New rules of timber trading on domestic market approved

Some changes are concerned with the pricing of standing timber. In 2011 a starting price will be based only on the existing rates as of the date of issuing lot for the exchange trading. These rates must be approved by the Council of Ministers.  This year the timber price set by the Belarusian Commodity Exchange is not adjusted to the price changes in the European, Ukrainian and Russian markets. This measure has been taken in order to prevent considerable starting price rises and reductions in standing timber sales.

According to the decree, in 2011 purchasers will not need to place to the account of Belarusian Universal Commodity Exchange the coverage of 2% of the sum of order to buy standing timber. It will allow to facilitate the accessibility of exchange trading for all potential purchaser and lower their costs and, as a result, the demand for timber products may increase.

The changes in the ways of selling are also worth to be mentioned. In 2011 almost all the standing timber will be traded on the exchange, with the exception of customers assigned annually by the Council of Ministers that will purchase it at fixed price. At the same time, legal entities willing to sell harvested timber may either turn to the exchange or sell it by means of civil contracts. This approach has already allowed to solve the problems of delivery engineering more efficiently and to cover the demand of timber on the domestic market.

In 2011 as well as in 2010 it will be possible to sell round timber to the individuals without any restrictions and certificates, just on the basis of application containing the purpose of purchasing.

Some changes and additions have been made to the rules of selling and harvesting timber. They are aimed at increasing the timber sales and preventing from unreasonably high starting price during the exchange trades.  

This year organizations will be allowed to harvest timber while performing the following types of work:

  • Construction and maintaining of objects during exploitation of deposits and extraction of oil, peat and other minerals;
  • Laying of telecommunications and transmission facilities, road construction, etc. and maintaining their width according to the project;
  • Harvesting of wood and shrubbery at the glades of telecommunications and transmission facilities.

The adoption of the decree will favour more efficient use of forest resources in 2011-12 and will not cause reductions in forestry profits.

According to