For Ukraine to become economically self-sufficient, the key priority should be the development of domestic production and the transition from raw materials to processing. The goal is to increase the share of the manufacturing industry in GDP from 8% to 20%. To this end, the Government will direct investments in the real sector of the economy, in particular, it is planned to attract $90 billion of investments in manufacturing enterprises over the next 10 years. This was stated by Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine, during a meeting with business representatives on December 20.
“It is now very crucial to rethink domestic consumption – to give preference to Ukrainian producers, this is a priority for our economy. The Government offers a number of tools to support Ukrainian producers and entrepreneurs. This includes UAH 18 billion in 2024 under the 5-7-9 loan programme, UAH 5.4 billion planned for processing grants, the return of the compensation programme for the purchase of agricultural machinery, a programme to stimulate demand for Ukrainian buses and many others. All these tools are elements of our general philosophy – moving away from a raw material state to deeper processing,” Yuliia Svyrydenko stressed.
The First Deputy Prime Minister of Ukraine also noted the priority of Ukrainian producers in public procurement of machinery. In 2024, the localisation requirement will be 20% and will apply to urban transport, railway transport, municipal and social equipment and power engineering.
“We cooperate with major players to ensure that they buy Ukrainian products. Ordering Ukrainian goods launches dozens of our other enterprises, provides jobs for the population and fills the budget – when purchasing Ukrainian goods, up to 40% of their value is returned to the budget in the form of taxes,” added Yuliia Svyrydenko.
According to the First Deputy Prime Minister of Ukraine, the private sector will be the basis of the recovery, so the Government is focused on supporting investments. Thus, next year the Government will allocate UAH 3 billion for state support of projects with significant investments. The Ministry of Economy expects applications from investors who focus on production facilities for high value-added products.
The Plan also envisages an investment mechanism under the Ukraine Facility aimed at providing guarantees to international financial organisations and development finance institutions to boost investment in Ukraine. Over the next year, this mechanism is expected to help attract an additional $8-10 billion to the private, public and municipal sectors. (Government portal/Business World Magazine)
