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ESR

2.2.4.3. Effective and transparent timber accounting procedures and timber market have been introduced

Problem solving:

2.2.4. Ineffective government regulation, which hinders the growth of honest businesses and fosters corrupt practices

Deadlines for all measures within ESR

01.03.2023 - 31.12.2025

Implementation of SACP measures within ESR

Total number of measures – 5

In progress

Implementation of SACP measures within the scope of the Problem by main main performers

Ministry of Environmental Protection and Natural Resources of Ukraine

State Forest Resources Agency of Ukraine

Summarized general information on Measures

№	Name of the measure	The main implementer	Co-implementors	Performance indicator	Monitoring results (latest)	Статус
1	2.2.4.3.1 Annually monitoring the performance of the unified state system of electronic accounting of timber of all permanent forest users in accordance with the resolution of the Cabinet of Ministers of Ukraine dated December 4, 2019, No. 1142 On Approval of the Procedure for Monitoring Domestic Consumption of Unprocessed Timber and Making Sure that the Volume of Domestic Consumption of Domestic Timber Is not Exceeded	Ministry of Environmental Protection and Natural Resources of Ukraine	Державне агентство лісових ресурсів України	The monitoring has been conducted.	There is progress in the implementation of the measure	In progress
2	2.2.4.3.2 Publicizing the annual report on the findings of the monitoring indicated in subclause 2.2.4.3.1 no later than February of the year immediately following the year in which monitoring was undertaken	Ministry of Environmental Protection and Natural Resources of Ukraine	Державне агентство лісових ресурсів України	The report on the monitoring findings has been publicized.	There is progress in the implementation of the measure	In progress
3	2.2.4.3.3 Annually monitoring and systematization of data on the sale of 100 percent of unprocessed timber at auctions and performance of the Law of Ukraine On Capital Markets and Organized Commodity Markets to the extent of the sale of timber through licensed commodity exchanges	Ministry of Environmental Protection and Natural Resources of Ukraine	Державне агентство лісових ресурсів України	100 percent of unprocessed timber is sold at auctions.	There is progress in the implementation of the measure	In progress
4	2.2.4.3.4 Publicizing the annual report on the findings of the monitoring and systematization of data indicated in subclause 2.2.4.3.3 no later than February of the year immediately following the year in which monitoring and data systematization was undertaken	Ministry of Environmental Protection and Natural Resources of Ukraine	Державне агентство лісових ресурсів України	The report on the monitoring findings has been publicized.	There is progress in the implementation of the measure	In progress
5	2.2.4.3.5 Supporting the consideration of the Draft Law of Ukraine On the Timber Market (registration number 4197-d dated September 10, 2021) in the Parliament of Ukraine (particularly if the President of Ukraine vetoes the draft law), which proposes, among other things: 1) instituting a mechanism whereby timber and specific timber products can be sold by forest owners and permanent forest users exclusively through electronic auctions or on the conditions of an offer, taking into account prior experience of forest management activities pertaining to procurement of timber; 2) defining the liability of buyers for failing to perform the conditions of a purchase and sale contract; 3) instituting the process for declaring processed timber, which will help producers, processors, sellers, and consumers to obtain clear proof of the legitimacy of timber harvesting; 4) mandating the reporting and publication of information about volumes, sale price, and buyers of timber and timber products by openly publishing it.	State Forest Resources Agency of Ukraine		The law has been signed by the President of Ukraine.	There is no progress in the implementation of the measure	In progress

Indicators of achievement of ESR

Total number of indicators – 4

Indicators fully achieved – 0

Partially achieved indicators – 0

Indicators with a score of 0% – 4

Summarized general information about Achievement Indicators

№	Indicators	Weight (%)
№	Indicators	Weight (%)	1	The unified state system of electronic accounting of timber has been by 100 percent of permanent forest users.	20%
2	100 percent of unprocessed timber is sold at auctions.	30%
3	The requirements of the Law of Ukraine On Capital Markets and Organized Commodity Markets pertaining to the sale of unprocessed timber at licensed commodity exchanges are being implemented.	20%
4	The Law of Ukraine On the Timber Market has taken effect, which: a) institutes mechanisms whereby timber and specific timber products can be sold by forest owners and permanent forest users exclusively through electronic auctions or on the conditions of an offer, taking into account prior experience of forest management activities pertaining to procurement of timber (10 percent); b) defines the liability of buyers for failing to perform the conditions of a purchase and sale contract (5 percent); c) institutes the process for declaring processed timber, which will help producers, processors, sellers, and consumers to obtain clear proof of the legitimacy of timber harvesting (5 percent); d) mandates the reporting and public accessibility of information about volumes, sale price, and buyers of timber and timber products by openly publishing it (10 percent).	30%

ESR