Starting in 2026, the State Enterprise "Forests of Ukraine" will introduce a new system of annual timber purchase contracts, which will be a significant step towards stabilizing the timber market and maintaining stable conditions for timber processing companies. This initiative was presented by the company's CEO Yuriy Bolokhovets at the Forest Resources: State and Prospects forum.
The new approach involves the introduction of fixed prices in annual contracts, which will reduce the risks associated with price fluctuations in the timber market. In the context of frequent and unpredictable price changes, this solution will become a reliable tool for planning and ensuring a stable supply of raw materials for processors. Thus, annual contracts will help companies plan their expenses in advance and avoid significant raw material costs during periods of sharp price fluctuations.
Prior to the introduction of annual contracts, SFE "Forests of Ukraine" has made a long way to create a transparent and competitive timber market. This process is an integral part of the state's overall strategy to reform and modernize the forestry industry. Annual contracts will be a logical continuation of this work, helping to create conditions under which timber will be bought and sold on fair and transparent terms.
The introduction of such a system is also expected to reduce the shadow segment of the market. This goal will be achieved by increasing the level of trust in the market on the part of both buyers and sellers. Annual contracts will limit the possibility of unfair manipulation of prices and terms of supply by creating additional guarantees for each party to the contract.
The Deputy Minister of the Ministry of Ecology emphasized the importance of this step for the development of Ukraine's forestry industry, noting that such an initiative will allow Ukrainian enterprises to develop steadily and in a planned manner, which will have a positive impact on the entire economy.
Thus, the State Enterprise "Forests of Ukraine" not only maintains the stability of its own operations, but also makes a significant contribution to the overall development of the economic environment, providing the forestry sector with new tools and opportunities for growth. The introduction of annual contracts will be an important step towards the sustainable and transparent development of the forestry industry in Ukraine.
