localisation for participation in public procurement. At the same time, the registry of localised products has resumed accepting applications.
Change to the calculation base for the share of the Ukrainian component
Localisation will now be calculated based on the manufacturing cost of the product, rather than its total price. This excludes the possibility of counting administrative and other expenses that are not directly related to production.
As a result, costs that are not associated with the manufacture of the product cannot be used in the calculation, which should make it harder to inflate the localisation indicator through indirect expenses.
Expanded documents required for entry in the registry
The producer must provide an extended turnover-and-balance statement for the last 12 months, which must reflect the movement of raw materials, materials and components. The statement should list all materials and components appearing in the cost calculation, and separately identify the five components with the largest share, without specifying their value.
In addition, the producer must add original accounting documents that substantiate transactions. These documents will allow verification not only of the declared localisation percentage but also of the actual purchase and use of components during production.
Verification of technological operations on the enterprise
The new requirement envisages confirmation that at least four technological operations from an approved list were carried out directly in the enterprise’s production. In addition, the producer must report the five main components from which the product is made.
Having only a Ukrainian legal address or documents for the product will no longer be sufficient grounds for confirming localisation: it is necessary to demonstrate real production processes and movement of materials.
Relaunch of the registry and minimum localisation norms
The registry of localised products has resumed accepting applications under the new rules. For products already on the list, a 30-day transition period has been set during which producers must re-submit documents and confirm compliance with the updated requirements.
A permanent commission will be created to consider complaints about breaches of localisation requirements, which will include representatives of the ministry, the state enterprise Prozorro and civic associations. There are currently over 4,000 products on the list.
The localisation requirement applies to categories of goods specified by law in public procurement: the minimum share of the Ukrainian component in 2026 is 30%, from 1 January 2027 — 35%, and from 2028 should reach 40%.
