The programme of partial state compensation for the cost of Ukraine-made agricultural machinery and equipment, renewed by the Government, has been officially launched. The relevant order on the formation and approval of the List of domestic machinery and equipment for the agricultural sector, the cost of which is partially compensated by the budget, was signed by the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine Yuliia Svyrydenko while presenting the economic platform Made in Ukraine and meeting with entrepreneurs of Chernihiv region chaired by President of Ukraine Volodymyr Zelenskyy.
As the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine emphasised, the signing officially launched a compensation programme for Ukrainian-made agricultural machinery. By purchasing machinery from the manufacturers on the List, farmers will be eligible to receive 25% of the cost of this machinery back.
“The compensation programme for farmers has proven to be extremely effective in previous years. The share of Ukrainian products in the domestic market doubled in 2017-2021 due to the created demand and price advantage. Production increased from 5,000 to 12,000 units, half of which were exported. The programme helped to attract investment in the industry, create jobs and generate additional revenues for budgets at all levels.
Currently, compensation to farmers is part of the Made in Ukraine economic programme. And I am convinced that it will become one of its pillars. The state budget for 2024 envisages a billion hryvnias for the programme. According to estimates, this will be sufficient to satisfy the requests for domestic machinery from about 4,000 agricultural producers. Most importantly, we are giving a new impetus to the development of machine-building enterprises. The support is expected to double the supply of domestic machinery and equipment on the market, launch the production of new items, and increase investors’ interest in the industry,” said Yuliia Svyrydenko.
The programme will help farmers who buy from the listed producers save 25% on their purchases this year. Imports of agricultural machinery and equipment may be reduced by up to 10%. In addition, the programme will help create about a thousand new jobs.
As of 8 April 2024, the updated list includes 964 nomenclature items of products from 21 Ukrainian manufacturers of agricultural machinery and equipment. The list will be updated following the receipt and consideration of new applications from machinery and equipment manufacturers.
On 8 March, the Government improved the mechanism for using the funds allocated for compensation to farmers for purchased machinery and equipment. In particular, it has taken into account new business circumstances related to russia’s aggression against Ukraine, simplified the mechanism and provided a wider range of manufacturers with the opportunity to be included in the list. The key requirements for being included in the list are the level of localisation, the availability of a certificate of compliance with the quality management system in production, the share of labour costs, etc.
For more information visit the Ministry of Economy official website.
