On April 3, 2026, the Cabinet of Ministers of Ukraine adopted Resolution No. 443, introducing amendments to Resolution No. 130 of March 1, 2017, “On Approval of the Procedure for the Use of State Budget Funds Allocated for Partial Compensation of the Cost of Domestically Produced Agricultural Machinery and Equipment.”

Experts of the Ukrainian Agri Council (UAC), within a project to support affected agricultural producers in partnership with the international humanitarian organization Mercy Corps, have prepared a brief explanation of the key changes for agricultural producers based on this resolution.

The main update is that farmers operating in areas of possible or active hostilities will be eligible for compensation of up to 40% of the cost of domestically produced agricultural machinery and equipment (excluding VAT).

This applies to agricultural producers whose land is at least 80% located in such territories and whose business is registered there at the time of application. For other producers, the existing compensation mechanism remains in place at 25% of the cost of machinery.

The resolution also improves the approach to determining the Ukrainian content in machinery production. This is expected to expand opportunities for domestic manufacturers and increase the range of equipment eligible for compensation.

To participate in the program, agricultural producers must:

• select machinery from the official list available on the Ministry of Economy’s website;
• purchase the machinery;
• submit an application through an authorized bank via which the payment was made.

Currently, the list includes 14,425 items from 166 Ukrainian manufacturers, and UAH 1.8 billion has been allocated for the program in 2026.

You can review the full text of the informational digest with a detailed explanation of the changes to the partial compensation procedure via the link:
https://drive.google.com/file/d/1YlJyLpT0NpRYELdJX73t5S_Sc88y-4ug/view?usp=drivesdk

We remind that UAC experts continue to support agricultural producers on issues related to employee reservation, critical status designation, accounting and taxation, land relations, and participation in state support programs.

To receive a consultation, please submit your request via the online form:
https://forms.gle/v56UzTAsrD9Zrx998

For additional inquiries, please contact the legal advisory hotline at:
+38 067 522-03-43

Background:

Mercy Corps is an international humanitarian organization that operates in more than 40 countries worldwide and provides assistance to people affected by disasters, wars, poverty, and the impacts of climate change.