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WHY THE FEDERATION OF EMPLOYERS OF UKRAINE WILL CONSISTENTLY AND UNCOMPROMISINGLY REQUIRE MANDATORY LOCALIZATION IN PUBLIC PROCUREMENT!

17.06.2020

Ruslan Illyichov, Executive Director of the Federation of Employers of Ukraine


Because public finances are our taxes, and we have the right to tell the authorities at all levels how to spend hundreds of billions of hryvnias  a year.


Because localization of production is jobs, new productions and technologies, high added value.


Because that's what all "smart" countries do from Kazakhstan to the United States and Algeria. No free market regulates anything! We have analyzed public procurement since 2015. No foreign manufacturer, which  had imported us its product  under contracts of more than 100 million hryvnias did not localize a single percent of production in Ukraine, did not make any screws or nuts.

 

Don't you believe ????  A contract for 1 billion dollars with GE locomotives.  Where is the real localization, which, by the way, was prescribed in the contract? Who will be personally responsible for its absence? Who will compensate Ukraine  lost jobs?


  

  

 

Because localization is almost the only way and opportunity for Ukraine to have real cooperation with world producers and inclusion in production chains. There is simply no other way - "industrial dialogue" and investments are born in production, not in slides of pseudo-presentations "sorosyat".

 

Today, in Ukrainian trams, trolleybuses, high-speed and diesel trains, fire engines and municipal vehicles, ambulances, turbines and compressors  for 20 to 70 percent of the world's leading engineering industry complete set is used.

 

And they are ready to produce a part of the complete set in Ukraine under the condition of stable orders. We know this because we communicate with them in the language of contacts and partnerships!  We are a large family of the International Organization of Employers, where we have partners from 150 countries! We know better than any experts and "nannies" what Alstom, Siemens, Mazotti or DEUTZ need to produce in Ukraine.

 

Localization is today the fastest way to attract investment. No "investment nanny" will help us. Polish, Romanian or even Belarusian "nannies" are already working much better and have much more support tools. But when we tell an investor that the market for 700 locomotives for the next 5 years will be the one who will create the localization, it will be a much better argument for investment than "nannies", deregulation and talk about Ukraine's place in Doing Business.


We tell the Government - do not consider localization as solely supporting domestic producers. View it as an invitation and incentive to invest for companies from around the world !!!

 

Ukrainian companies can and already produce competitive serial products, having many foreign partners in their localization.

 

And it is very strange to me when some politicians, experts and "grant eaters" on the air and on the Internet have already started a campaign to discredit the idea of localization, pouring mud on national producers and telling nonsense about  "Zaporozhets" car brand and backward non-competitive industries.

 

We are competitive. And this is very easy to see - come to "Electron”, "Cherkasy bus” or "Bogdan”  and look at the trams, buses and electric buses they produce. Visit  "Kryukiv Carriage Building”  Plant with its high-speed trains, diesel trains and metro. Visit "Pozhmashina” and "Spetsbudmash” - and see the road and special equipment that they are able to provide all regions of Ukraine. Take a look at the production capabilities of "Turboatom”, "Zorya Mashproekt” or "Nikmas”.

 

All you need is a desire to see our strengths, competencies and strengths and give domestic producers the opportunity to maximize their potential.I am sure that together with our friends and like-minded people - Igor Petrashko, Dmytro Kysylevsky, Roksolana Pidlasa and hundreds of Ukrainian entrepreneurs will succeed.


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