Business calls for revision of Draft Law No. 13227 “On the Timber Market”

18/ 07/ 2025

The European Business Association expresses concern regarding certain provisions of the updated draft law On the Timber Market No. 13227 dated 29 April 2025. Following a detailed analysis of the document, the EBA’s experts do not support its adoption in the current version. According to the business community, the proposed changes may create unequal conditions for market participants and pose a number of risks to the functioning of the wood-processing industry. In particular, the business community highlights concerns with the following provisions: The classification of wood-processing enterprises into small and others, along with the introduction of restrictions on participation in certain stages of exchange trading, may reduce access to resources for a significant part of the market and appears to breach the principles of fair competition. Linking small processors’ participation in trading to the region in which their production facilities are located is inconsistent with the principles of economic freedom and may also constitute a restriction on competition. Excessive powers granted to the authorised body to determine the rules for participation in trading, the allocation of quotas, and the distribution of timber volumes between small and other processors. Without clearly defined criteria and procedures, this creates potential risks of abuse, selective regulation, and a lack of transparency. Granting preferential conditions to small processors may encourage the artificial splitting of businesses to avoid taxation or to gain access to benefits, which in turn could have negative consequences for the market as a whole. The adoption of Draft Law No. 13227 in its current form, according to the EBA’s experts, could lead to a number of negative outcomes, from the destabilisation of wood-processing enterprises and increased market monopolisation to reduced competitiveness and constraints on the development of small and medium-sized businesses in the regions. In light of the above, the European Business Association urges that the Draft Law be revised with the involvement of business representatives, professional associations, and public authorities. Only through open dialogue with all stakeholders will it be possible to develop a balanced version of Draft Law No. 13227 that meets the interests of both the state and the business community – similar to the approach taken during the development of Draft Law No. 4197-d On the Timber Market.

The European Business Association expresses concern regarding certain provisions of the updated draft law “On the Timber Market” No. 13227 dated 29 April 2025. Following a detailed analysis of the document, the EBA’s experts do not support its adoption in the current version.

According to the business community, the proposed changes may create unequal conditions for market participants and pose a number of risks to the functioning of the wood-processing industry.

In particular, the business community highlights concerns with the following provisions:

The classification of wood-processing enterprises into “small” and others, along with the introduction of restrictions on participation in certain stages of exchange trading, may reduce access to resources for a significant part of the market and appears to breach the principles of fair competition.
Linking small processors’ participation in trading to the region in which their production facilities are located is inconsistent with the principles of economic freedom and may also constitute a restriction on competition.
Excessive powers granted to the authorised body to determine the rules for participation in trading, the allocation of quotas, and the distribution of timber volumes between small and other processors. Without clearly defined criteria and procedures, this creates potential risks of abuse, selective regulation, and a lack of transparency.
Granting preferential conditions to small processors may encourage the artificial splitting of businesses to avoid taxation or to gain access to benefits, which in turn could have negative consequences for the market as a whole.

The adoption of Draft Law No. 13227 in its current form, according to the EBA’s experts, could lead to a number of negative outcomes, from the destabilisation of wood-processing enterprises and increased market monopolisation to reduced competitiveness and constraints on the development of small and medium-sized businesses in the regions.

In light of the above, the European Business Association urges that the Draft Law be revised with the involvement of business representatives, professional associations, and public authorities. Only through open dialogue with all stakeholders will it be possible to develop a balanced version of Draft Law No. 13227 that meets the interests of both the state and the business community – similar to the approach taken during the development of Draft Law No. 4197-d “On the Timber Market”.