• … Meanwhile, the fixing of the exchange rate remains
• Publication of information on public procurement
• Funds to compensate employers
• Plate competition is under threat
• Wood certification has changed

Read everything that happened last week in Ukraine and around the world that is relevant and interesting for the furniture maker in our digest:

1. The National Bank of Ukraine will gradually return to the regime of inflation targeting with floating exchange rate formation – as the functioning of the economy and financial system normalizes. In the meantime, “fixing the exchange rate and maintaining administrative restrictions on foreign exchange transactions will remain an important prerequisite for maintaining macroeconomic stability in Ukraine.”

2. The Cabinet of Ministers adopted a resolution returning the publication of information on public procurement on the ProZorro electronic portal under martial law. Thus, by installing a safeguard against inflated prices for goods and other manipulations, it will be possible to minimize the risks. At the same time, such sensitive information as the list of suppliers and their contact details should remain closed in the current circumstances, said the Minister of Infrastructure of Ukraine Oleksandr Kubrakov.

3. The Cabinet of Ministers of Ukraine has allocated UAH 200 million to compensate employers who hired IDPs due to the war in Ukraine. These are funds to compensate for the labour costs of each employed person.

4. In accordance with the EU Merger Regulation, the European Commission has launched an in-depth investigation to assess the planned takeover of Pfleiderer Polska by the well-known Kronospan. The Commission is concerned that such a merger could restrict competition in the supply of different types of wood-based panels in Poland and neighbouring regions.

The agreement may lead to higher prices and reduced choice of particleboard, fiberboard and components. This problem will affect customers in the construction and furniture sectors, as well as end-users. The parties have a large overall market share of each of these types of wood panels in several coverage areas centred around their production facilities in Eastern Europe. After the transaction, there will be no or limited number of alternative and reliable suppliers.

5. The FSC will demand the suspension of timber certificates in areas of Ukraine affected by the armed conflict. At the same time, it simplifies certification audit processes in conflict-free areas. The organization is still committed to supporting Ukrainian certificate holders as much as possible, thus allowing certification bodies (independent auditors) to continue their work in non-militarized areas, such as by remote audits and extending the time between audits by more than a year if necessary.

To support certificate holders in Ukraine, the FSC has published a set of exceptions. They are used in circumstances where an on-site audit is not possible because the audit site is located in a hazardous region or the auditors need to risk their lives to reach the audit site through such a region. The set of exceptions includes measures such as deferral and remote audit options for low-risk scenarios or mixed audits, depending on the risk assessment performed by the certification bodies.