Business news from Ukraine

Public procurement of Chinese and Turkish goods violates law on localization – opinion

31 August , 2024  

Public procurement of Chinese and Turkish goods is in violation of the law on localization to the detriment of Ukrainian producers, said Dmytro Kysylevsky, Deputy Chairman of the Parliamentary Committee on Economic Development.
“While Ukrainian producers are working under fire and paying salaries to Ukrainian citizens, public customers are spending money on Chinese and Turkish goods, violating the law on localization,” the MP wrote on Facebook on Saturday.
He also noted that the number of tenders with gross violations increased to 15 in July. In these cases, Chinese and Turkish trams, buses, bulldozers, etc. were purchased at the expense of state-owned companies and company taxpayers. As a result, Ukrainian citizens lose their jobs, Ukrainian enterprises lose their orders, and state and community budgets lose taxes. Ultimately, this is a direct damage to the Armed Forces in the context of war, Kysylevsky emphasized.
According to him, the top 5 of this “rating of shame” include: Kryvyi Rih City Council’s Skhidnyi Tram, which purchased a Turkish-made Bobcat excavator worth UAH 7.56 million, the supplier being Alfatech Trading House LLC. Also, Mykolaiv Parks Municipal Enterprise of Mykolaiv City Council purchased a Chinese road machine MDK-5/28 worth UAH 7.5 million, the supplier being Production and Commercial Enterprise Alfatex.
In addition, the Central Enterprise for Radioactive Waste Management purchased a Turkish bus AR-TEMSA PRESTIJ SX for UAH 5.49 million, the supplier being SpetsTechnika+ LLC. Also, Municipal Motor Transport Enterprise 072801 of the Uzhhorod City Council purchased a Chinese bulldozer SINOMACH GTY 160 for UAH 4.65 million, the supplier being Spetszapchastyna Trading Company LLC. And the executive committee of the Kurylivka village council of Kupianske village council in Kharkiv region purchased a Turkish dump truck on a Ford Trucks chassis for UAH 4.65 million, the supplier being TEK-TRANS LLC.
“For each of the 15 gross violations identified, I will send deputy appeals to the Ministry of Economy and the State Audit Service of Ukraine (SASU – IF-U) for response. On my initiative, the CMD Ukraine think tank will continue to investigate each tender with localization of procedural violations and outright fraud. No one expected the changes to be easy. But in the end, common sense must prevail. Ukrainian taxpayers’ money should be spent where jobs are created for Ukrainian citizens, not Chinese or Turkish ones,” the MP stated.
According to him, the Ukrainian industry is capable of meeting all the needs of the state and communities with high quality goods and services.
“We will continue to fight until every official realizes this,” summarized the Deputy Chairman of the Parliamentary Committee on Economic Development.