Domestic manufacturers are ready to go into partnership with the government to implement large-scale state programs for the manufacture of farm and road construction equipment, locomotives and military hardware, which were announced by Ukrainian Prime Minister Volodymyr Groysman. He promised strong support for machine engineering to maintain the localization of production, save revenue in foreign currency spent on the purchase of equipment, which can be produced domestically, and provide Ukrainians with jobs. Such plans are backed by the Ukrainian League of Industrialists and Entrepreneurs (ULIE), the Anti-Crisis League of NGOs.
The government announced it would allocate funds to buy equipment for rescue and firefighting services, and agricultural equipment. The Cabinet also stressed the need for the support of manufacturers of railway cars and locomotives for the Ukrainian Railways (Ukrzaliznytsia). It also announced plans to form a pool of orders for domestic enterprises of the machine building industry.
“The idea that the industry in general and its advanced sectors, namely engineering, should become the core of Ukraine’s economic development was formulated by the business community in the anti-crisis program of joint actions by the government and businesses. Every industrial producer should have equal, government-guaranteed conditions for the development and modernization,” ULIE President Anatoliy Kinakh has said.
In his words, on the one hand, the government claims that the support of the industry is a priority; on the other hand, the National Commission for State Regulation of Energy and Public Utilities from February 1 is to raise power rates for industrial consumers by 1-3%, while NJSC Naftogaz of Ukraine is going to increase prices of natural gas by 22%. This is a significant deterioration in economic conditions for many manufacturers, including machine builders.
“To change the model of Ukraine’s economic development and the transition from raw materials to a model based on investment and innovation is a comprehensive and responsible task. It requires a thorough analysis of current problems the industry is facing, while populism and incompetence must be rooted out. It also requires that a high-quality, system-oriented program be developed and implemented on the basis of international standards and trends to rebuild and develop Ukraine’s industrial sector. The ULIE and the Anti-Crisis Council of NGOs are ready to directly participate in the process,” Anatoliy Kinakh has said.
