Wood in the rough market Ukraine

Earlier Report Observations

The Ukrainian wood in the rough market entered a period of decline starting in 2018, when the introduction of an 18% VAT rate on pulpwood logs increased the tax burden for producers. This policy encouraged a shift toward further processing and supply chain optimization, contributing to a drop in market volume from 12.8 million tons in 2018 to 11.6 million tons in 2019.

Market contraction continued through 2020 and 2021, exacerbated by COVID-19 supply chain disruptions that affected raw material availability. Concurrently, preparations for the EU Deforestation Regulation (EUDR) raised traceability and certification requirements, increasing compliance costs for exporters. Enhanced state oversight of harvesting and new timber labeling rules further complicated access to EU markets, holding volume around 10.9 million tons in both years.

The full implementation of EUDR in 2022 mandated proof of legal timber origin, tightening controls. A parallel policy to limit exports of unprocessed wood aimed to stimulate domestic processing. Market volume fell to 10.0 million tons in 2022 and stabilized at 9.9 million tons in 2023, completing a five-year reduction of nearly 3 million tons.

Production wood in the rough Ukraine

In kind, 2017-2020, K t

Top producers of wood in the rough, 2017-2020

World map of production of wood in the rough, 2017-2020

Ukraine's production of wood in the rough has declined for the second year in a row. In 2020, the country produced 10 902 thousand tons, which represents a 6.2% decrease compared to the previous year. Looking at the period from 2017 to 2020, production fell by 11.3%, averaging an annual decline of 3.9%. The highest production level was recorded in 2018 at 12 802 thousand tons. The most significant drop occurred in 2019 with a 9.2% decrease, while the largest increase was seen in 2018 at 4.1%.

Annual dynamics of production Ukraine in kind, 2017-2020, K t

Exports wood in the rough to Ukraine

Exports in kind, t

The export market for wood in the rough showed considerable volatility during this period. Exports reached their lowest point in 2019 at just 23 tons, then rebounded sharply to 92 tons in 2020, marking a substantial 295.9% increase over the previous year. The peak export volume was recorded in 2017, creating a dramatic 459-fold difference between the high and low points. The most significant decline occurred in 2019 with a 99.2% drop.

Annual dynamics of product's exports to Ukraine in kind, 2017-2020, t

Between 2017 and 2020, Turkey and China remained Ukraine's primary markets for wood in the rough exports, together accounting for 85.1% of total export volume. The remaining 14.9% was distributed among various other countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports to Ukraine in kind, 2017-2020

Exports in value, K $ US

Export values displayed irregular patterns, reflecting a volatile market environment. The lowest value was recorded in 2019 at 8 thousand US dollars, while the peak occurred in 2017, creating a 108-fold difference between these extremes. In 2020, Ukraine exported 16 thousand US dollars worth of wood in the rough, representing a 96.5% increase compared to the previous year. The most significant decline took place in 2019 with a 95.7% drop.

Annual dynamics of product's exports to Ukraine in value, 2017-2020, K $ US

Throughout the 2017-2020 period, Turkey and China dominated Ukraine's wood in the rough exports in value terms, together representing 86.9% of total export revenue. The remaining 13.1% was spread across multiple other markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports to Ukraine in value, 2017-2020

Imports wood in the rough in Ukraine

Imports in kind, t

Import volumes exhibited considerable volatility during these years. The lowest point was recorded in 2019 at 4 340 tons, while imports peaked in 2018 at 25 468 tons, creating a 5.9-fold difference between these extremes. In 2020, Ukraine imported 6 856 tons of wood in the rough, representing a significant 58.0% increase over the previous year. The most substantial decline occurred in 2019 with an 83.0% drop, while the largest increase was recorded in 2018 at 154.6%.

Annual dynamics of product's imports in Ukraine in kind, 2017-2020, t

From 2017 to 2020, Russia dominated Ukraine's wood in the rough imports, accounting for 92.2% of total import volume. The remaining 7.8% was distributed among other markets.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports in Ukraine in kind, 2017-2020

Imports in value, K $ US

Import values showed irregular fluctuations, indicating a volatile market environment. The lowest value was recorded in 2019 at 977 thousand US dollars, while imports reached their peak in 2018 at 3 232 thousand US dollars, creating a 3.3-fold difference between these years. In 2020, Ukraine imported 1 166 thousand US dollars worth of wood in the rough, reflecting a strong 19.4% increase over the previous year. The most significant decline occurred in 2019 with a 69.8% drop, while the largest increase was recorded in 2018 at 217.3%.

Annual dynamics of product's imports in Ukraine in value, 2017-2020, K $ US

During the 2017-2020 period, Russia accounted for the majority of Ukraine's wood in the rough imports in value terms, representing 77.5% of total import expenditure. The remaining 22.5% was distributed across various other markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports in Ukraine in value, 2017-2020