February 7, the
Ministry of Economic Development and Trade of Ukraine hosted a meeting on
mechanisms to provide support to Ukrainian manufacturers of specialized road machinery
with First Vice Prime Minister, Minister of Economic
Development and Trade of Ukraine Stepan Kubiv as Chair.
ensure large-scale construction of roads in Ukraine we need a range of
different road equipment, and Ukraine has production facilities for at least 15
groups of such machinery. Therefore, we propose to direct around UAH 500
million as the state support to provide for Ukrainian enterprises an
opportunity to upgrade their facilities and boost production," Stepan Kubiv emphasized.
that the developed mechanism will allow to encourage
the modernizing of industrial capacities of road building enterprises due to
partial compensation of the cost of road construction machinery produced in
Ukraine and interests on loans for the purchase of such equipment. The
mechanism will be similar to the program of compensation for the cost of
agricultural machinery, as it will work on the ‘money follows the client’
principle. Thus, the decision as to what equipment to buy and when will be
taken by the buyer, choosing from the list of Ukrainian manufacturers approved
by the Cabinet of Ministers of Ukraine.
"It is a
fact that enterprises engaged in road construction activities often take loans
for the purchase of a large number of road construction machinery. Therefore,
support in the form of partial compensation of the cost or interest on loans
for domestic production should increase its competitive advantages with respect
to imported analogues," Stepan Kubiv emphasized.
emphasized that, on the proposal of the Ministry of Economic Development and Trade,
the source for financing of the above-mentioned initiative may be the Road Fund.
"1% of the Road
Fund budget makes up almost UAH 500 million, which should be allotted for this state
support program. I think this is a logical proposal that will allow not just to
build roads, but to promote our industry, to create new jobs," said Stepan Kubiv.
He also added
that the implementation of such an initiative would afford us to attract interested
investors to create joint ventures in Ukraine for the production of road
investors are keen on the possibilities of setting up such enterprises in
all, the demand for Ukrainian road construction machinery is supported by ambitious
plans of the Government to construct and overhaul road infrastructure in the
country," stressed the First Vice Prime Minister.
On the outcomes
of the meeting, the participants agreed upon the principles included in the
draft resolutions of the Government on the mechanism to encourage the provision
of specialized road equipment for enterprises of the road sector and the
municipal economy. After
the Ministry of Economic Development together with Ukravtodor,
the state banks and businesses finalize the draft resolution, it will be
submitted for approval to the Cabinet of Ministers.