Timber harvesting plan, long-term contracts and Dutch auctions discussed by President's Office dpty head Shurma with industry

KYIV. Nov 30 (Interfax-Ukraine) – Prepare a timber harvesting plan for the State Enterprise Forests of Ukraine for 2024, begin a pilot project to introduce long-term agreements in the industry, and also provide for a more flexible pricing system, such agreements were reached by Deputy Head of the President’s Office Rostyslav Shurma at a meeting with the largest market participants of the woodworking and furniture industry and the management of the State Enterprise Forests of Ukraine.

“We are bringing order to the regions. In view of this, some heads of regional branches were detained by law enforcement agencies. I can assure you that these are not the last measures. We will rigorously purge corrupt individuals to make the industry transparent,” Shurma’s words are quoted in a statement from the press service of the president’s office.

It is indicated that, in particular, they agreed to consider the possibility of holding Dutch auctions for the sale of timber.

Shurma announced the state’s intention to restore order in the area of timber procurement.

“Here, it’s necessary to continue the reform of the sales mechanism and find an optimal approach that would suit both market participants and the state,” emphasized Rostyslav Shurma.

He also noted that the ultimate goal is to harvest timber as efficiently as possible.

“​​We have no intention of harvesting excessive timber that will go to waste. However, it’s also important for us not to create an artificial shortage that fuels corruption. Therefore, by the end of the year, it’s necessary to strike a balance and harvest as much raw material as the market requires. At the same time, the price of timber should be competitive, allowing operators to export processed products while maintaining an acceptable level of profitability in European Union countries,” clarified Rostyslav Shurma.

The parties decided to present a set of measures aimed at reducing the share of “black” and “gray” timber on the market and introduce uniform requirements for controlling timber circulation in the near future.

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