The Ukrainian timber market has undergone a rapid transformation in recent years, from manual management and informal arrangements to transparent and competitive rules of the game. At the same time, further development of the industry is impossible without comprehensive legislative solutions, including the adoption of the Law on Timber Market.
This was stated by Kostiantyn Shevchuk, Deputy CEO of the Ukrainian Energy Exchange, commenting on the current state and challenges of the industry in his blog for Ekonomichna Pravda.
According to him, the introduction of wood trading in 2021 was a turning point for the market. The transition to selling the resource through licensed commodity exchanges laid the foundation for open competition, transparent pricing, and equal access conditions for business. At the same time, the processes were digitized: electronic trading, integration with state registries, and reduction of the human factor significantly reduced the risks of abuse.
Even a full-scale war did not stop these processes. In 2022-2024, the exchange infrastructure became more mature: tools for monitoring contract execution, price analytics, forward transactions, and bank guarantees were introduced. Today, timber exchange trading in Ukraine is a comprehensive system that is close to European standards.
At the same time, the market is operating in the face of an objective reduction in harvesting. Mined areas, staff shortages, logistical and energy problems directly affect the availability of the resource. According to the expert, the increase in competition and prices is a result of limited supply, not a violation of market mechanisms.
The industry pays special attention to the issue of raw wood exports and preparations for the implementation of the European EUDR regulation, which sets new requirements for traceability of wood origin. Ukraine has already begun systematic adaptation to these changes at the level of the state, business and exchange infrastructure, which is critical to maintaining its export potential.
The key next step for the market, according to the Ukrainian Energy Exchange, should be the adoption of the Law on the Timber Market. The document is intended to establish uniform rules of the game, increase predictability for business, protect national producers and integrate the industry into the European economic space.
– The market has already proven its ability to change even in the most difficult conditions. Now these changes should be enshrined in law to ensure sustainable development of the industry, jobs and added value for the country’s economy, – summarized Kostiantyn Shevchuk.
