Month: June 2025

“This week five semi-trailers were delivered to the 43rd Separate Artillery Brigade named after Hetman Taras Triasylo for the transport of self-propelled howitzers – the German Panzerhaubitze 2000 and the Swedish Archer.

The brigade’s units are deployed along the entire front line from Sumy to Zaporizhzhia. From long range, they deliver precise and powerful strikes against the enemy.

The brigade is equipped with the world’s best self‐propelled artillery systems. However, there is no equipment to transport modern long‐range artillery over long distances—for repairs or to other sectors of the front.

Tractors and low-loader trailers have to be contracted from a private supplier. The self-propelled howitzers are first moved by road to a railway station, then shipped by rail, and finally transported by road again. A limited number of low-loaders are available, but older equipment—designed for lighter loads—cannot handle the weight of a PzH 2000 (over 60 tonnes).

At the request of an artillery brigade, SFE “Forests of Ukraine” procured for its artillery units a batch of brand-new low-loader trailers worth over UAH 29 million.

The Ukrainian-manufactured equipment is powerful, reliable, and fully adapted for transporting self-propelled howitzers.

From now on, the brigade will no longer lose precious time relocating its artillery systems. We sincerely hope this will help our heroes halt the enemy’s advance.

On behalf of the 43rd Brigade’s command, I extend greetings to the entire forester family of “Forests of Ukraine”. I also thank our entire team. Dear friends, it is your work that enables the enterprise to find funds for procuring the equipment our military needs,” said Yurii Bolokhovets.

In Ukraine, there is an acute need for the development and rehabilitation of young forests. Vast areas of young stands have accumulated, particularly in the northern regions.

They need to be properly structured so that in 15–25 years we obtain healthy, climate-resilient stands with a significantly higher timber volume. However, it is becoming increasingly difficult to engage contractors for tending cuts.

Such work is labor-intensive and dangerous—the timber consists of small-diameter trees, harvesting is selective, and the yield is low.

Around the world, logging machines—harvesters—are used for these operations.

As part of the 2025 investment programme, we have announced the procurement of a batch of five harvesters for tending cuts.

Each machine harvests 60–70 m³ of timber per day—three to four times more than a three-person crew (15–20 m³).

The average cost of timber harvesting services for such operations (excluding extraction) is UAH 425/m³ (ex VAT). The cost of machine harvesting is UAH 300/m³ (ex VAT).

The difference amounts to over UAH 8 million per year!

Modern multi‐purpose machines operate with minimal impact on the stand since the objective of tending cuts is to develop a high‐quality stand.

Since such machinery is virtually absent from the Ukrainian market, we have submitted our procurement proposals directly to the manufacturing plants. We are purchasing the harvesters on an ex-works basis—handling logistics and customs clearance ourselves. This approach increases competition and helps us avoid overpayment.

Overall, the 2025 investment programme of SFE “Forests of Ukraine” envisages the purchase of multi‐purpose logging machines, tractors, timber transport trailers, and skidders, for a total investment exceeding UAH 636 million.

This week a joint meeting of the State Forest Resources Agency of Ukraine and SFE “Forests of Ukraine” was held with representatives of the wood‐processing industry.

At the conclusion of the event, a representative of one of the industry associations proposed introducing “blacklists” for unscrupulous market participants.

According to him, there are categories of buyers who inflate prices at auctions, secure volumes under contract, and then fail to collect the resource. As a result, other honest purchasers allegedly end up overpaying for the timber.

“Is the factor of “speculative purchases” truly present in the market? To what extent does it influence the market?

To rely on facts rather than assumptions, we analyzed the performance of auction contracts in the first quarter for each buyer.”

Overall, 2.1 million m³ of timber was sold, with over 2,000 buyers under contract.

1,600 counterparties fulfilled 90 % or more of their contracted volumes, accounting for 80 % of the total resource.

The contract allows for a deviation of up to 10 % from the contracted volume. These counterparties therefore duly fulfilled the terms of their agreements.

229 buyers paid for and removed between 70 % and 90 % of their contracted timber (15 % of the total resource).

Only 35 buyers did not collect any cubic meters at all. That amounts to approximately 6,000 m³—0.3 % of the total volume sold.

