Month: July 2025

Harvesting services represent the largest share of the enterprise’s procurements. Traditionally, they were acquired through direct contracts.

Since last year, SFE “Forests of Ukraine” has begun establishing a transparent, open, and civilized timber harvesting market.

Despite resistance from some operators unaccustomed to working openly and opposed to public tender mechanisms, procurement has been successfully transitioned to Prozorro.

We have convinced the business community of the advantages of concluding contracts through transparent, competitive auctions.

The result : thousands of workers are now officially employed, and contractors pay taxes into local budgets. There are greater opportunities to enforce compliance with safe working conditions. Opportunities for manipulation have been minimized – all concluded contracts are published.

The path to creating a fully‑fledged market is a long one.

We are working to create conditions that enable contractors to invest in mechanization assets. We are seeking to attract a broader range of market participants to the tenders, thereby increasing competition.

The formation of an efficient and competitive timber‑harvesting market is a guarantee that the enterprise will fulfil its obligations to wood‑processing companies regarding the timely supply of timber.

The “Iron Shift” programme was initiated by JSC “Ukrzaliznytsia” with the support of the Howard Buffett Foundation. Its participants are talented teenagers with outstanding achievements in academics, sports, the arts, and creativity, who have lost the opportunity to realise their potential due to russian military aggression. Hundreds of professional training sessions, meetings with celebrity guests, trips to camps, and journeys—this is just a portion of what nearly 5,000 participants have experienced over two years of the programme.

This time, 260 participants of the “Iron Shift” project are being sent to a five‑day camp, which will take place at the Medical Rehabilitation Center for Railway Workers sanatorium in Khmilnyk, Vinnytsia region. They will take part in an educational and sports programme, training sessions, sports activities, masterclasses, and meetings with renowned speakers.

SFE “Forests of Ukraine” has also joined the project. Fifteen of our participants are talented teenagers, aged 14 to 17, forestry warrior families. Many of these children have fathers who are missing in action or were killed in the war. Our goal is to ensure that these youngsters are not overlooked and to provide them with encouragement for further education and personal growth.

“The main goal of the project is to ensure that these children remain in Ukraine. They are the future of this country and will be the ones to rebuild it. We strive to show them that there are many different paths for development here. Our programme works with children from socially disadvantaged backgrounds, who are talented and bright. We introduce them to one another and equip them with all the practical tools they need to enter higher education and become professionals in their chosen fields,” says Sofia Koshke, Project Manager of “Iron Shift.”

The children spent their introductory day in Kyiv, visiting several of the capital’s most interesting sights, after which they departed for the camp.

Today, over 2,200 employees of SFE “Forests of Ukraine” are at the front. They are serving in almost 100 combat brigades across various units.

The Union of Forestry Warriors of Ukraine keeps in touch with the majority of them, identifying their needs and providing support.

“We have decided that official representatives of the Union should be present in every brigade where forestry warriors are serving. This will improve coordination and feedback with the mobilized foresters,” said Volodymyr Kovalchuk, Head of the Union of Forestry Warriors.

According to him, a series of meetings with mobilized employees of SFE “Forests of Ukraine” in frontline regions is planned.

The first representatives have already been selected:

Volodymyr Schneider, a mobilized forest master of the Klenivske Forestry Management Subunit of the Zviahelske Management Unit. A volunteer since the first days of the full‑scale war, he is currently serving as a UAV operator in the 30th Separate Mechanized Brigade named after Prince Kostiantyn Ostrozkyi.

Dmytro Khomyn, a forest master at the Skhidnytske Forestry Management Subunit of the Drohobytske Management Unit, joined the Armed Forces of Ukraine in the first days of the full‑scale invasion. He serves as a gunner in the 80th Separate Air Assault Halychyna Brigade of the Ukrainian Air Assault Forces.

Oleh Zablotskyi – prior to mobilization, served as a Forest Protection Engineer at the Ovrutske Forestry Management Unit; since March 2022, he has been serving in the 3rd Separate Iron Tank Brigade as commander of the UAS detachment.

Yurii Rochev – a volunteer; prior to mobilization, he served as the Electronic Timber Accounting Administrator at the Shepetivske Forestry Management Unit. He currently commands a squad detachment in the 88th Separate Battalion of the 106th Separate Brigade of the Ukrainian Territorial Defense Forces of the Armed Forces of Ukraine.

