Selling to the Government
Many governments finance public works projects through borrowing from the Multilateral Development Banks. Please refer to “Project Financing” Section in “Trade and Project Financing” for more information.
National law regulates the public procurement of goods, works, and services. According to Ukrainian law, public tenders must be held for the procurement of goods, works, and services if the cost of goods is equal to or greater than UAH 100,000 (roughly $4,500) and if the cost of works is equal to or greater than UAH 1,000,000 (roughly $45,000). The government must publish the announcement of the tender and its results. Open international tenders must be used when procurements are financed by foreign entities. Government procurement is also governed by international treaties to which Ukraine is a party, including Chapter 8 of Title IV of the Association Agreement with the EU, as well as the WTO Government Procurement Agreement.
Starting on August 1, 2016, all government agencies in Ukraine began using an e-procurement system, the PROZORRO portal. Ukraine’s implementation of the e-procurement system will create significant opportunities for American companies to participate Ukrainian government tenders. American suppliers interested in current public procurement opportunities in Ukraine may register for notifications at the Ukrainian Public Procurements Official National Web Portal and at the open source government e-procurement system PROZORRO.
The Anti-Monopoly Committee of Ukraine has the power to review disputes arising from public procurements related to procurement procedures through its Complaint Board.
Courts may also hear government procurement-related cases. Cases must be filed on tight timelines, within 10 days of alleged violations. U.S. companies may also file a complaint with Ukraine’s Business Ombudsman Council. The post of Business Ombudsman is an essential element in Ukraine’s fight against corruption and is supported by the EBRD, the OECD, and multiple business associations, including the American Chamber of Commerce in Ukraine. The Business Ombudsman’s regulatory status allows the ombudsman or his/her representatives in the field to report claims of unfair treatment and corruption. The Business Ombudsman Council assesses the claims. Where it concludes that the alleged business malpractice may have occurred, it can request further investigation by the relevant bodies and seek to have these complaints addressed by governmental authorities. The ombudsman periodically reports to the public, including the business community, about the progress made in the fight against corruption.
In addition to direct government tenders, Ukraine currently receives international assistance from multiple multilateral development banks for major infrastructure development projects. These projects create significant export opportunities for U.S. companies. Tender announcements for these projects are on the websites of the World Bank, the European Bank for Reconstruction and Development (EBRD); the International Finance Corporation (IFC), and the United Nations Development Program (UNDP).