The Council has updated its approach to localization: what is changing for the defense sector
10 November 2025 14:31
The Verkhovna Rada has supported in the first reading the draft law No. 13392, which introduces the priority of Ukrainian goods in public and defense procurement, "Komersant Ukrainian" reports.
The document, prepared by the Federation of Employers of Ukraine in cooperation with MPs, is intended to strengthen the “Made in Ukraine” policy and direct budget funds to support domestic production.
How it will work
The draft law stipulates that government and defense customers will be able to purchase machinery and equipment only if the level of localization meets the established indicators.
- For goods with more than 60% of Ukrainian production, the tender evaluation will include a 25% localization weight.
- The requirement will apply to defense procurement worth more than UAH 1 million.
- Compliance with the rules will be monitored by the State Audit Service.
The calculation of localization will be based on the actual production cost rather than on a formal basis, which should stimulate the development of domestic production chains.
The purpose of the draft law
According to the authors, the goal of the initiative is to keep public money inside the economy, create jobs and increase tax revenues. Expanding localization in the defense sector is seen as a way to strengthen Ukraine’s own industry in wartime and reduce dependence on imports.
After the first reading, the draft law will be amended for the second reading , including clarifying the methodology for calculating localization and the list of goods to be covered by the new rules. If the document is finally adopted, Ukraine will effectively create a “national quota” in public procurement, similar to the practice of the EU or the US.
