VIDEO. How not to get lost in the wilds of the forest industry?

ISES together with the sociological group Rating and the CDM Ukraine conducted a study State of the woodworking industry in Ukraine and prospects of its development. The results of our work formed the basis of the related report of the qualitative sociological survey.

The main conclusions of the study that our analytical center presented on November 22 in the hotel “Kyiv” to the industry experts, market participants, MPs and representatives of executive authorities were announced by Yuriy Mironenko, the Board Member of the ISES. According to him, the Institute for Social & Economic Studies is staying aside of polemics between supporters of different points of view on the moratorium on the export timber: to leave it, or to cancel.

“We set ourselves the task to interview all stakeholders, – he said. – And the main conclusions are following. Firstly, the market expects the adoption of a draft law on the abolition of import duty on equipment that does not produce in Ukraine. Secondly, if we are talking about timber exports, than we need to allow its conduction by a “residual” principle, after the satisfaction of our producers. Thirdly, Ukraine should strengthen its own positions in communication with the EU and WTO, where seems to has a question about the legality of the introduction of the moratorium. In other words, we must clearly substantiate our national interests in connection with this decision and to emphasize its temporary nature”.

Another panelist, Viktor Galasyuk, the MP, emphasized the need for the development and implementation of the Roadmap of reforms in this area. In particular, he identified five priority measures that should be implemented:

  • To keep the moratorium on the export of round wood for another certain period of time;
  • To take control of the economic situation on the border to stop flows of contraband, where timber occupies a certain place;
  • The adoption of the law on the internal market of untreated wood that would liberalize this market and solve a number of topical issues;
  • To introduce investment incentives for producers;
  • The reform of the forestry sector, a clear distinction on the different activities.

Dmytro Serebryanskyi, the expert of the CMD-Ukraine, noted the need for de-shadowing the industry. He gave eloquent evidences that the often being practicing a substitution of commodity positions concerning the kind of forest that earlier, or now is being exported from Ukraine. “We analyzed Ukrainian official data and compared it with information from buyers of Ukrainian wood abroad, and observed a discrepancy in amounts and statistics. Sometimes the difference in amounts reaching hundreds of millions of dollars”, – Serebryanskyi said.

Ostap Yednak
, the MP, in his turn, focused on the topic of managing the system of domestic forestry. According to him, now is being formed a working group on reforming the industry with the participation of the representatives of the CMU and the Parliament. “If we manage to assemble it and finally implement the reform, including the deprivation of the State Forestry of some functions, accordingly, we will be able to resolve quickly the issue of certification and electronic circulation of timber, – Ostap Yednak said. – This introduced moratorium is just one stage of rehabilitation of this area. With that decision, we blocked a substantial in terms of size feeder of corruption. Now it is time to solve other problems”.

Participants in the discussion agreed to continue consultations to work out and propose their recommendations for the revision to the relevant authorities.