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Ukraine approves compensation of 15% of agri machinery cost to farmers

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Ukrain agri products
Farming in Ukraine   The volume of agricultural engineering goods

Starting from 2017 farmers will receive partial compensation of the cost of agricultural machinery in the amount of 15% of its cost via banks if the production localization for the machinery in Ukraine exceeds 35%.

Ukraine's Cabinet of Ministers approved the relevant resolution in Kyiv.

"We want to achieve that the localization of Ukrainian agricultural machinery manufacturers by 2020 reaches 60%," Agricultural Policy and Food Minister of Ukraine Taras Kutoviy said presenting the documents at a government meeting.

He said that the decisions made foresee the increase of localization to 45% in 2018, to 55% in 2019 and to 60% in 2020.

The minister recalled that the legislation passed at the end of 2016 allocates 0.1% of the cost of gross agricultural products for this partial compensation, or around UAH 550 million.

He said that next year the sum will be increased to 0.15% or around UAH 900 million, and will reach 0.2% in 2019, exceeding UAH 1 billion.

"The volume of agricultural engineering goods will be over UAH 4 billion," Kutoviy said. He added that deterioration of agricultural machinery at farms today is some 85%, and its pace exceeds the upgrade pace.

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