EBA calls for closing regulatory gaps in the timber market

29/ 04/ 2026

The European Business Association has addressed state authorities with proposals to eliminate regulatory gaps that allow timber to be sold outside open auctions. Currently, Ukrainian wood-processing enterprises are facing a critical shortage of raw materials. They are therefore ready to purchase larger volumes of timber under market conditions. At the same time, timber is included in the list of commodities that must be traded exclusively on organised commodity markets in accordance with Government Resolution No. 1433. Despite this, according to the Association’s experts, certain agroforestry enterprises continue to sell significant volumes of timber through direct contracts, i.e. outside organised commodity markets. As a result, hundreds of thousands of cubic metres of timber are sold annually outside transparent auctions, limiting equal and competitive access to raw materials for Ukrainian wood-processing companies. The business community emphasises that organised commodity markets have already proven their effectiveness as the most transparent mechanism for timber sales, due to the openness of procedures and equal access conditions for all participants. A shortage of raw materials in the required volumes complicates the ability of wood-processing enterprises to fulfil both export contracts and domestic obligations. It also leads to speculative and rapid price increases, making timber economically unviable for domestic producers. Given the sector’s significant production potential, increasing timber harvesting volumes would allow for more efficient utilisation of existing capacities and create conditions for investment in modernisation and expansion. Among the key proposals from the business community are: amendments to legislation to establish a clear control mechanism, introduction of liability for violations of the requirement to sell timber exclusively through organised exchange trading.

The European Business Association has addressed state authorities with proposals to eliminate regulatory gaps that allow timber to be sold outside open auctions.

Currently, Ukrainian wood-processing enterprises are facing a critical shortage of raw materials. They are therefore ready to purchase larger volumes of timber under market conditions.

At the same time, timber is included in the list of commodities that must be traded exclusively on organised commodity markets in accordance with Government Resolution No. 1433. Despite this, according to the Association’s experts, certain agroforestry enterprises continue to sell significant volumes of timber through direct contracts, i.e. outside organised commodity markets.

As a result, hundreds of thousands of cubic metres of timber are sold annually outside transparent auctions, limiting equal and competitive access to raw materials for Ukrainian wood-processing companies.

The business community emphasises that organised commodity markets have already proven their effectiveness as the most transparent mechanism for timber sales, due to the openness of procedures and equal access conditions for all participants.

A shortage of raw materials in the required volumes complicates the ability of wood-processing enterprises to fulfil both export contracts and domestic obligations. It also leads to speculative and rapid price increases, making timber economically unviable for domestic producers.

Given the sector’s significant production potential, increasing timber harvesting volumes would allow for more efficient utilisation of existing capacities and create conditions for investment in modernisation and expansion.

Among the key proposals from the business community are:

amendments to legislation to establish a clear control mechanism,
introduction of liability for violations of the requirement to sell timber exclusively through organised exchange trading.