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Novelties introduced by Ukrainian Public Procurement Law 2014

On 13 May 2014, Nobles partner Alexander Weigelt took an active part in the meeting organized by the Embassy of Germany, where he discussed newly adopted law “On State Procurement” with representatives of German business community in Ukraine. Inter alia, the following issues were considered:

  • Significantly reduced list of exemptions from the scope of public procurement (from over 30 up to 11);

  • Replacement of a tender procedure with a sole participant (which highly effected Ukrainian competition) with a negotiation procedure;

  • Cancellation of a requirement for bidders to have its own production facilities and/or service centers in Ukraine;

  • Decrease of a bidder security from 1% to 0,5 % for works and from 5% to 3% for goods/services.

State procurement has always been of a high interest for Ukrainian businesses, though, its policy has considered to be extremely corrupted and non-transparent. Hopefully, the recent amendments will result in effectiveness of a procedure and, thus, will lead to more favorable business climate in Ukraine. Nobles regularly advises foreign suppliers with regard to public procurement procedures and other regulatory matters in Ukraine. Should you have any inquiries, please feel free to contact Alexander Weigelt today at +38 044 4953080 or email a.weigelt@nobles-law. com.

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