Chair of the Supervisory Board of SFE “Forests of Ukraine”, Mark Vytvytskyy: “Trust is built not by words, but by rules and institutions”
On July 10, during an extraordinary meeting, the Supervisory Board of SFE “Forests of Ukraine” considered a number of important governance and leadership matters. Mark Vytvytskyy was elected Chair of the Supervisory Board, while Iryna Hruzinska was elected Deputy Chair. Roberts Strīpnieks was appointed Chair of the Nomination and Remuneration Committee, and Janne Harjunpää continues to serve as Chair of the Audit Committee.
Following his election as Chair of the Supervisory Board, Mark Vytvytskyy outlined the principles that will guide the Supervisory Board in its work and shared his vision for the next stages of the Enterprise’s development.
“It is a great honour to have been elected Chair of the Supervisory Board. I sincerely thank my fellow Board members for their trust.
SFE “Forests of Ukraine” is one of Ukraine’s largest state-owned enterprises and is entrusted with managing one of the country’s most valuable natural resources. The enterprise provides employment for thousands of people, contributes billions of hryvnias to the state budget each year, and plays a vital role in Ukraine’s economic resilience, environmental security, and future recovery.
Strong state-owned enterprises begin with strong corporate governance. Ukraine is developing a new culture of governance for state-owned companies — one that is transparent, professional and accountable. SFE “Forests of Ukraine” is among the enterprises undergoing this transformation.
Several years ago, the state forestry sector underwent a major consolidation. More than 150 individual forestry enterprises were merged into a single national company. While this was an important milestone, significant work still lies ahead. We must complete the integration of business processes, harmonise operational standards, strengthen governance systems, and establish a unified corporate culture.
That is why, following the establishment of the independent Supervisory Board, our first priority was to obtain an objective understanding of the enterprise’s current state.
The Supervisory Board initiated a comprehensive independent assessment of the enterprise’s key areas of activity. It comprises six separate audits and reviews, including, for the first time in the enterprise’s history, the engagement of independent external auditors, the strengthening of the internal audit function, and cooperation with the State Audit Service of Ukraine and other competent public authorities.
The objective is to gain a clear picture of the enterprise’s current performance, identify opportunities for improvement, detect risks at an early stage, and establish a solid foundation for its long-term development. We are already receiving the first results, and the management team is developing detailed response plans that include specific actions, responsible owners, implementation timelines, and regular reporting to the Supervisory Board.
One of the first practical outcomes of the independent reviews has been a set of recommendations to strengthen oversight of the management of state-owned assets. The audit confirmed the need for a comprehensive review of the historical formation of certain assets, inventory results, disposal transactions, and the legal registration of property rights.
Having reviewed the audit findings, the Supervisory Board endorsed these recommendations and instructed management to undertake a comprehensive analysis. Pending the completion of the independent asset assessment, the Supervisory Board recommended suspending the disposal of state assets, except where such transactions are required to support Ukraine’s security and defence sector.
The next important milestone will be the launch of an open and professional competition to select a new General Director. However, for the Supervisory Board, this is not the ultimate objective. Our role is not to manage the enterprise’s day-to-day operations. Our task is to ensure that it operates under clear rules, with professional management, an effective control system and high standards of integrity. Such institutions provide stability, development and trust.
Strong individuals matter, but strong institutions matter even more.
Another key strategic milestone will be the corporatization of the enterprise and its transformation into a joint-stock company.
This decision falls within the authority of the State as the owner of the enterprise. Nevertheless, the Supervisory Board is already working closely with the Government, relevant public authorities, and other stakeholders to help prepare this transformation in accordance with international best practices in corporate governance. We are confident that this step will create a strong foundation for the enterprise’s future development, improve operational efficiency, and open new opportunities for attracting investment.
To build a stronger and more modern state-owned enterprise, the Supervisory Board has identified several strategic priorities:
– improve the efficiency of financial resource management through modern management systems, digital solutions, and robust internal controls;
– modernise forestry operations through advanced equipment, digital technologies, and innovation;
– create conditions that encourage investment and strengthen partnerships with the private sector;
– ensure the highest standards of transparency and openness in line with international corporate governance best practices;
– invest in people by establishing a fair remuneration framework, attracting strong managers, and supporting the professional growth of employees; and
– maintain an open and constructive dialogue with employees, government, business, and society, recognizing that trust is the foundation of lasting change.
We recognise that transformation within an enterprise of this scale cannot happen overnight. It is a long-term effort that requires professionalism, consistency, and partnership. No Supervisory Board can achieve this transformation alone. Success depends on close cooperation between the State as the owner, the enterprise’s management, employees, government institutions, business partners, and the international community.
Many challenges still lie ahead. We fully recognise the scale of our responsibility. At the same time, we firmly believe that the future success of SFE “Forests of Ukraine” will depend not on individuals, but on the strength of its institutions, professional governance, and the consistent application of clear rules. This is the path that will transform state-owned enterprises and form foundation of a strong national economy and strengthen public confidence in the State.
After all, trust is built not by words, but by rules and institutions.”