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"We are working to make localization a new criterion." The head of the AOZ told what will change in defense procurement

The Head of the Defense Procurement Agency, Arsen Zhumadilov, noted that new legislative norms are currently being developed that will allow giving priority in defense procurement to enterprises that demonstrate the highest level of localization of production.

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"We are working to make localization a new criterion." The head of the AOZ told what will change in defense procurement

The Head of the Defense Procurement Agency, Arsen Zhumadilov, noted that new legislative norms are currently being developed that will allow giving priority in defense procurement to enterprises that demonstrate the highest level of localization of production.

«There is no legislative regulation for this. The Verkhovna Rada and the Cabinet of Ministers are working on it. Then we will be able to give preference to manufacturers in which the largest share of added value is created in Ukraine. We are working to ensure that localization becomes a new criterion for procurement,» he noted in an interview with Forbes.

According to him, the largest percentage of purchases will be given to manufacturers who have localized their products by 50%.

«If it’s less, then their priority is reduced,» he clarified.

The head of the AOZ added that they are also working on changing the mechanisms of how the need is formed and how lists and volumes from the General Staff and the Ministry of Defense are brought to them. «This is necessary to avoid a failure with contracting at the beginning of the year. Production will not stand without orders,» Zhumadilov promised.

He added that a total of 1,281 companies have been verified for public health procurement since April, and the verification process itself takes approximately two weeks.

As dev.ua recently reported, the DOT-Chain Defence «weapons marketplace» has launched in Ukraine. 1 billion hryvnias have been allocated for the pilot launch to purchase drones.

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