{"id":88682,"date":"2025-03-20T07:26:17","date_gmt":"2025-03-20T07:26:17","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/what-could-the-reconstruction-of-ukraine-mean-for-the-timber-industry\/"},"modified":"2025-09-19T09:03:54","modified_gmt":"2025-09-19T09:03:54","slug":"what-could-the-reconstruction-of-ukraine-mean-for-the-timber-industry","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/what-could-the-reconstruction-of-ukraine-mean-for-the-timber-industry\/","title":{"rendered":"What could the reconstruction of Ukraine mean for the timber industry?"},"content":{"rendered":"<p><span id=\"more-37713\"><\/span>Three forest industry experts from Finland predict the possible situation in Ukraine after the end of the war - if and when it comes.<\/p>\n<p>There have been speculations that Russia's aggressive war against Ukraine could end within a year.\u00a0Forest.fi\u00a0asked three industry professionals to consider what a peace treaty could mean for the European Union's forest sector.<\/p>\n<p>Both Maarit\u00a0Lindstr\u00f6m ,\u00a0Director and Chief Economist of the Finnish Forest Industry Federation ,\u00a0Marjo\u00a0Maidell, Forest Economist\u00a0at Pellervo Economic Research PTT, and Marko\u00a0M\u00e4ki\u00a0-Hakola, Forest Director of the Central Union of Agricultural Producers and Forest Owners (MTK),\u00a0emphasized the uncertainty of the situation and the possibility of rapid change. The talks took place in the second week of March 2025.<\/p>\n<p><strong>Marjo Maidel<\/strong><\/p>\n<p>The reconstruction of Ukraine will require significant, even enormous, investments. Once this process begins, it will lead to a clear increase in demand for wood for construction purposes. It is possible, for example, that some of the terms of the peace treaty will affect Finnish timber demand.<\/p>\n<p>What about sanctions against Russia? When new sanctions were imposed in 2022, imports of raw wood from Russia to Finland were suspended. This reduced the availability of wood and affected the timber market not only in Finland, but also in other countries around the Baltic Sea.<\/p>\n<p>Dialogue between the US and Russia, or even reaching peace, will not automatically mean that Europe will lift sanctions. If the peace conditions are not favorable for lifting sanctions, a common EU position will be important.<\/p>\n<p>If at some point the sanctions are partially or fully lifted, timber imports from Russia to Finland could resume, however, we cannot assume that imports will reach the level they were before the sanctions were imposed.<\/p>\n<p>Markets have evolved during the war years. For example, the EU Deforestation Regulation, which will come into force next year, imposes new requirements on imports. Even if sanctions were lifted, there are other factors involved in importing raw wood. Setting up a timber procurement organisation takes time, and building trust will certainly take even longer.<\/p>\n<p>When sanctions were imposed in 2022, trade flows in forest products took new directions. Imports of sawn timber and plywood from Russia and Belarus, which had met a significant part of the demand for these products in EU Member States, ended. If sanctions are eventually lifted, imports of Russian sawn timber and plywood to the EU could resume, but it is unlikely that they will even approach pre-war levels.<\/p>\n<p><strong>Marit Lindstr\u00f6m<\/strong><\/p>\n<p>Ukraine was granted EU candidate country status on 23 June 2023. At the same time, Ukraine received a list of reforms that it will have to implement in order to maintain this status. The implementation of reforms will be an indicator of Ukraine's willingness and ability to become an EU member state.<\/p>\n<p>It is understandable that after the end of the war, Ukraine will face several problematic situations, for example, the country has been weakened by corruption, the country's infrastructure needs to be improved, demining needs to be carried out, and Ukraine itself must actively participate in all processes, of course, with the support of the EU.<\/p>\n<p>When it comes to the forest sector, Finland and other EU Member States can offer expertise, support and training. Important issues include administrative reform, the use of forest resource data, forest inventory, forest restoration and use, the construction of logging roads and the prevention of forest fires. These are all important issues for attracting investment to the country.<\/p>\n<p>Western Ukraine's forest resources provide potential for the development of the country's forest sector and investment in the sector. Currently, the export of raw wood from Ukraine is prohibited, which should be taken into account in the accession process criteria. Lifting this ban would be an important step in the \"liberalization\" of trade and the development of exports - and if there is a desire, Finnish companies can help the development of the wood industry in Ukraine.<\/p>\n<p>The aim of the ban on the export of raw wood was to increase local processing. From the perspective of Finnish companies, allowing the export of raw wood would generate revenue. It would also provide a basis for investment preparation and market exploration, which are prerequisites for investments in the mechanical and chemical forest industry.