Law on localization: impact on competition in Ukraine

On January 12, the President of Ukraine signed the draft law №3739 on Amendments to the Law of Ukraine “On Public Procurement”.

Authorities have already made loud statements about how this law will help the national producer. Another camp is concerned about the deterioration of relations with international partners and the disregard for libertarian values.

Below we will briefly review the mechanism of the law, so that everyone can draw their own conclusions.

Everyone intuitively understands what a location is. However, it can be provided in different ways.

Under the new law, localization is provided by the requirement for customers in public procurement to allow the participation in tenders of goods from foreign manufacturers that provide a certain level of localization.

In other words, part of the value added of foreign goods must be created in Ukraine.

More details in the publication of CRC expert Mykola Boichuk