According to the results of the auction, the state-owned enterprise “Forests of Ukraine” contracted 99% of the volume of round timber and firewood for the fourth quarter of this year, the press service of the SE reported on Telegram.
“Demand for wood continues to grow. (…) The average price of roundwood rose to UAH 6,800/cubic meter (in the third quarter — UAH 5,700/cubic meter, in the second — UAH 5,400/cubic meter). The average price of firewood for industrial use is UAH 2,300 per cubic meter (in the third quarter — UAH 1,800 per cubic meter, in the second — UAH 1,500 per cubic meter),” the report says.
As noted, the starting prices of the auctions were lower than the sales prices in the third quarter. The state-owned enterprise “Forests of Ukraine” tried to restrain price dynamics, but in conditions of free competition, the final prices are determined exclusively by demand.
To increase supply, Lisy Ukrainy put all available resources up for auction (except for firewood for the population, the social sector, and resources for the Armed Forces of Ukraine). A small percentage of products that buyers rejected were immediately put up for additional auction. Products for which there was no demand or which had a high price were put up for Dutch auction to determine the market price.
According to the state-owned enterprise, 1.5 million cubic meters of wood in the second half of the year was supplied to customers under forward contracts at a fixed price, meaning that processors were able to avoid the risk of rising product costs in advance.
In addition, during July-September, timber harvesting consistently exceeded 1 million cubic meters.
“As for increasing harvesting, this issue requires comprehensive solutions, most of which are currently beyond the competence of foresters,” said Forests of Ukraine, adding that the volume of main use logging over the past three years has remained virtually unchanged, within the range of 5.6-5.7 million cubic meters.
In January-June 2025, the state-owned enterprise “Forests of Ukraine” signed over 800 contracts through the Prozorro system for the harvesting of 5 million cubic meters of timber worth UAH 2.1 billion, the company’s press service reported on Telegram.
“Harvesting services account for the largest share of the company’s purchases. Traditionally, they were purchased under direct contracts. Last year, Forests of Ukraine began creating a transparent, open, and civilized timber harvesting market,” the state-owned company emphasized.
Lisy Ukrainy reminded that a number of entrepreneurs who were not used to working openly and did not accept the mechanism of public tenders resisted the reforms, but the procurement was successfully transferred to Prozorro. The state-owned enterprise demonstrated to businesses the advantages of concluding agreements through transparent, competitive auctions.
“The result is that thousands of workers are officially employed, contractors pay taxes to local budgets. There are more opportunities to monitor compliance with safety and working conditions. The opportunities for manipulation have been minimized—all contracts are published,” emphasized Lesy Ukrainy, adding that the formation of an efficient and competitive timber market is a guarantee that the company will fulfill its obligations to wood processors regarding timely deliveries of timber.
Lesy Ukrainy State Enterprise set another record and sold UAH 8.9 billion worth of unprocessed timber in April-June, according to the company’s CEO Yuriy Bolokhovets on his Facebook page.
“Lesy Ukrainy increased revenues to the state and local budgets by 40%! Tax payments in the first half of the year grew by more than UAH 1.7 billion compared to the same period in 2024,” he emphasized.
Bolochovets noted that the state-owned enterprise uses its after-tax profits to purchase new firefighting equipment (10 large fire trucks are planned in the near future), developing modern seed centers and infrastructure (forest roads, recreational areas, etc.), restoring forestry in de-occupied territories, and mechanizing harvesting (harvesters, forwarders, tractors, etc.).
He highly praised the effect of the six-month forward contracts, under which buyers selected all the timber, which made it possible to achieve 101% of the planned volume.
“Thanks to forward contracts, wood processors can reserve the volume of raw materials they need and fix the price. The company also benefits. The guarantee deposit, which is returned only after 97% of the contract has been fulfilled, motivates buyers to select the entire contracted volume of products. Next year, the share of forward contracts will be increased, with annual contracts planned,” he wrote.
In addition, Lesy Ukrainy has already shipped more than 95% of timber under quarterly contracts for the second quarter. Most of the non-fulfillments are the fault of buyers who either refuse to accept the goods or fail to pay on time.
