Ukraine National Commission on Securities and Stock Market backs the Timber Market bill to preserve exchange-based timber trading

In an interview with Interfax-Ukraine, the Ukraine National Commission on Securities and Stock Market (NSSMC) chair Ruslan Magomedov said the Commission supports maintaining exchange mechanisms for timber trading and backs the draft law “On the Timber Market” in the version approved by the Parliamentary Committee on Economic Development for second reading, amid proposals to shift timber exchange trading functions to Prozorro.Sale. The NSSMC argued that organized commodity exchanges have delivered transparent markets for products including energy and timber, supported by clear rules, and that international standards treat timber as an exchange commodity. Magomedov highlighted anonymous order placement as a standard tool to reduce manipulation, alongside exchange controls for participant identification aligned with international requirements and Financial Action Task Force standards, and safeguards such as secure settlement, risk management, and guarantee collateral. He cited 2024 timber exchange trading volumes of more than UAH 31 billion, representing 8.5% of all exchange-traded goods, and noted that Prozorro.Sale could participate in exchange activities by obtaining the necessary licences. He also pointed to currency restrictions as a continuing obstacle for using foreign-currency guarantee collateral and said joint work with the National Bank of Ukraine is under way, while calling for further changes. Separately, the NSSMC chair said the timber trading model should be extended to the grain market and that work is already in progress, including recent discussions with the Minister of Agrarian Policy on expanding financial instruments in agriculture and promoting agricultural notes.