Can a Foreign Company Participate in Public Procurement in Ukraine?

Short answer: Yes. Ukraine welcomes international companies to participate in state tenders, guaranteeing equal conditions and non-discrimination for foreign and local businesses alike.

How It Works in Practice

1. Open Access via Prozorro: All public tenders in Ukraine take place digitally through accredited electronic platforms connected to the Prozorro ecosystem. Any international supplier can set up an account, view tender notices, and submit bids online.
2. No Need for a Local Branch to Supply Goods: If a company only supplies physical goods, it does not need to open a local subsidiary, branch, or representative office in Ukraine.
3. When Local Presence Matters: If a tender covers complex construction, installation, or services requiring local permits or specialized licenses, registering an official presence in Ukraine may be necessary.
4. Document Analogs: Foreign companies are not expected to have Ukrainian-specific tax certificates or corporate documents. Instead, they can provide equivalent official documents from their home country along with a certified translation into Ukrainian.

Key Requirements & Exceptions

1. Sanctions & Restrictions: Entities registered in or owned by residents of Russia, Belarus, or Iran, as well as companies under active international or national sanctions, are strictly barred from participating.
2. Equal Price Comparison: Tender prices are compared on a net basis (excluding VAT). This levels the playing field so foreign companies without Ukrainian VAT registration can compete fairly alongside local suppliers.
3. Local Content Rules: While Ukrainian law sets local content requirements (a mandatory percentage of Ukrainian-made components) for certain equipment and machinery tenders, these rules do not apply across the board. Under statutory exemptions, suppliers from signatories to international procurement agreements – most notably the WTO Government Procurement Agreement (GPA) – are fully exempt. This means businesses from EU member countries and other GPA partner nations can participate without needing to meet local manufacturing thresholds.

Future Outlook

Looking ahead, market access for international suppliers will become even smoother. Ukraine has recently adopted a new public procurement framework designed to fully align national procedures with EU standards. Coming into effect in 2027, this reform will further open up procurement opportunities and streamline cross-border participation.

Summary & Next Steps

Foreign suppliers can readily enter Ukraine's public procurement market, especially for reconstruction, energy infrastructure, and high-tech supplies. Navigating the system simply requires clear bid documentation, accurate translations, and compliance with specific tender rules.

At UENTRY, we assist foreign businesses through every step of this process to ensure smooth access to public tenders in Ukraine. If you are planning to enter the market or participate in state procurements, feel free to contact us at ah@uentryadvisory.com.