The state-owned enterprise noted that it pursues a flexible policy on mutual settlements, realizing that producers may experience difficulties with working capital, as they do not immediately receive payment for the timber products they manufacture. However, the enterprise sometimes resorts to suspending deliveries until the buyer settles the debt, which to a certain extent affects the contract fulfillment rate.
“Overall, the situation on the timber market is still balanced. The rapid rise in the euro exchange rate has significantly strengthened the position of Ukrainian exporters, so the forecasts for the second half of the year are more than optimistic,” summarized the CEO of Lesy Ukrainy.
KYIV. July 2, 2025 – In the first half of 2025, the fulfillment rate of forward contracts on the Ukrainian Universal Exchange (UUE) reached 97.2%, which confirms the effectiveness of this instrument in the timber market. According to the exchange, out of 351 thousand cubic meters of unprocessed timber stipulated in the contracts, 341.16 thousand cubic meters were actually delivered.
The contracts were signed at the end of 2024 with the delivery period from January to June 2025. In total, sales were made under 55 forward agreements in more than ten regions of Ukraine.
According to Serhiy Gladkyi, Director of the Ukrainian Wholesale Exchange, such results demonstrate high discipline of bidders and trust in exchange mechanisms:
“Forward contracts allow market participants to plan logistics, production and finances six months in advance. The high level of execution confirms the effectiveness of long-term contracts,” he emphasized.
A key element of the system is the guarantee fee, which ensures the financial responsibility of the parties and minimizes the risks of default.
According to the exchange, this level of fulfillment is also evidence of the maturity of the market and the effectiveness of exchange instruments in the timber segment.
Forward contracts, Sergiy Gladkyy, TIMBER, UICE, Ukrainian Universal Exchange
Since the beginning of the year, exports of wood and wood products from Ukraine amounted to 1.42 million tons worth $671.8 million. Compared to the same period in 2024, when 1.34 million tons were exported for $593.9 million, the volume of exports increased by 81,700 tons, or 6%. At the same time, in monetary terms, there was an increase of $77.9 million, or 13%.
Pine products account for the largest share, 68.6%, indicating high demand for this type of wood on foreign markets. Spruce timber ranks second with 19%, followed by oak with 6.6% of the total volume.
At the same time, since the beginning of the year, customs authorities have detected violations amounting to over UAH 31.4 million.
The European Commission has classified Russia and Belarus as countries with the highest risk level in accordance with the EU Regulation on the prevention of deforestation and forest degradation (EUDR), which is an additional safeguard against their forest products entering the European market, said Viktor Smal, head of the State Forestry Agency of Ukraine.
“The European Commission has published an updated list of countries classified according to risk level in accordance with the EUDR. Ukraine, like leading European timber producers, has been given low-risk status. This creates conditions for investors to come to Ukraine and attract investment, opening up new opportunities for Ukrainian exporters of furniture and other forest products, facilitating their entry into the European market. At the same time, Russia and Belarus are among the high-risk countries, which makes it even more difficult for their products to enter the EU. We are working to ensure that countries involved in gray import schemes for Russian timber are also included in the list of high-risk suppliers,” Smal emphasized.
He noted that despite the war, thanks to digitalization and reforms in the forestry sector, Ukraine has managed to obtain the status of a low-risk exporter on a par with Germany, Latvia, Finland, and Poland.
“This is the result of our systemic reforms and digital transformation in the forestry sector, in particular the introduction of such tools as e-logging tickets, e-certificates of origin, and e-TTN with photo documentation,” said the head of the State Forestry Agency.
As reported, in 2022, the EU imposed sanctions on imports of Russian timber, pulp, paper, other wood products, and furniture. This applies not only to imports from Russia but also to the trading of Russian timber through third countries.
According to an investigation by Earthsight, European furniture manufacturers have purchased more than 500,000 cubic meters of Russian-made birch plywood during the war, circumventing sanctions.
World Forest ID experts found that 46% of birch products supplied to the UK and labeled as originating from Ukraine, Poland, Estonia, and Latvia were actually produced in Belarus and Russia.
The EUDR, which will come into force for medium and large companies on January 1, 2026, stipulates that products imported into the EU must not contribute to deforestation or forest degradation. Countries are classified according to risk level — low, standard, and high. Low risk status simplifies exports, reduces the regulatory burden, and enhances the competitiveness of Ukrainian producers in the EU market.
https://interfax.com.ua/news/general/1074828.html
