Cross-border cooperation with the EU countries will facilitate the integration of the Ukrainian woodworking industry into the EU market – report by IER and WEI

Polish and Ukrainian experts have prepared recommendations for Ukraine and Ukrainian companies in the woodworking industry for the successful integration of the industry into the EU’s common market.

Ukrainian producers have great potential for dynamic growth and demonstrate significant resilience to crisis conditions, which emphasizes their ability to adapt and innovate. This is stated in the report “Ukrainian Way to the European Union. Polish experience. Woodworking Industry Sector”.

“Strengthening cross-border cooperation with EU countries, in particular through joint ventures, investments in cross-border production facilities and knowledge exchange initiatives, can help Ukrainian companies overcome regulatory and logistical barriers and increase their competitiveness in the EU market,” the report says.

The war has affected 3 million hectares of Ukrainian forests, and some areas are occupied or mined. Ukraine’s forest coverage was already one of the lowest in Europe – only 16% of the territory, while the average in the EU is 39%.

Experts from the Warsaw Institute of Enterprise (WEI) and the Institute for Economic Research and Policy Consulting (IER) have developed a number of recommendations for Ukrainian companies and government agencies to facilitate Ukraine’s integration into the European Union in the forestry, woodworking, and furniture sectors.

The Polish experience is the basis for the recommendations, as Poland is one of the EU leaders in this area. The country ranks third in terms of production and is the largest exporter in the Union, accounting for 19% of European furniture exports.

The key measures for Ukraine include harmonization of forestry and woodworking regulations with EU legislation, in particular on sustainable forest management, wood certification, and environmental protection.

Strong institutions and control mechanisms need to be established to ensure Ukraine’s compliance with EU standards. The EU’s 2030 strategy envisages a 55% reduction in emissions, protection of old forests, and FSC and PEFC certification.

The next measure is to develop a transparent and competitive timber market. “A well-organized timber market will increase investor confidence, attract European partners, and reduce corruption, making the Ukrainian forestry sector more sustainable and globally competitive,” the recommendations say.

This will be facilitated by the introduction of a transparent system of certification of raw materials and products of the furniture industry according to European standards.

The Ukraine Facility plan includes a “green transition”, the fight against illegal deforestation, and harmonization with EU timber sustainability regulations (FLEGT, EUDR). The reforms are scheduled to be completed in the second quarter of 2026.

To develop the market and logistics in Ukraine, it is necessary to:

  • create clusters for wood and furniture production, which will facilitate cooperation between enterprises and knowledge exchange at the international level;
  • improve the transportation infrastructure, which will increase the efficiency of logistics;
  • Diversify timber products and markets to reduce dependence on a single source of income.

Employment development should include the development of Ukrainian vocational education programs for the woodworking industry in colleges and training centers, as well as support for retraining by providing opportunities to acquire new skills through specialized courses.

Experts emphasize that the implementation of these measures will allow the Ukrainian woodworking sector to not only better adapt to European standards, but also increase its competitiveness in international markets. This will be an important step towards ensuring the sustainable development of the industry and Ukraine’s economic recovery after the war.

The report was prepared within the framework of the project “Ukraine’s Path to the European Union. Poland’s Accession Experience”, implemented jointly by the Warsaw Institute of Entrepreneurship (Poland) and the Institute for Economic Research and Policy Consulting (Ukraine) with the joint support of a grant from the Open Society Foundation and the International Renaissance Foundation, Ukraine.

The full text of the report in English can be downloaded here.

Source: IER

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