New bill on localizing production capacities contradicts Ukraine's international obligations – PM

The draft must be substantially revised ahead of its second reading, the head of government says.

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A number of provisions laid down in the bill on the localization of production capacities in Ukraine, which recently passed Parliament at first reading, contradict international agreements signed and ratified by  Ukraine, says Prime Minister Denys Shmyhal.

Therefore, they require revision, Shmyhal stressed during his working visit to the Koriukivka Rail Carriage Works.

"There are provisions there that contradict our international agreements. They need to be brought into line, preserving the principle of protecting Ukraine's national producers," he said.

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As UNIAN reported earlier, on July 21, the Verkhovna Rada adopted at first reading a draft law aimed at localizing production capacities in Ukraine by altering operations of the Prozorro public procurement electronic system.

As stated in the explanatory note to the bill, it proposes, from January 1, 2021, over a period of 10 years, to set up new features of procurement procedures for certain goods by amending the Law of Ukraine "On Public Procurement" to improve the procedure for evaluating bids.

In particular, a list of goods shall be established for which the use of localization requirements becomes mandatory in public procurement.

The localization level could range from 25% to 40%.

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