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 on Tuesday.
"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 on Tuesday.
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.
IC UAC according to Interfax-Ukraine.