Order of the Ministry of Economic Development of Ukraine dated May 18 this year approved personal composition of the commission on formation of the list of domestic machinery and equipment for agriculture complex the cost of which is partially compensated by the proceeds of state budget. The commission is attended by Taras Vysotskyi, General Director of the Association ‘Ukrainian Agribusiness Club’, and is headed by Stepan Kubiv, First Vice Prime Minster of Ukraine - Minister of Economic Development and Trade of Ukraine.

It bears reminding that on March 15, 2017 ‘Procedure for using funds provided by the state budget for partial compensation of the value of agricultural machinery and equipment of domestic production’ (hereinafter - the Procedure) approved by the Cabinet of Ministers of Ukraine dated March 1, 2017 under No.130 came into force.

Pursuant to this Procedure agricultural producers will be able to return part of proceeds spent on the purchase of domestic machinery and equipment. Partial compensation is to be provided for the machinery which local content of manufactured products exceeds 60% (for tractors and special vehicles for agricultural purposes - from 20 to 35%).

The Procedure defines local content of manufactured products as a relative share of the cost of raw materials, assemblies, units, components and spare parts of domestic production included in the prime cost of machinery and equipment (this definition is stipulated by para. 5, Art. 1 of the Law of Ukraine ‘About Stimulation of Development of Domestic Engineering Industry for Agribusiness Industry’).

The list of machinery and equipment which cost is to be be partially compensated out of the budget proceeds will be drawn up by a special commission and posted on website of the Ministry of Economic Development and Trade of Ukraine. The list will include equipment of manufacturers who are the residents of Ukraine for not less than 2 years, have all necessary design and technological documentation, manufacture products within the territory of Ukraine as well as provide warranty and post-warranty service for products. Partial compensation will constitute 20% of the cost of equipment and machinery excluding VAT.