Cabinet proposes lifting ban on timber exports, introducing timber auctions

Ukraine's Cabinet of Ministers has proposed that parliament lifts a ban on timber exports and settles the market with the help of the introduction of timber auctions.

This is outlined in bill No. 4286 registered in parliament on March 22.

An explanatory note attached to the bill says the 10-year moratorium to export timber passed last year is not in line with Ukraine's liabilities under the Ukraine-EU Association Agreement and the conditions for providing international macro-financial assistance to the country.

The government said that the problem of the timber exports ban should be resolved from different points. The interagency working group headed by Deputy Economic Development and Trade Minister Natalia Mykolska has drawn up this legislative measure.

Along with lifting the moratorium the document envisages measures to combat the shadow timber market. This could be accomplished by the introduction of timber auctions. First timber will be offered at auctions to residents. Timber that will not be sold at the auctions will be offered to nonresidents.

Mykolska wrote on her Facebook page that the document was drawn up jointly with NGO Better Regulation Delivery Office (BRDO).

Residents will not be able to export timber bought at auctions. Timber will come to Ukrainian producers.