<\/p>\n<p>The exploitation of Ukraine's forest resources could have a positive impact on the tense situation in the European timber market caused by the war initiated by Russia. The creation of infrastructure and the exploitation of forest resources are necessary for Ukraine to expect economic growth based on the wood processing industry.<\/p>\n<p>During the war, some European Union member states, including Germany, Poland, Sweden, Denmark, and Finland, were active in Ukraine. They explored the country's market from a reconstruction perspective.<\/p>\n<p>Estimates of the cost of rebuilding Ukraine vary, but one thing is certain: it will exceed 500 billion euros. The reconstruction will certainly increase the demand for construction materials, such as lumber and CLT\/LVL products. Ukraine aims to reconstruct the country according to the principle of \u201cBuild Back Better\u201d, which can provide new opportunities for ecological wood construction and the replacement of concrete with wood.<\/p>\n<p>Financing will be available from international bodies, such as the European Bank for Reconstruction and Development and the European Union. In the case of Finland, financial support could be sought from the export credit agency Finnvera and the development financier Finnfund. It should be emphasized that the general attitude at present is cautious and reserved. Any activity in a conflict zone is associated with significant risks, which companies must carefully assess.<\/p>\n<p>The uncertainty is compounded by the global political situation, fueled by US President Donald Trump's second term, such as the disruption of international trade flows, which is drastically reducing economic growth. Geopolitical tensions are making it more difficult for companies to make decisions.<\/p>\n<p>During the war initiated by Russia, Finland has exported forest products to Ukraine. The export value in 2023 was 47.3 million euros. The largest product group was cardboard and paper.<\/p>\n<p>Despite a 30% decline in 2022, the Ukrainian economy has been growing since the end of 2022. It should be noted that Russia has destroyed half of Ukraine's energy production capacity, which has caused severe inflation in the country. We can hardly expect the economy to quickly reach its previous volume. Labor shortages have increased, and since January 2022, Ukraine has lost about a quarter of its labor force. At current growth rates of about 4%, Ukraine's GDP would reach pre-war levels in 2030. Rebuilding the country will not be easy.<\/p>\n<p>What about sanctions against Russia? If sanctions are lifted, Russian lumber and plywood products could enter the market again. Before the war, 1.3 million cubic meters of birch plywood were imported from Russia to Europe annually, which, if sanctions are lifted, would undoubtedly affect the market and trade flows in Europe.<\/p>\n<p><strong>Marco M\u0113ki-Hakola<\/strong><\/p>\n<p>If the peace treaty provides stability and faith in the future, the forest sector in Ukraine could develop. It would be useful for European Union decision-makers to invest in creating favorable conditions for the bioeconomy. The country's reconstruction will be a serious stimulus for the bioeconomy, but it should be noted that European relations with Russia will still be tense. I believe that the European Union will become more united and will invest in promoting independence, and another significant factor contributing to this is the United States. In other words, both from the perspective of the forest sector and other sectors, the situation will be affected by the international situation and events. The reconstruction of Ukraine will certainly be felt in Finland as well.<\/p>\n<p>It should be noted that once a unique factor in Finland was the large-scale import of timber from Russia. I very much hope that the Finnish forest sector will act responsibly and far-sightedly and will not return to purchasing timber from countries beyond our eastern border. I foresee that there will be a demand for Finnish forestry skills and knowledge as soon as Ukraine is able to further develop its forest sector.<\/p>","protected":false},"excerpt":{"rendered":"<p>Three forest industry experts from Finland predict the possible situation in Ukraine after the end of the war &#8211; if and when it comes. There have been speculations that Russia&#8217;s aggressive war against Ukraine could end within a year.\u00a0Forest.fi\u00a0asked three &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/what-could-the-reconstruction-of-ukraine-mean-for-the-timber-industry\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":95980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-88682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What could the reconstruction of Ukraine mean for the timber industry? - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/what-could-the-reconstruction-of-ukraine-mean-for-the-timber-industry\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What could the reconstruction of Ukraine mean for the timber industry? - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Three forest industry experts from Finland predict the possible situation in Ukraine after the end of the war - if and when it comes. 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