Deputy Head of the Office of the President of Ukraine Rostyslav Shurma held a meeting with major participants in the wood processing and furniture industry market, as well as with the leadership of the State Enterprise “Forests of Ukraine”.
Rostyslav Shurma informed the meeting attendees about the measures being taken to eradicate corruption within the regional branches 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," explained the Deputy Head of the Presidential Office.
He also talked about the government's determination to bring order to the timber procurement sector.
"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.
Following the meeting, it was agreed to prepare a timber procurement plan for the State Enterprise "Forests of Ukraine" for the upcoming year, initiate a pilot project to introduce long-term contracts in the industry, as well as create a more flexible pricing system. Specifically, the parties agreed to explore the possibility of conducting Dutch auctions for timber sales.
The meeting participants agreed to explore technical capabilities to alter the assortment structure in response to market demands.
The Deputy Head of the President's Office emphasized that the goal is to maximize the efficiency of timber logging.
"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.
According to the Deputy Head of the President's Office, most market participants are positive about the changes that have taken place in the industry. However, the system of timber sales and logging needs further improvement.
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.