Ukrainian Parliament's economic committee proposes separate exchange trading system for small wood processors
A separate system of timber exchange trading for small wood processors has been proposed to the Verkhovna Rada by Dmytro Natalukha, chairman of the Parliamentary Committee on Economic Development, together with his committee colleagues, in the revised draft Law on the Timber Market (No. 13227-d), which they registered in September.
"The draft law provides for two distinct models of exchange trading: one for all woodworking enterprises, and another specifically for small wood processors – defined as companies with no more than 50 employees and annual processing volumes of up to 5,000 cubic meters of timber," Vox Ukraine wrote in its review of significant draft laws.
Both models consist of four stages: primary trading (price increase), repeated primary trading (price reduction), additional trading (price increase), and repeated additional trading (price reduction). Participation in the first two stages of general trading is limited to woodworking enterprises included in the official Register of Wood Processors. To be listed, a company must submit an annual declaration (a new type of document) with complete information on its activities, including timber procurement, processing, and sales volumes; number of employees; product types; equipment; production addresses; and related details.
At the additional and repeated additional stages, other business entities may participate if they meet general requirements: registered in Ukraine, no tax arrears, and not under sanctions.
According to Vox Ukraine experts, for small wood processors, participation in the first two trading stages is restricted to enterprises whose production facilities and equipment are located in the same region where the timber is harvested. In the additional and repeated additional stages, regional restrictions are lifted, allowing small processors from anywhere in Ukraine to participate. Inclusion in the Register of Small Wood Processors, as with larger enterprises, is based on filing a declaration of activity.
Trading participants must pay a guarantee deposit. The amount is set by the exchange (trading organizer), but cannot exceed 1.5% of the lot's starting price, or UAH 1.5 million.
All data – including applications, contracts, participant information, and digital identifiers of timber lots – will be recorded in the Unified Electronic Forestry Portal, administered by the State Forestry Agency. Declarations of wood-processing activity will also be filed via this portal. The system enables the state to track the origin, movement, and final use of timber.
Experts noted that the bill enshrines a ban on exports of unprocessed timber (UCC FEA code 4403) and fuelwood (code 4401) during martial law and for five years afterward. This ban had been one of the main points of contention in Ukraine's relations with the EU before the full-scale war, and under a court ruling, Ukraine had been obliged to lift the moratorium.