Ukraine intends to cancel ban on timber exports for EU loan

Ukraine intends to lift its ban on timber exports in the upcoming weeks, paving the way for the arrival of the third (EUR 600 mln) loan tranche under EU macro-financial assistance program, European Commission President Jean Claude Juncker told a Nov. 24 joint press conference with European Council President Donald Tusk and Ukrainian President Petro Poroshenko.  “I was pleased that the Ukrainian president expressed his intention to lift the ban on timber exports. This was our condition,” Juncker said.

Ukraine received first installment (EUR 600 mln) of EU macro-financial support in July 2015. The disbursement of the remianing two wires under the program (EUR 600 mln each) was delayed for more than a year.

Alexander Paraschiy: Poroshenko’s intention is encouraging for Ukraine’s gross international reserves amid no progress with the IMF negotiations. An extra EUR 600 mln by the year end will add to confidence in the hryvnia’s prospects. With this EU money, we are confirming our gross international reserves forecast at USD 16.1 bln by the year end (USD 15.5 bln was reached in end-October). However, lifting the export ban isn’t certain for 2016 because parliament will have to decide, not Poroshenko.