15:09 08.08.2019

Cabinet of Ministers needs to protect Ukrainian producers of building materials – Sergiy Lishchyna

2 min read

Ukrainian woodworking companies suffer from the dumping of Belarusian producers. Co-owner of IZOVAT wool production plant and Ukrainian Saw Mills Sergiy Lishchyna in his interview with The Page: “Today we are not able to compete with Belarusian products. Prices for plywood raw materials in Belarus are much cheaper, giving them an opportunity to dump. Ukrainian forest husbandries raised prices for plywood producers. At the same time, the European market slumped, reducing their appetites, and the Ukrainian market is full.”

Sergiy Lishchyna says that Ukrainian plywood factories have been idle for several months in a row, starting from May. And he believes that limiting access of similar products from Belarus to our market is a necessary action. “If we go along the path of anti-dumping investigations, we will achieve nothing. They can last for months, while the dynamics of plywood imports from Belarus are simply disastrous,” he states.

While explaining the root of problems with Belarus, Lishchyna clarified that most Belarusian producers of plywood and chipboard were part of the Belarusian Forest Company state concern. And it as a state-owned company has the most favorable conditions. It is the source of foreign exchange currency earnings. For example, wood prices in Belarus are 40% than in Ukraine. Also, according to Sergiy Lishchyna, enterprises belonging to the Belarusian Forest Company are actively funded by the specially created State Development Bank. In fact, the sale price does not matter to such enterprises. They can sell their products at a loss if only to achieve the goal of attracting foreign exchange earnings.

It is necessary to remind that while in 2015, 848 meters of cubic plywood were imported, during five months of this year it was only 17,052 cubic meters. The import duty rate is zero, while even in the European Union, there is an import duty for this category of products.

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