Requirements obliging customers to apply localisation when purchasing certain goods were introduced in the Law of Ukraine ‘On Public Procurement’ back in 2022. The list of goods for which localisation requirements must be established during procurement came into effect at the same time. For a long time, this list, defined in Section X of the Law, concerned mechanical engineering products such as transformers, capacitors, buses, trolleybuses, trucks, etc. However, since 4 August 2025, localisation in public procurement has also extended to products of the processing industry.
The Resolution of the Cabinet of Ministers of Ukraine No. 782 dated 2 July 2025 approved an additional list of goods subject to requirements regarding the extent of localisation of production.
This list includes, among other things, the following goods:
- Bed linen;
- Various footwear, except sports and protective footwear;
- Headwear;
- Cabling;
- Lighting equipment;
- Blankets;
- Summer clothing;
- Gloves (except tactical gloves);
- Backpacks;
- T-shirts and shirts.
The extent of localisation of production of the above goods must be in line with the provisions of Clause 6-1(1) of Section X of the Final and Transitional Provisions of the Law of Ukraine “On Public Procurement”, i.e. 25% in 2025; 30% in 2026; 35% in 2027; and 40 percent from 2028 until the end of the 10-year term of this Clause.
Therefore, when conducting public procurement of goods specified in both of the above lists, authorised representatives of customers must meet localisation requirements if the purchase price of such goods is at least UAH 200,000. Furthermore, in case of procurement of works or services, if the performance of the works or provision of services involves the procuring entity acquiring ownership of goods included in the lists, the value of which as part of the procurement item is at least UAH 200,000, the requirements for verifying the localisation of the goods are also mandatory.
Below are the localisation features that procuring entities should consider when conducting public procurement.
First: the extent of localisation of production in 2025 must be at least 25%.
Second: a product that falls under the localisation requirements must be listed on the Prozorro website at https://prozorro.gov.ua/uk/search/products?yearCreated=2025
Third: localisation requirements do not apply to procurements that fall under the Law of Ukraine “On Accession of Ukraine to the Agreement on Government Procurement”, as well as the provisions on government procurement stipulated in other international treaties of Ukraine ratified by the Verkhovna Rada of Ukraine.
Fourth: Bidding documentation for the procurement of goods included in the lists must stipulate that the bidder must provide a certificate of conformity of the quality management system in production with DSTU ISO 9001:2015 or DSTU EN ISO 9001:2018 (EN ISO 9001:2015, IDT; ISO 9001:2015, IDT) for the manufacturer whose products are offered by the bidder, or any replacement national standards issued by a conformity assessment body accredited in accordance with the law.
Fifth: if the localised goods are wheeled vehicles, the customer shall specify in the bidding documentation a requirement for the bidder to provide additional certificates for the equipment specified in Clause 13-1 of the Procedure for Confirming the Extent of Localisation of Goods Production, approved by Resolution of the Cabinet of Ministers of Ukraine No. 861 dated 2 August 2022.
Sixth: a bidder that has entered into a contract for the supply of a procurement item included in the lists must, simultaneously with the delivery of the goods, provide the procuring entity with the actual cost calculation for the goods prepared by the manufacturer, which the procuring entity must publish in Prozorro together with the report on the completion of the procurement contract.