The defaulters explained their refusal by citing the lack of foreign trade contracts, insufficient working capital, and the mobilization of individual entrepreneurs or their employees. The unsold volumes were re-offered in supplementary auctions and sold at market prices according to the price list derived from the auction results.

Penalties were imposed on the defaulters. The majority did not return to participate in any further auctions. Only 12 of the 35 companies took part in the second-quarter auctions. To date, no complaints have been recorded regarding contract non-performance by these companies.

The numbers show that there is no systemic phenomenon of “speculative purchases” today.

Therefore, the prices set at auction are entirely market-based. All talk of “overpayment” is no more than unfounded speculation, unsupported by the facts.

SFE “Forests of Ukraine” is consulting with international brokers specializing in the sale of carbon certificates.

A carbon certificate (credit) verifies the reduction or absorption of a specified amount of CO₂ emissions.

In some developed countries, taxes on greenhouse‐gas emissions are very high. Consequently, local producers are keen to purchase carbon certificates in order to offset their own emissions.

For example, the local carbon emissions tax can reach €117–120 per tonne. By contrast, a carbon certificate on the European market can currently be purchased on average for €40–60 per tonne (USD 20–50 per tonne in the US).

According to the World Bank, by 2030 the carbon certificate market could grow fifteenfold.

On average, one hectare of forest absorbs 3–4 tonnes of carbon per year, which amounts to approximately €120–140 per year at current prices.

Obtaining a certificate requires undergoing a comprehensive audit process: carbon credits must be verified, certified, and issued in accordance with the applicable standard.

We are discussing terms, conditions, and procedures with potential partners who offer services for placing Ukrainian “forest” carbon certificates on international markets.

An important condition is that a certificate can only be registered for land undergoing afforestation for the first time.

Thus, the sale of carbon certificates can become a joint project between SFE “Forests of Ukraine” and local communities. We will finally secure land areas to fulfill the strategic goal of increasing the country’s forest cover, while communities will gain a financial incentive for transferring reserve lands for afforestation.

In the Mykolaiv and Odesa regions the “Pivdennyi Forest Office” established seedling nurseries covering a total of 45 ha.

A nursery, ranging from 0.3 to 3 ha, has been set up in almost every forestry.

Just a year ago, this area was overrun with weeds. Thanks to the enterprise’s investments, the nurseries have been restored—they now have soil‐tilling equipment, irrigation systems, and shade nets to protect seedlings from the hot southern sun. Staff have also been assembled.

By spring 2026, 25 million seedlings planted this spring and last autumn are expected to be ready!

This will be enough to afforest 4–5 thousand hectares.

A significant share of the planting stock will be allocated to restoring forests in the de-occupied Kherson Region forestry enterprises, which will join SFE “Forests of Ukraine” this year.

1.5 ha – the area of fires that occurred over the past week on the territories of SFE “Forests of Ukraine.”

In the Sumy and Dnipropetrovsk regions, several small ignitions caused by the crash of enemy drones and rockets were extinguished almost immediately.

One exception is the Kharkiv region, where, unlike most other areas, it is dry and hot.

In the recently incorporated Izyumske Forestry Management Unit, nearly 30 hectares of forest burned.

In particular, a large fire broke out in Starosaltivske Forestry, affecting 21 ha. The fire, as often happens, spread from adjacent self-seeded agricultural lands. The forestry’s territory is mined — the fire was accompanied by detonations of mines and munitions.

Another fire, covering 4 ha, occurred as a result of enemy shelling in Borivske Forestry.

The fire was quickly contained thanks to the use of new equipment—forest‐firefighting modules, that SFE “Forests of Ukraine” delivered this spring to the newly integrated forestry enterprises.

In the other regions, rainy and cool weather have so far favored the foresters. But summer has only just begun! Therefore, regional offices are continuing their fire‐preparedness measures.

Infrastructure

In just one week, the forestry units of Branch “Pivnichnyi Forest Office” established 412 km of mineralized firebreaks and carried out maintenance on 907 km. Over the past month, 1,400 km of firebreaks were created in the Kyiv and Zhytomyr regions. At the Branch “Tsentralnyi Forest Office”, 457 km of new mineralized firebreaks were laid and maintenance was performed on 2,000 km of existing strips. At the “Podilskyi Forest Office”, 13 observation towers were repaired.

