The Verkhovna Rada has passed the first reading of a draft law that mandates the localization of civilian goods in defense procurement. The measure, known as draft law No. 1339,2, is a significant step in Ukraine’s efforts to bolster its domestic defense industry and reduce reliance on foreign suppliers.
The legislation aims to ensure that a certain percentage of civilian goods used in defense procurement are produced domestically. This includes requirements for components, materials, and services to be sourced from local manufacturers. The law is part of a broader strategy to strengthen Ukraine’s defense capabilities and economic resilience in the face of ongoing challenges.
Industry experts and government officials have welcomed the move as a step towards self-reliance and technological advancement. However, some have raised concerns about the potential impact on costs and the need for infrastructure development to support local production. The law will now proceed to the second and third readings, where further details and amendments may be introduced.