The state enterprise "Forests of Ukraine" put up for a Dutch auction with a price reduction over a million cubic meters of wood that remained unsold at the auction in the fourth quarter.
Information about this was provided by the general director of the state company Yuri Bolokhovets.
The auction is planned to support the market in the difficult situation that has arisen due to the border blockade. Over three months, the losses of Forests of Ukraine branches from the border blockade exceeded UAH 1 billion.
“The year 2024 is off to a rough start. Uncertainty with borders and the holiday period in EU countries have led to a decrease in demand for wood. Many processors have suspended their activities,” Bolokhovets noted.
According to him, demand for wood is gradually recovering, but in some market segments the situation remains difficult.
“If the reform had not been implemented on time, many forestry enterprises would have been on the verge of bankruptcy already in January. Only thanks to subsidies from the central level, employees of all our branches receive their salaries on time. All branches have enough working capital for further work, and no one has stopped their activities ", said Bolokhovets.
According to him, Forests of Ukraine is ready to continue to support the market without reducing harvesting volumes.
At the same time, he added that, according to some experts, the prospects for the wood market for the current year are negative for both processors and sellers of raw materials.
