The share of imported construction materials in the Ukrainian market increased from 14% in 2021 to 23% in 2023, and the domestic construction materials market needs systematic support from the state.
This opinion was expressed by Volodymyr Vlasiuk, CEO of Ukrpromvneshexpertiza, Chairman of the CCIU Committee on Industrial Modernization, during the round table “Building Materials. Preparedness for Market Needs for Recovery” held at the Interfax-Ukraine news agency on Tuesday.
“The share of imports in covering domestic consumption has increased from 14% in 202 to 23% in 2023. Thus, even the funds that go through the public procurement procedure can be largely used for imports. More research is needed on individual materials, but the upward trend in the use of imported materials in a developed industry is generally negative for the economy,” Vlasiuk said.
He said that the second study of the construction materials market and its ability to meet the country’s needs since the beginning of the war is currently underway.
“The situation is changing dynamically. But there are still no glass production plants, as before. There are several (investment) projects, but they are not yet operational. As for such commodities as PVC, production has resumed and capacities have increased. New capacities are being built in the cement industry. But electrical equipment is still not available, as it was before the war. This is still a field for investment projects that should be stimulated by the state,” Vlasiuk said.
The expert highlighted key issues that businesses will not be able to solve without government involvement.
“In terms of stimulating demand, the role of the state is huge, as it increases procurement (for defense and recovery projects). It is extremely important that these funds are not spent on imported materials. We understand the extraordinary conditions in which Ukraine exists, we are at war. Therefore, in accordance with international law, we can apply, for example, Article 21 of the WTO, which allows a country to temporarily suspend its obligations assumed when joining the WTO,” Vlasiuk said.
He emphasized the need to focus on localization, purchasing materials (for budgetary or donor funds) only if at least some of them are produced in Ukraine.
The issue of booking specialists is also important. “It is necessary to find a balance between the needs of the economy and the frontline. Both areas are necessary for the country’s sustainability,” he said.
Another key task is to provide autonomous energy supply. “Obviously, it is necessary to move to a model of autonomous energy supply, for example, from alternative sources, primarily solar power plants. The state, together with partners, should offer good, cost-effective tools, as this requires a significant amount of funds,” Vlasiuk said.