Upgrading the Firefighting Equipment and Inventory

At the Branch “Slobozhanskyi Forest Office”, 517 pressure fire hoses, 400 backpack fire extinguishers, fire nozzles, and other items were acquired. At the forestry units of the Branch “Tsentralnyi Forest Office”, a batch of new forest-firefighting modules has arrived and is now being mounted on pickups. An additional six modules were delivered to the forestry units in the Dnipropetrovsk and Zaporizhzhia regions. In the Sumy and Chernihiv regions, over the past week, foresters upgraded 26 piers at fire-fighting water reservoirs to improve water intake.

Personnel Training

In the past month at the “Tsentralnyi Forest Office”, 42 employees completed the “Forest Fire Incident Commander” course and 30 completed the forest firefighter training course. At the “Podilskyi Forest Office”, more than 200 lectures were delivered to the local community on proper conduct in the forest.

From 27 to 31 May 2025, a UFMA trade mission took place in Toronto, during which SFE “Forests of Ukraine” presented its own-manufactured products. Initial negotiations on potential export contracts began already during the event.

The company’s participation in the exhibition was initiated by Markiyan Vytvytskyy, a member of the Supervisory Board of SFE “Forests of Ukraine,” who serves as Vice President, Chair of Innovation and Technologies Committee of the Canada-Ukraine Chamber of Commerce (CUCC).

“At SFE “Forests of Ukraine”, there is significant potential in the field of non-timber forest uses, particularly in the production of eco‐food products. These are value‐added goods made from natural raw materials—essentially wild‐harvested. Such products generate high interest among Western consumers. Expanding export markets is not only a logical step but also an effective tool for diversifying the enterprise’s revenues,” said Markiyan Vytvytskyy.

The event brought together leading Ukrainian food producers, as well as representatives of Canadian retail chains, buyers, and importers. The trade mission was organized by UFMA in partnership with the Canada-Ukraine Chamber of Commerce, with the support of the Embassy of Ukraine in Canada, the international platform Nazovni.online, the Entrepreneurship and Export Promotion Office, and the national Diia.Business project.

The Canning Workshop of the Manevytske Forestry Management Unit of the Branch “Poliskyi Forest Office” successfully passed the competitive selection and met all requirements to participate in the mission. This enabled the enterprise to present its products to potential foreign partners.

Currently, the export portfolio includes preserves, jams, pureed berries without heat treatment, and freeze-dried products.

Eco‐products from Volyn have previously been present in the markets of Canada, Israel, Poland, Germany, and the United States.

It is worth noting that Canada was one of the first export destinations for the berry product line.

In Ukraine, these products are available at the “Lisovychok” recreational complexes or online at lisovychok.com.ua.

At the State Forest Resources Agency of Ukraine, another quarterly meeting was held between representatives of the agency and SFE “Forests of Ukraine” and representatives of the wood-processing industry and environmental organizations.

Topic: “Opportunities to increase timber harvesting volumes while adhering to all necessary environmental standards”.

The roadmap for addressing this issue was approved by the parties back in March at the SFE “Forests of Ukraine” forum in Zhytomyr. SFE “Forests of Ukraine” has consistently fulfilled its commitments to the market.

– The share of resources allocated to semiannual forward contracts has been increased to 30% (1.56 million m³ for the second half).

– Starting auction prices are now set based on actual sale prices (the “speculative” purchases for which no deliveries were made have been excluded). The period used to calculate starting prices has been extended (temporary price spikes are leveled out).

– Work on approving forest inventory materials has been significantly accelerated (almost 400,000 m³ has already been added to the harvesting fund, with a further 1 million m³ expected by year’s end).

– A transparent and competitive market for harvesting services is being established — contracts for 3.4 million m³ of timber have already been concluded through open auctions. If a contractor fails to fulfill its obligations, the enterprise reinforces its own harvesting crews by bringing the contractor’s employees onto its payroll.

The State Forest Resources Agency of Ukraine has done substantial work in refining the regulatory framework. A new regulatory act is now being prepared for Cabinet of Ministers approval, which will allow SFE “Forests of Ukraine” to add at least another 0.5 million m³ of timber to its harvesting operations in the future.

However, much work remains to be done to amend the legislation. Support from the business community for this process is very important.

