The warehouses of the State Enterprise “Forests of Ukraine” are waiting for the shipment of 100 thousand cubic meters of round timber, and the business has increased its debt to UAH 500 million for the products already delivered, the press service of the state enterprise reported.
The state-owned enterprise reminded that during recent meetings with business, there was a demand to increase harvesting, as there is a shortage of resources.
“But the facts show otherwise. Since the beginning of April, the hotline of the State Enterprise “Forests of Ukraine” has not received a single complaint about the failure to fulfill timber supply contracts due to the fault of foresters (the only case concerns a conflict between entrepreneurs in the Carpathian region, which our employees became hostages). However, the volume of unselected products in the warehouses has increased significantly,” the statement said.
The Forests of Ukraine emphasized that there are a dozen companies among those who do not fulfill their obligations.
Business liability for breach of contract is now minimal. Buyers risk virtually nothing. With significant price fluctuations in the market, it is sometimes easier not to choose products under an open contract and re-enter the auction, the state enterprise explained.
However, due to the accumulation of timber products and reloading of warehouses, storage costs are increasing at the State Enterprise “Forests of Ukraine”. Late payment negatively affects the state of settlements with service providers (primarily for logging). The forced shutdown destabilizes the work of logging companies, and we lose scarce employees who are difficult to replace.
“Our company is working to solve the problem. We are increasing the share of long-term contracts. The situation is definitely normalizing. However, the issue of business responsibility must be taken into account in further discussions on increasing procurement. If we demand it, we must meet it,” the state-owned enterprise emphasized.
