EBA experts express support for the draft law “On the Timber Market”

10/ 01/ 2025

On 8 January, representatives of the European Business Association participated in a roundtable discussion titled “Discussion of the Draft Law of Ukraine ‘On the Timber Market’ No. 4197D.” The event was held in accordance with the decision of the Verkhovna Rada Committee on Economic Development and included participation from Members of Parliament who are members of the Committee on Economic Development, representatives of the Government, business leaders, experts, and the media. The draft law, currently prepared for its second reading, establishes the legal, economic, and organisational framework for the sale of unprocessed timber and fuelwood on the timber market. It aims to meet the needs of market participants while promoting free and fair competition and ensuring the sustainable use of forest resources. EBA experts support the adoption of this draft law, as it incorporates key business proposals, including: The cascade principle for timber exchange auctions, which allows both upward and downward adjustments of the starting price, fostering effective and transparent competition. The extension of the moratorium on the export of unprocessed timber, enabling domestic processing companies to further invest in production, hire more workers, develop the labour market, and increase tax contributions. Priority purchasing rights for domestic processing companies at exchange auctions, which would protect national producers from potential market abuse by other participants. EBA experts have been actively involved in all activities related to the development of this draft law for several years. They remain hopeful for its approval in the near future, in a version that satisfies all market participants.

On 8 January, representatives of the European Business Association participated in a roundtable discussion titled “Discussion of the Draft Law of Ukraine ‘On the Timber Market’ No. 4197D.”

The event was held in accordance with the decision of the Verkhovna Rada Committee on Economic Development and included participation from Members of Parliament who are members of the Committee on Economic Development, representatives of the Government, business leaders, experts, and the media.

The draft law, currently prepared for its second reading, establishes the legal, economic, and organisational framework for the sale of unprocessed timber and fuelwood on the timber market. It aims to meet the needs of market participants while promoting free and fair competition and ensuring the sustainable use of forest resources.

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

The cascade principle for timber exchange auctions, which allows both upward and downward adjustments of the starting price, fostering effective and transparent competition.
The extension of the moratorium on the export of unprocessed timber, enabling domestic processing companies to further invest in production, hire more workers, develop the labour market, and increase tax contributions.
Priority purchasing rights for domestic processing companies at exchange auctions, which would protect national producers from potential market abuse by other participants.

EBA experts have been actively involved in all activities related to the development of this draft law for several years. They remain hopeful for its approval in the near future, in a version that satisfies all market participants.