The first successful timber bidding under the new legislation was held by the Ukrainian Energy Exchange

On July 21, the first timber auctions in Ukraine took place in accordance with the new Law "On the Commodity Exchange" in accordance with the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Concerning the Simplification of Attraction of Investments and the Introduction of New Financial Instruments" dated 19.06.2020 No. 738-их. The licensed exchange, which opened this direction of trading under the new rules, was LLC Ukrainian Energy Exchange.

The amended rules for organizing trading provide that all participants (both organizers-forest users and potential investors-woodworkers) should be accreditate, to obtain the status of a non-permanent member of the exchange in accordance with the requirements of the Regulations by concluding a lease agreement for an exchange place with a permanent member of the commodity exchange.

And only after that the organizers will be able to put up lots for sale, and buyers can apply for participation in the auctions.

“The most difficult thing in the new conditions was to organize the first trades. After all, for the next auctions, already accredited participants will only submit applications, and only new ones will be accredited. More than a hundred woodworkers and dozens of forest users had to be accredited for the first tenders. However, experienced managers who have been organizing exchange trading in untreated timber on the Ukrainian Energy Exchange for years have done an excellent job and within a limited time frame, within three weeks (from the moment the exchange obtained a license), they were able to organize full-fledged and successful trading.” - summed up Konstantin Shevchuk, the Deputy CEO of LLC UEEX.

165 lots were put up for the first auction under the new legislation, of which 97% were successfully sold. With a total starting price of UAH 22 million, foresters budgets received more than UAH 34.5 million. And these are additional funds that will be used for afforestation.

“The first auctions under the new rules proved that we are 100% ready to work in the changed conditions. Therefore, we invite forest users and woodworkers from all over Ukraine to participate in our tenders, to get an accreditation and participate in auctions. We remind you that electronic auctions take place online on the Internet, therefore they are available and open to everyone,” - invites Konstantin Shevchuk.