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The ЕВА сalls on the Verkhovna Rada to аdopt the draft law “On the Timber Market”

19/ 02/ 2025
  The European Business Association has addressed the President of Ukraine, the Verkhovna Rada, and relevant Ministries with an official letter in support of Draft Law No. 4197-d On the Timber Market. This draft law is EU integration-oriented and establishes the legal, economic, and organisational principles of the timber market. It regulates the sale of unprocessed timber and fuelwood to meet market participants needs based on the principles of free and fair competition and sustainable forest resource management. The EBA’s experts support the adoption of the draft law, as it reflects the key proposals made by the business community: The cascading principle of exchange auctions for timber sales – allowing both price increases and reductions, fostering transparent competition. Step-by-step timber sales process: Primary auctions (price increase) – exclusively for processing enterprises. Secondary auctions (remaining timber at a reduced price) – also limited to processing enterprises. Additional auctions – open to all businesses dealing with timber. Secondary additional auctions – open to all market participants. Priority purchasing rights for domestic processing companies at exchange auctions, protecting local manufacturers from potential market abuses. Continuation of the moratorium on unprocessed timber exports, enabling domestic processors to invest in production, create jobs, develop the labour market, and increase tax contributions. Additionally, the draft law regulates the powers of state agencies in market regulation; the calculation of starting timber prices; the functioning of the state timber register; market participant requirements; procedures for allocating timber for defence and social needs. The EBAs experts appreciate that business proposals have been taken into account and are confident that adopting the draft law in its current version will ensure effective timber market regulation that balances both business and state interests.

The European Business Association has addressed the President of Ukraine, the Verkhovna Rada, and relevant Ministries with an official letter in support of Draft Law No. 4197-d “On the Timber Market.”

This draft law is EU integration-oriented and establishes the legal, economic, and organisational principles of the timber market. It regulates the sale of unprocessed timber and fuelwood to meet market participants’ needs based on the principles of free and fair competition and sustainable forest resource management.

The EBA’s experts support the adoption of the draft law, as it reflects the key proposals made by the business community:

The cascading principle of exchange auctions for timber sales – allowing both price increases and reductions, fostering transparent competition.

Step-by-step timber sales process:

  • Primary auctions (price increase) – exclusively for processing enterprises.
  • Secondary auctions (remaining timber at a reduced price) – also limited to processing enterprises.
  • Additional auctions – open to all businesses dealing with timber.
  • Secondary additional auctions – open to all market participants.

Priority purchasing rights for domestic processing companies at exchange auctions, protecting local manufacturers from potential market abuses.

Continuation of the moratorium on unprocessed timber exports, enabling domestic processors to invest in production, create jobs, develop the labour market, and increase tax contributions.

Additionally, the draft law regulates the powers of state agencies in market regulation; the calculation of starting timber prices; the functioning of the state timber register; market participant requirements; procedures for allocating timber for defence and social needs.

The EBA’s experts appreciate that business proposals have been taken into account and are confident that adopting the draft law in its current version will ensure effective timber market regulation that balances both business and state interests.

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