Ukraine Allocates 5.6 Billion Hryvnias to Boost Domestic Industry

Supporting Ukraine's Domestic Producers

According to Главком: The Ukrainian government has approved the allocation of over 5.6 billion hryvnias to support programs for domestic manufacturers. According to Prime Minister Yuliia Svyrydenko, these funds will be directed toward several key areas, including:

• compensation for farmers;
• support for Ukrainian-made goods;
• development of industrial parks;
• demining of land;
• investment projects.

Specifically, 1.8 billion hryvnias will fund a partial 25% reimbursement for agricultural machinery and equipment for approximately 5,000 farmers and food producers. A further 1.2 billion hryvnias is planned for supporting Ukrainian goods and services through two programs: 700 million hryvnias will go to the 'National Cashback' program, and 475 million hryvnias will partially compensate businesses and municipal enterprises for the cost of Ukrainian industrial machinery and equipment.

One billion hryvnias has been earmarked for developing the industrial infrastructure of industrial parks, with another 1 billion hryvnias directed toward compensating for the costs of demining agricultural land through the 'Humanitarian Demining' program. To support the implementation of investment projects involving significant capital, 653.1 million hryvnias will be provided to compensate investors for infrastructure development costs.

Funding for 'Made in Ukraine' Programs

Funding for 'Made in Ukraine' programs is projected to reach approximately 37 billion hryvnias in 2026. New rules for the national cashback program will take effect on March 1, 2026, replacing the standard 10% rate with either 5% or 15%. A 15% cashback will apply to Ukrainian goods in categories where imports exceed 35% of the consumer basket, while a 5% rate will apply to categories with import levels below 35%. The plan also includes payments of up to 15,000 hryvnias to individual entrepreneurs and zero-interest loans for energy equipment.

This government initiative aims to bolster the Ukrainian economy amid the significant challenges the country faces, including the ongoing Russian aggression.

The proposed funding is designed to strengthen domestic production, enhance the competitiveness of Ukrainian goods in the market, and stimulate investment. This comprehensive program underscores the critical importance of developing Ukraine's agriculture and infrastructure, which are vital for the nation's broader economic recovery. The support for domestic industry is a key part of Ukraine's strategy to build a more resilient and self-sufficient economy during wartime.