The stability and stable functioning of the timber market largely depends on the parties' performance of contracts. The Ukrainian Energy Exchange pays great attention to this aspect. On the licensed trading platform, where permanent, competitive, open and accessible to everyone trades in raw wood are held, the monitoring of the execution of contracts is in place.
This process consists of systematic work on the mutual responsibility of the parties, consultations, monitoring of existing contracts, control of the shipment of sold wood to the buyer, and prompt resolution of disputed issues. UEB has also implemented an auxiliary tool - a module of analytical data on the execution of wood sales contracts.
According to the presented information, the overall level of fulfillment of contracts in this direction for the four decades of the III quarter of the current year as of August 12 is 46.1%, which indicates a positive trend.
Volyn region is the leader among the regions in terms of the level of contract fulfillment, the level of contract fulfillment is 50%. In Khmelnytskyi Oblast, the level of contract fulfillment is 48%, in Ivano-Frankivsk Oblast – 47%, in Zhytomyr Oblast – 46%, and in Kyiv Oblast the level of contract fulfillment is 45%.
Among the sellers, the largest amount of raw wood was sold by State Enterprise "Forests of Ukraine" - 1,059,768.158 m3. 487,918,698 m3 or 46.0% were actually shipped. Communal forest farms sold 3,722,883 m3 of resource, 1,845,429 m3 or 48.9% were actually shipped. Other sellers sold 3,770,659 m3 of raw materials, 2,097,793 m3 or 55.6% were actually shipped.
If we take the information from the UEB analytics module in the section of the Offices of the State Enterprise "Forests of Ukraine", the most wood was sold by the Metropolitan Forestry Office - 448,948,367 m3, 203,743,747 m3 were actually shipped, which is 45.4%. The Polissky Forestry Office sold 243,470,423 m3 of the resource, 122,836,659 m3 or 50.5% were actually shipped. The Podil Forest Office sold 212,659,369 m3 of raw materials, 89,733,451 m3 were actually shipped, which is 42.2%. The Carpathian Forestry Office sold 139,213,906 m3 of wood, actually shipped 66,357,717 m3 of the resource or 47.7%. The Central Forestry Office sold 15,476,093 m3 of raw materials, 5,247,124 m3 were actually shipped, which is 33.9%.
"The level of fulfillment of contracts of more than 46% is quite a good indicator at the end of the fourth decade of the third quarter. This was achieved thanks to the mutually coordinated work of the exchange with the participants of the auction. We are grateful to both sellers and buyers for their responsible attitude to the fulfillment of contracts. According to the results of the II quarter of 2024, the level of fulfillment of contracts at UEB is more than 90%. If the positive trend continues, we expect a similar result in the 3rd quarter of the current year," said Kostyantyn Shevchuk, Deputy General Director of UEB.
