The EU Parliament has warned about inadmissibility of support of the Ukrainian engineering

ЕС предупредил Раду о недопустимости поддержки украинского машиностроения

The EU considers the support of the Ukrainian engineering as discrimination of foreign producers

European banks might stop providing loans to Ukrainian companies and organizations in the case of a law with the requirement of localization of production.

The draft government decree on Some issues of implementation of the pilot project for procurement of equipment machinery industry with a proven degree of localization of production contradict commitments of Ukraine on public procurement within the framework of the Association agreement EU-Ukraine. This is stated in the letter of the Ambassador of the European Union Matti Maasikas to the Prime Minister Denis Shmyhalou and the head of the Verkhovna Rada Dmitry Razumkov from July 3 announced the publication of Our pennies.

The draft resolution stipulates the requirement to provide for the procurement of engineering equipment 15% -30% of the production of parts for her in Ukraine.

“In our view, it would be a significant breach of the foundations of equal treatment and non — discrimination,” stressed the EU Ambassador.

He also expressed concern with the registration in the Parliament on June 24 of bill No. 3937 on amendments to the law on public procurement to create the prerequisites for sustainable development and modernization of the Ukrainian industry.

“This bill introduces the requirement of localization of production for a significant list of industrial goods and means of transport for a period of 10 years, which in our assessment will also violate article IV of the WTO agreement and article 151 (1) of the agreement on Association”, — is spoken in the letter.

This not only undermines the fundamental principles of equal treatment and non-discrimination, but, given the degree of localization that is required by the bill (up to 60%), de facto deprives foreign products opportunities to participate in procurements in those areas, says the official representative of the EU.

The intention to introduce the same level of localization in procurement related projects from the European investment Bank can have a serious negative impact on the future activities of such institutions in Ukraine and the appropriate support of the EU, warned Maasikas.

We will remind, earlier the Cabinet has approved three projects with the EU at €105 million They are allocating grants to Ukrainian business people, farmers and reforms for European integration.