Representatives of the Branch “Forest Reproductive Resources” of SFE “Forests of Ukraine” visited JSC “Latvia’s State Forests” (LVM). At the meeting, the foresters exchanged experiences and discussed modern trends in seed preparation for cultivating higher‑quality timber.

Maris Druvaskalns, Director of LVM Seeds and Plants, acquainted the Ukrainian delegation with the enterprise’s organizational structure and the unit’s activities. The unit specialises in forest restoration using seedlings grown from locally sourced seed. Seed is collected from 62 forest seed plantations, covering a total of 800 ha across various regions of Latvia. These plantations have been designed to yield the most valuable genetic material.

What’s important?

1.Latvian foresters maintain seed reserves with a 13–20 year horizon.

Seed is stored in refrigerated storage chambers. Before placement, foresters perform extensive processing: they treat and dry the cones, extract the seed, and remove the winged appendages that hinder sowing and even distribution. The seed is then cleaned, washed, dried, and graded. Finally, it is sorted in a gravity separator, which separates fully filled, viable seeds from shrivelled, damaged, or empty ones.

The State Forest Service Laboratory of Forest Seed Control assesses seed quality. Only after receiving the control report is the seed placed in a refrigerated chamber for long‑term storage. It is kept in sealed containers at –4 °C. Under these conditions, pine and spruce seeds can remain viable for up to 20 years.

2.The Forest Research Station is equipped with cutting‑edge technologies, including sensors for monitoring air‑composition parameters.

In the state forests of Latvia, specialized scientific research is conducted at the Forest Research Station, which spans over 28,000 ha. Studies there focus on seedling survival rates, growth increments, and the selection and propagation of clones for seed plantations. For the purposes of these scientific investigations, the standard regulations governing timber harvesting, forest regeneration and afforestation, and protection against pests and diseases are not applied.

The station is equipped with two 45‑metre towers, each fitted with state‑of‑the‑art sensors that detect changes in air‑composition parameters and their impact on forest stands within a 4 km radius. Investment in each tower amounts to €2.5 million.

At the on‑site forest nursery, clonal planting stock is produced. Two greenhouses are outfitted with heated concrete floors, climate control (air conditioning), ultraviolet lighting, humidifiers, and automated irrigation systems.

Scientific and practical measures to obtain genetically high‑quality seed subsequently result in a 25 percent greater wood increment compared to conventional stands.

3.The unique “Long Nights” technology ensures optimal seedling height.

During their visit to the state‑of‑the‑art nursery LVM Mezvidu Rokaudzētava, the delegation from the Branch “Forest Reproductive Resources” of SFE “Forests of Ukraine” familiarized themselves with the unique “Long Nights” technology. This method artificially shades the seedlings in the growing fields, creating the illusion of autumn: each day, the plants are kept in complete darkness from 16:00 until 09:00 for three weeks. As a result, their growth slows, they lignify more rapidly, and they develop a terminal bud. This process produces seedlings of an optimal height (up to 15 cm) and significantly improves their quality for subsequent cultivation.

Since the beginning of the fire‑hazard period, over 500 forest fires have ignited within the enterprise’s forest estate, affecting 2,100 ha. The average size of a single fire was 3.9 ha.

Where did forest fires most frequently occur?

The greatest number of ignitions occurred in the frontline Iziumske Forestry Management Unit in Kharkiv region, with a total area burned exceeding 1,200 ha. This is equivalent to half of all forest fires recorded across Ukraine.

In the first half of last year, the fire‑affected area in the Kharkiv region reached 9,000 ha. This year, taking into account the region’s specific challenges, the situation was kept under control. To the newly integrated Iziumske forestry enterprises, the company provided six pickups fitted with firefighting modules and procured over 1,000 items of firefighting equipment. Demining operations were conducted over nearly 170 ha, enabling the establishment of an additional 200 km of mineralized firebreaks within the Iziumske Forestry Management Unit. However, more than 143,000 ha of that unit remains mined.

