Many years of work led to the fact that Ukraine, which has great potential in forest processing, is now only beginning to develop this sector of the economy
Forests occupy 17% of the territory of Ukraine, as an important component of both the Ukrainian official economy. However, until recently, a large part of harvested wood was exported even without the slightest processing, they can also process it, but most often the raw wood is sold at auctions to private woodworking enterprises in both Ukraine and abroad.
The uncontrolled export of timber led to the fact that in November 2015 the Verkhovna Rada adopted a law on the moratorium on the sale of sawn timber of oak, ash, alder, fir and perch abroad. At the end of this year, a similar ban will be imposed on the export of roundwood. It is believed that such a decision should increase the supply of unprocessed timber in Ukraine, which reduces the deficit.
At the same time, market players note that the application of a moratorium on deforestation has had a positive impact on their business.
Therefore, Dmitry Artiumchuk, president of the Ukrainian Association of Woodworking Enterprises, claims that after the application of the ban on the market, raw materials became 20% more. He says: “Over seven months of 2016, we have 100 thousand cubic meters of wood more than last year. Once the moratorium is applied, a lot of investment went to Ukraine.”
The biggest problem for the industry, in his opinion, is precisely the shortage of raw materials, which will increase after the launch of new large timber manufacturers. In particular, oak forests may not be sufficient, which will adversely affect small enterprises.
If the processors were satisfied with these changes, many industrial enterprises from western Ukraine got a large part of the profit specifically from the supply of timber to foreign markets.