Government bans export of unprocessed wood: how it will affect business
1 November 05:18
The Cabinet of Ministers of Ukraine has decided to temporarily ban the export of unprocessed timber. The ban will be in effect until the end of the year and actually means the introduction of a zero quota for the export of timber abroad. This was announced by the Prime Minister of Ukraine Yulia Svyrydenko on her Telegram channel, "Komersant Ukrainian" reports
This decision was made after a government trip to Rivne region and meetings with local entrepreneurs who reported a shortage of timber and the risk of stopping the woodworking industry.
Why the ban was introduced
Logging volumes in Ukraine have dropped significantly since the start of the full-scale invasion. Some of the forests are located in the temporarily occupied territories or have been damaged as a result of hostilities. As a result, woodworking companies are forced to operate at minimum capacity or stop production.
In addition, the army actively uses wood to equip positions, dugouts, fortifications and fortifications.
For many rural communities, wood is the only available resource for winter heating. The export ban should ensure a stable supply of fuel to the domestic market and protect the population from firewood shortages.
What does the Government’s decision envisage?
According to the decision, timber exports will be subject to licensing, and a zero quota will be set by the end of the year. This effectively means a complete temporary ban on the export of unprocessed timber abroad.
This forced but necessary step will help to:
- preserve resources for domestic needs;
- support the work of Ukrainian wood processing companies;
- provide the population with firewood in winter;
- reduce the environmental impact on forests.
How it will affect business
Woodworking companies will receive more raw materials.
The export ban means that wood will remain in Ukraine. This will allow companies to operate at full capacity and avoid downtime.
How the war has affected Ukrainian forests
Russia’s full-scale invasion has caused significant damage to Ukraine’s forests.
Some forests are located in the temporarily occupied territories.
Thousands of hectares have been affected by fires, explosions and destruction.
Due to mining, forestry enterprises cannot carry out felling or restoration work.
In such circumstances, timber exports would put additional pressure on natural resources, so the restrictions are a logical environmental step.
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