"Made in Ukraine" subsidy program to cost Kyiv over a billion dollars - Financial Times
Kyiv • UNN
The "Made in Ukraine" project will prioritize domestic production of military components, weapons, and goods to increase Ukraine's self-sufficiency in the face of delays in foreign aid.
The "Made in Ukraine" project should stimulate the country's military economy, so it will prioritize domestic production of components, weapons and military-related goods. This is stated in an article by the Financial Times, according to UNN .
Details
It is noted that Ukraine's budget for this year has a deficit of $43 billion, much of which is covered by the EU and the IMF.
However, the failure of the United States to approve a $60 billion financial package for Ukraine and the two-month delay in the EU's approval of a €50 billion aid package for Kyiv have made the Ukrainian authorities feel the urgency to look for domestic solutions to the problem.
"Made in Ukraine": Ukraine approves trademark imagesFeb 27 2024, 08:17 AM • 22707 views
So this year, the Ukrainian government will launch a $1.2 billion "Made in Ukraine" subsidy scheme to stimulate domestic production of goods in an attempt to increase tax revenues and make the economy less dependent on foreign aid
We are well aware that macro-financial assistance may decrease from year to year, and if the war continues, it means that we have to be more self-sufficient. Our goal is to really change the structure of the economy... to increase the share of the manufacturing industry
As for the cashback initiative, which Svyrydenko said will be implemented by June, the benefits will be credited to a special card that will be used only in the country.
Preliminarily, the initiative also provides for compensation to domestic producers of agricultural machinery in the amount of UAH 1 billion.
Some businessmen said that the scheme has the potential to attract foreign capital.
In particular, Konstantin Efimenko, CEO of Biopharma, said that if foreign investors "do not understand that everything is fine here, no one will come here.
Addendum
According to Zelenskyy, the "Made in Ukraine" program will consist of cheap credit lines and grants for Ukrainian producers, including arms manufacturers, as well as incentives to use Ukrainian-made materials for reconstruction and refunds to citizens who buy local goods.
Economy Minister Yulia Svyrydenko also said that thanks to the program "Made in Ukraine" Kyiv will be able to return most of the funds invested in the development of producers in a year.
We estimate that out of the expected 4.6% GDP growth this year, 1% will come directly from contributions from support programs. In the first year, 86% of the funds invested in the development of producers will be returned through taxes.
One of the steps is a cashback for Ukrainian-made agricultural machinery, available loans and grants for investment in production in Ukraine, and potential expansion of localization, excluding goods from GPA countries
The project will prioritize domestic production of components, weapons, and war-related goods, such as demining equipment and reconstruction materials.
Public procurement in these areas will require that the product consist of 20% Ukrainian-made components.
Recall
On February 26, President of Ukraine Volodymyr Zelenskyy announced the launch of the Made in Ukraine platform , which is supposed to become a platform for dialogue between the state and Ukrainian entrepreneurs.
