At the initiative of the Ministry of Energy and Environmental Protection, a pilot project on electronic auctions for the sale of unprocessed timber was launched on February 1, 2020, having been approved by Government Resolution No. 1178 of December 4, 2019.
From now on, forest owners will only sell raw wood at transparent electronic auctions.
The aforesaid resolution approved the Procedure for the implementation of the experimental project on conducting electronic auctions for the sale of raw timber lots, which stipulates that the trade in wood will take place through the Prozorro.Sales electronic trading system as well as other e-auctions. The citizens of Ukraine and resident entities, as well as foreign legal entities, are allowed to participate in the bids.
Moreover, the main features of the auctions have been regulated: they will be held to raise the price and in case the winner is not determined, a re-auction will be conducted with a reduction of the starting price, which cannot be less than the prime cost of timber. In addition, the winner of the auction is obliged to make a 10% prepayment under the concluded contract of sale.
It is important to note that the main objectives of the pilot project are as follows:
• ensuring an open and competitive timber sale procedure;
• elimination of non-transparent timber sales mechanisms;
• openness and availability of data on auction results, prices and purchasers, as well as the record of such information in the electronic timber accounting system;
• ensuring public control over the progress and results of open electronic auctions;
• full monitoring of the use of forest resources.