As a result of the meeting, it was agreed to collaborate in the following areas:

– Strengthen work and coordinate efforts to address legislative regulation of the approach to conducting preparatory works for the special use of forest resources; deregulation in the forestry sector, particularly concerning the procedure for approving forest inventory materials and simplifying the procedure for conducting forestry activities on lands of the Nature Reserve Fund.

– Harmonization of current legislation with the provisions of Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011, and reforming the approach to conducting environmental impact assessments in the forestry sector.

– Methodological preparation for the transition to transformation felling aimed at conducting forestry according to close-to-nature principles, including with respect to forest inventory materials, as well as training specialized professionals.

– Expanding the practice of quarterly meetings with representatives of the wood-processing industry and environmental organizations.

At the premises of Kolomyike Forestry Management Union of Branch “Karpatskyi Forest Office”, a scientific‐practical seminar titled “Dissemination of Best Practices for Responsible Forest Management According to the FSC Standard for Ukraine” was held.

The event was organized by FSC Ukraine with the support of SFE “Forests of Ukraine,” NUBiP of Ukraine, and URIFFM (UkrNDILGA). Seminar participants—forest management staff, representatives of non-governmental organizations, certification bodies, and research institutions—discussed best practices for meeting FSC standard requirements related to environmental values such as Representative Sample Areas of Native Ecosystems (RSANEs) and High Conservation Value areas (HCVs).

Particular attention was paid to the results of a three-year project aimed at deep transformations in foresters’ approaches to ensure the long-term conservation of representative sample areas while also meeting society’s economic needs. Such areas are “living laboratories” where unique natural phenomena and ecosystem self‐regulation mechanisms can be observed, informing the development of effective management procedures for RSANEs and HCVs. At our forestry management unit, the successful integration of these procedures into the management system was demonstrated.

“It is gratifying to note the success of our joint efforts, for at the project’s outset our experts spoke of the various aspects of identifying, assessing, and conserving RSANEs and HCVs, and today we hear from responsible staff how these requirements have been implemented in practice as part of their daily work and established procedures,” said Pavlo Kravets, Director of FSC Ukraine.

Participants visited unique natural sites, including the genetic reserve of European beech, stands of beech forest dominated by common ivy (listed in the Green Book of Ukraine), and unique quasi-primeval silver fir forests over 150 years old.

“The best-practices project has once again demonstrated that a close connection between our foresters’ practical experience and experts’ scientific approach is key to responsible forest management. Combining the knowledge and experience of forest management specialists with expert insights allows us to develop effective procedures that transform valuable forest areas into resilient ecosystems capable of meeting today’s challenges, including climate change,” emphasized Halyna Domashovets, Head of the Forest Certification Sector, Department of Forest Management, SFE “Forests of Ukraine.”

The seminar once again confirmed the importance of combining a scientific approach with foresters’ practical experience for responsible forest management and the preservation of forest ecosystems for future generations.

This spring, at the Branch “Pivdennyi Forest Office”, it was decided to plant Pallas’s pine for the first time without first growing seedlings in nurseries!

The experimental method mirrors natural forest establishment and allows the trees to acclimate more quickly to site conditions.

To ensure a supply of high-quality seed, in 2023 the Branch “Pivdennyi Forest Office” acquired a modern conifer cone‐processing facility thanks to investments by SFE “Forests of Ukraine.”

At the same time, sufficient planting stock for forest regeneration has been grown.

As part of the experiment, 2.5 kg of Pallas’s pine seed material was sown over 1.4 ha. Nearly 70% of the seedlings have already germinated and begun to grow.

The approximate cost of afforesting such a plot with nursery‐grown seedlings is around UAH 18,600. Sowing seed reduces expenses by threefold!

There are many factors impeding the application of the new method – from soil characteristics to bird populations in the forests (which can damage the seedlings).

At the same time, establishing forest by direct seeding minimizes the costs of seedling preparation and cultivation and will increase the profitability of operations at the Branch “Pivdennyi Forest Office” of SFE “Forests of Ukraine.”

During the summer, several manual tending operations are planned for the forest cultures to oxygenate the roots and clear the site of weeds. If by autumn the survival rate of the forest cultures exceeds 50 %, the experiment will be considered successful. In the future, this will enable a substantial reduction in forest regeneration costs.