Localization, grants, and insurance: what changes for businesses will take effect in 2026

New rules for businesses starting in 2026 include increased localization in public procurement, grants of up to UAH 1 million, property insurance against military risks, and export restrictions. Find out what opportunities the updated “Made in Ukraine” program opens up

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At the beginning of 2026, updates to the state policy of supporting national producers, “Made in Ukraine,” came into force in Ukraine. This was reported by Dmytro Kysilevsky, Deputy Chairman of the Verkhovna Rada Committee on Economic Development, on his Facebook page.

The key focus of the changes is to strengthen domestic production, reduce raw material exports, and expand financial support for entrepreneurs, particularly in the context of military risks.

Increased localization: new requirements for public procurement

From January 1, 2026, the minimum level of localization in public procurement has increased from 25% to 30%. This is the next stage in the implementation of the norm established back in 2022. According to it:

the starting level of localization was 10%;

the indicator increases by 5% each year;

the final goal is 40% localization.

State and municipal customers will give preference to Ukrainian-made goods.

Companies that want to participate in tenders are forced to invest in production in Ukraine, not just in imports.

Manufacturers have the right to update their data in the register and confirm the new localization level from January 1.

In addition to mechanical engineering and transport, from 2026, the priority will also extend to:

light industry;

electrical engineering;

elevator manufacturing;

tractors;

large-diameter pipes;

metal structures.

According to Kysilevsky, it was the localization mechanism that made it possible to maintain the production of urban and railway transport, special equipment, and energy equipment during the war, ensuring stable demand from the state.

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Insurance against military risks: a new tool for protecting businesses

On January 1, 2026, Ukraine launched a mechanism for insuring property against military risks, administered by the Export Credit Agency (ECA).

This is one of the key steps to reduce the risks of investing and doing business in wartime.

1. Direct compensation for losses

The mechanism is available to companies operating in frontline regions, in particular in:

Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions.

Insurance rate — 0.5% of the amount of possible damage;

maximum compensation from the state — up to UAH 10 million.

2. Compensation for insurance premiums

Applies throughout Ukraine and is aimed at reducing the cost of commercial insurance.

the state compensates part of the insurance tariff;

limit — up to UAH 1 million per contract.

UAH 1 billion has been allocated in the 2026 state budget for the implementation of both instruments.

Zero export quotas for scrap metal and timber

From January 1, 2026, a zero quota has been introduced for the export of ferrous and non-ferrous scrap metal, as well as industrial timber and firewood.

The state is focusing on domestic processing rather than the sale of raw materials.

“It is not timber and scrap metal that should be exported, but value-added products such as furniture, modular houses, pipes, and machines,” emphasized Dmytro Kysilevsky.

According to government estimates

wood processing generates tens of times more tax revenue than its export

scrap metal processing generates hundreds of times more.

It is separately noted that these areas have been a source of shadow schemes and tax evasion for years.

The “Own Business” program: more money and new opportunities

Although the increase took effect on January 1, 2025, in 2026 the program is already operating under new, expanded rules.

Key changes

maximum microgrant — UAH 350,000 (instead of UAH 250,000);

the possibility of receiving a repeat grant after the successful completion of the previous one;

veteran grants of up to UAH 1 million are now also available to parents and adult children of veterans.

Program results

Since June 2022:

31,500 grants have been issued;

for a total of UAH 7.7 billion;

45,700 new jobs have been created.

National stands at international exhibitions

In 2026, for the first time in many years, the state is resuming funding for Ukraine's national stands at international exhibitions.

This will enable Ukrainian companies to:

present their products to foreign buyers;

find new export contracts;

strengthen the “Made in Ukraine” brand abroad.

UAH 50 million has been allocated for the program. The government calls it a pilot project, the results of which will determine further scaling.

Are you starting a new business or developing an existing one? Our lawyers will help you avoid mistakes and protect your interests at every stage.

Reminder! We previously reported that the number of new entrepreneurs in Ukraine is growing again, despite difficult economic conditions and wartime. This is due not only to the recovery of business, but also to changes in tax rules, which have forced many sole proprietors to resume work. Find out how many new entrepreneurs appeared in 2025 and what is behind this growth in our article.

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