Business discusses proposed amendments to the timber exchange sale contract

02/ 02/ 2026

During a meeting attended by representatives of the woodworking and furniture industries, participants discussed proposals to amend the timber exchange sale contract, in particular with regard to the regulation of accounts receivable. At the meeting, Yurii Andriiv, Committees Manager at the European Business Association, presented the consolidated position of the business community concerning the proposed amendments. In particular, the business community emphasises that the current version of the contract already contains sufficient mechanisms to protect the seller’s interests. Under the terms of the contract, the buyer is required to make 100% prepayment for each batch of goods. In the absence of such payment, the seller is entitled not to dispatch the products, to sell them to another buyer, and to withdraw from the contract without refunding the guarantee deposit. Businesses have also expressed particular concern over the proposed introduction of a penalty for receiving goods without prior payment. In the view of market participants, such a model creates direct incentives for abuse, whereby it may become economically advantageous for a seller deliberately to dispatch goods without payment, generate accounts receivable and automatically accrue fines and penalty interest. This, in turn, would negatively affect the operations of woodworking enterprises. Businesses also draw attention to the proposed order of debt repayment exclusively in favour of the seller, which in practice would make the actual repayment of outstanding amounts for goods impossible and create conditions for the artificial accumulation of debt. Furthermore, the imposition of double sanctions in the form of both a fine and penalty interest is regarded as a disproportionate and punitive measure for businesses. Participants stress that, in accordance with the applicable legislation, penalties must be proportionate to the consequences of the breach of an obligation. At the same time, the business community acknowledges the challenging situation currently prevailing in the timber market with regard to the performance of contractual obligations. Industry representatives call for the joint development of a balanced solution through the establishment of a working group involving representatives of public authorities and woodworking enterprises.

At the meeting, Yurii Andriiv, Committees Manager at the European Business Association, presented the consolidated position of the business community concerning the proposed amendments.

In particular, the business community emphasises that the current version of the contract already contains sufficient mechanisms to protect the seller’s interests. Under the terms of the contract, the buyer is required to make 100% prepayment for each batch of goods. In the absence of such payment, the seller is entitled not to dispatch the products, to sell them to another buyer, and to withdraw from the contract without refunding the guarantee deposit.
Businesses have also expressed particular concern over the proposed introduction of a penalty for receiving goods without prior payment. In the view of market participants, such a model creates direct incentives for abuse, whereby it may become economically advantageous for a seller deliberately to dispatch goods without payment, generate accounts receivable and automatically accrue fines and penalty interest. This, in turn, would negatively affect the operations of woodworking enterprises.
Businesses also draw attention to the proposed order of debt repayment exclusively in favour of the seller, which in practice would make the actual repayment of outstanding amounts for goods impossible and create conditions for the artificial accumulation of debt.
Furthermore, the imposition of double sanctions in the form of both a fine and penalty interest is regarded as a disproportionate and punitive measure for businesses. Participants stress that, in accordance with the applicable legislation, penalties must be proportionate to the consequences of the breach of an obligation.

At the same time, the business community acknowledges the challenging situation currently prevailing in the timber market with regard to the performance of contractual obligations. Industry representatives call for the joint development of a balanced solution through the establishment of a working group involving representatives of public authorities and woodworking enterprises.