Business Calls on the Verkhovna Rada to Adopt the Draft Law "On Timber Market"

The European Business Association addressed the President of Ukraine, the Verkhovna Rada of Ukraine, and the relevant ministries with a letter in support of Draft Law #4197-d "On the Timber Market".

This draft law is a European integration draft law that defines the legal, economic and organizational principles of the timber market. In particular, the sale of raw timber and fuelwood to meet the needs of market participants on the principles of free and fair competition and sustainable use of forest resources.

The EBA experts support the adoption of the draft law, as it takes into account the main proposals of the business.

The principle of cascading timber auctions. According to this principle, the starting price can be increased or decreased, which promotes transparent competition.

Timber will be sold in the following stages:

• Main bidding to increase the price (available exclusively to processing companies);
• Repeated main bidding of the remaining timber to reduce the price (also available exclusively to processing enterprises);
• Additional auctions (available to all business entities that carry out operations with wood);
• Repeated additional bidding (available to all business entities).

Granting domestic woodprocessing companies the right to purchase timber at exchange auctions as a matter ofpriority. This will protect domestic producers from possible abuse by other market participants.

Extension of the moratorium on the export of unprocessed timber.This will allow domestic processing companies to invest more in their own production, hire more employees, developing the labor market, and increase the amount of taxes paid.

Additionally, the draft law regulates the powers of government agencies to regulate the market, calculate the starting price for timber, the functioning of the relevant state register, requirements for market participants, and the alienation of timber for the needs of the armed forces and for social needs.

The EBA experts are grateful for the consideration of business proposals and are convinced that the adoption of the draft law in its current version will ensure effective regulation of the timber market, taking into account the needs of both business and the state.