“Billions in profits from timber sales are fully directed to the state budget,” — Bolokhovets

We have received the financial results of SE “Forests of Ukraine” for 2025, which allow the company’s performance to be assessed on the basis of objective figures rather than subjective judgments.

As forecast, revenue reached UAH 29.9 billion, profit before tax amounted to UAH 8.4 billion, and profitability stood at 23% – several times (!) higher than in previous years. A total of UAH 15.8 billion in taxes was paid: 44% of all revenues were transferred to the state budget, the highest share in the forestry and wood-processing sector.

For perhaps the first time since independence, billions in profits from timber sales have not been dissipated through shadow schemes or divided among officials and intermediaries, but have been fully directed to the budget. This is an indisputable fact, as figures do not lie.

The growth in performance is largely the result of de-shadowing. Never before has the timber sales system in the forestry sector been so transparent. SE “Forests of Ukraine” now publicly discloses information on every (!) exchange transaction: who contracted what volume of timber and at what price. Lists of rejected contracts are also published. We are not aware of any European country with such a level of transparency.

However, the potential has not yet been exhausted – there is every chance to continue growth in 2026. We are determined to offer the market the largest volume of forest products since the start of the full-scale war.

We expect an additional one million cubic meters due to the acceleration of forest management planning approvals. Positive changes are already being felt. Another one million cubic meters is expected as a result of deregulating permitting procedures. Amendments to the regulatory framework are being prepared, but the necessary decisions have unfortunately not yet been adopted.

From a technical standpoint, the enterprise is ready to increase harvesting volumes. A process has begun to procure an unprecedented amount of specialized equipment: harvesters, forwarders, skidders, tractors, trailers, and timber transportation equipment. We are working to at least double this year’s investment plan in order to significantly accelerate harvesting operations.

Last year, the company moved 100% of harvesting service procurements to the Prozorro system. However, due to a shortage of personnel, contractors often fail to complete work on time. Therefore, across Ukraine we are forming additional in-house crews and opening hundreds of new vacancies.

At the same time, we never forget: if you take from the forest, you must invest in it. That is why no less significant investments this year are being directed toward forest protection, conservation, and reforestation.

What the enterprise inherited from former forestry units was mostly obsolete equipment – hundreds of fire stations filled with outdated scrap metal. In the south, almost nothing remained at all. We have succeeded in fully equipping all forest fire stations of SE “Forests of Ukraine” with modern tools and equipment: from protective clothing, backpack fire extinguishers, and communications equipment to mobile fire-fighting modules.

Last year, for the first time, we began purchasing modern large-scale fire-fighting vehicles that had not been renewed since Soviet times. The first nine vehicles have already been delivered, with another nine planned in the near future.

Since 2023, in the most fire-prone locations, the enterprise has created 150 (!) modern recreational sites for safe public use. In 2026, we plan to establish 50 more. This recreation program has saved the state thousands of hectares of forest. The experience of SE “Forests of Ukraine” is being adopted by foresters in other European countries, where most forest fires are also caused by human factors.

Last year, foresters completed the “Green Country” program, but the creation of new forests and the preservation of naturally regenerated forests remain our priority. Even greater attention will be paid to the care of forest plantations – this is how we will ensure the supply of high-quality commercial timber in the future.

Everything we are already doing and planning to do is aimed at maximizing the capitalization of the forestry sector. This means healthy and protected forests, modern infrastructure, an upgraded material and technical base, efficient business processes, and a professional team.

A state forestry company with a market value of billions of euros? Yes, this is realistic. We are moving in this direction. Last year, a reorganization was carried out, the organizational structure and administrative apparatus were optimized, and we are consistently disposing of non-core assets. The last schemes through which illegal timber could systematically enter the market have been shut down.

This year, we are relaunching the implementation of an ERP system – no modern company can function without an automated management system.

We are continuing the corporatization process, which includes asset revaluation, inventory, and the preparation of transfer deeds. Registration of property rights to land is being finalized.

Last year, de-occupied forestry enterprises in Kharkiv, Donetsk, and Kherson regions joined SE “Forests of Ukraine.” Restoration, harvesting, and forest protection activities have begun. The area affected by fires has decreased several-fold. At the same time, not only frontline forestry enterprises require support. We are working on integrating other forest users that are unable to fully perform their functions.

The year has started very actively. Despite snowfall and frost, harvesting dynamics are higher than last year. Equipment is operating, forest roads are cleared, and warehouses are shipping products.

We feel a great responsibility: while other businesses are forced to stop, we continue to operate and grow, compensating for budget losses.

We are only awaiting long-planned legislative and regulatory decisions aimed at unlocking the full potential of the forestry sector.

Yurii Bolokhovets
Head of SE “Forests of Ukraine”