Business discusses the need to adopt the draft law “On the Timber Market” in full

13/ 03/ 2025

The European Business Association once again expressed its support for Draft Law No. 4198-D at the press conference Ukraine First: How the Draft Law On the Timber Market Will Revive the Industry. The EBA Committee Manager emphasised that EBA experts have been working for years to develop the optimal version of this draft law. Now, there is a historic opportunity to pass it in the second reading, ensuring effective regulation of the timber market in the interests of both business and the state. During the final meetings, the working group refined the text in line with market conditions. The draft law establishes the legal, economic, and organisational principles for selling unprocessed timber and fuelwood based on transparent competition and sustainable use of forest resources. According to EBA experts, the key changes that will positively impact the industry include: Defining key terms at the legislative level. Introducing fundamental principles for the functioning of the timber market. Clarifying the powers of state authorities in regulating the market. Incorporating domestic woodworking enterprises into a dedicated state register. Legislatively establishing a formula for determining the starting price of timber (calculated by the State Forestry Agency). Setting requirements for market participants, including sellers, auction organisers, and buyers. Regulating the allocation of timber for the needs of the Armed Forces of Ukraine, public procurement, and retail sales to individuals for social needs. The EBA supports the adoption of this draft law as it incorporates key business proposals, including: The cascading auction principle, which allows both price increases and reductions, ensuring fair competition. The priority right for Ukrainian processing enterprises to purchase timber at stock exchange auctions, protecting them from market abuses. The continuation of the moratorium on unprocessed timber exports, promoting investments in domestic production, job creation, and increased tax revenues. Global trends show that countries are increasingly implementing tariffs to protect national manufacturers and stimulate local production. Therefore, the business community urges the adoption of Draft Law No. 4198-D, which will strengthen the potential of Ukraines woodworking industry and boost the export of high-quality finished products to the EU.

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The European Business Association once again expressed its support for Draft Law No. 4198-D at the press conference “Ukraine First: How the Draft Law ‘On the Timber Market’ Will Revive the Industry.” The EBA Committee Manager emphasised that EBA experts have been working for years to develop the optimal version of this draft law. Now, there is a historic opportunity to pass it in the second reading, ensuring effective regulation of the timber market in the interests of both business and the state. During the final meetings, the working group refined the text in line with market conditions.

The draft law establishes the legal, economic, and organisational principles for selling unprocessed timber and fuelwood based on transparent competition and sustainable use of forest resources.

According to EBA experts, the key changes that will positively impact the industry include:

Defining key terms at the legislative level.
Introducing fundamental principles for the functioning of the timber market.
Clarifying the powers of state authorities in regulating the market.
Incorporating domestic woodworking enterprises into a dedicated state register.
Legislatively establishing a formula for determining the starting price of timber (calculated by the State Forestry Agency).
Setting requirements for market participants, including sellers, auction organisers, and buyers.
Regulating the allocation of timber for the needs of the Armed Forces of Ukraine, public procurement, and retail sales to individuals for social needs.

The EBA supports the adoption of this draft law as it incorporates key business proposals, including:

The cascading auction principle, which allows both price increases and reductions, ensuring fair competition.
The priority right for Ukrainian processing enterprises to purchase timber at stock exchange auctions, protecting them from market abuses.
The continuation of the moratorium on unprocessed timber exports, promoting investments in domestic production, job creation, and increased tax revenues.

Global trends show that countries are increasingly implementing tariffs to protect national manufacturers and stimulate local production. Therefore, the business community urges the adoption of Draft Law No. 4198-D, which will strengthen the potential of Ukraine’s woodworking industry and boost the export of high-quality finished products to the EU.