An abnormally warm, snow‑scarce winter, followed by a dry start to spring in the Carpathian region, has seen fires burn over 120 ha in the mountains, including 76.4 ha in Zakarpattia. This year, the enterprise procured 10 fire‑fighting modules for the forestry management subunits of the Branch “Karpatskyi Forest Office,” enabling the suppression of ground‑level fires in hard‑to‑access areas.

Persistent enemy air attacks on Kyiv have increased the number of fires in the Branch “Stolychnyi Forest Office”, which were promptly extinguished. Over the past six months, 114 fires ignited, affecting 216 ha. The average size of a single fire in the Kyiv region was 0.8 ha. To prevent rapid fire spread following enemy strikes, over 5,300 km of mineralized firebreaks have been constructed and nearly 20,000 km of existing ones renewed—10 percent more than planned.

In other regions, there were only isolated fire incidents. Although the situation is under control, SFE “Forests of Ukraine” is undertaking all necessary preparations for forest fire protection:

Infrastructure upgrades: 29,000 km of mineralized firebreaks have been constructed, and maintenance has been carried out on 112,400 of existing ones. Installation works are now beginning for 30 new television‐based fire‐monitoring systems and 24 new observation towers.

Reducing human‑caused fire risk: In the first half of 2025, over 4,500 patrols were conducted, resulting in nearly 200 violations detected and fines imposed. The number of patrols is adjusted according to weather conditions and fire‑danger class.

Training personnel: 775 State Forest Protection officers completed the “Forest Firefighting Leader” course, and 966 completed the “Forest Firefighter Training” course.

We conduct outreach with the local population: over 4,400 lectures have been delivered on adhering to fire‑safety regulations in the forest.

We procure equipment: 25 new fire‑fighting modules have been dispatched to forestries of the Branch “Skhidnyi Forest Office,” Branch “Pivdennyi Forest Office,” Branch “Karpatskyi Forest Office,” and Branch “Tsentralnyi Forest Office.” This year’s investment plan provides for the purchase of 211 motorcycles for patrolling remote forest areas.

We equip recreation points: the plan for this year calls for the construction of 50 new “Lisovychok” forest rest sites, some of which are already under construction.

During the meeting, Oleksii Kucher commended the growth in the enterprise’s financial and economic indicators for the first half of 2025 and emphasized the importance of maintaining this positive momentum.

According to the Chair of the Supervisory Board, the priority areas of SFE “Forests of Ukraine” remain: forest fire protection, supplying the needs of the Armed Forces of Ukraine and the social sector, fulfillment of wood‐supply contracts with enterprises in the wood‐processing industry.

As of mid‑July, SFE “Forests of Ukraine” is supplying the Armed Forces of Ukraine with over 1,000 m³ of timber daily, free of charge. The volume of these military deliveries continues to grow each day.

The execution of exchange‑traded forward contracts for the second half of the year and of third‑quarter agreements fully meets the planned targets. The total daily volume of timber harvesting and dispatch currently amounts to 45,000–50,000 m³.

The enterprise is preparing to hold its fourth‑quarter auctions, which begin on 12 August.

An ample supply of fuel firewood is available to the public at social prices.

The fire situation is fully under control: over the past week, across all management units of SFE “Forests of Ukraine,” except in Kharkiv region, only a few ignition points were recorded, totaling approximately 20 ha, which is a minimal figure for this time of year. In Kharkiv region, Iziumske Forestry Management Unit is the most problematic. This unit is located virtually on the front line, and its territories are largely mined, which, despite the availability of equipment and trained personnel, makes firefighting operations significantly more difficult.

This week, law enforcement authorities served a notice of suspicion to the Director General of SE “Forests of Ukraine”.

The Director General, Yurii Bolokhovets, denies the suspicion. Mr Bolokhovets’s lawyers are preparing an appeal against the decision of the Pecherskyi Court on the imposition of a preventive measure.

According to the statements of law enforcement authorities, the suspicion does not relate to Yurii Bolokhovets’s activities as Director General of SE “Forests of Ukraine”.

Nevertheless, the Supervisory Board of SE “Forests of Ukraine” is interested in ensuring the most objective consideration of this case and will closely monitor the developments.

The Supervisory Board also emphasises that the events of this week must not affect the operations of SE “Forests of Ukraine”.

Within the scope of its powers, the Supervisory Board stands ready to ensure the Enterprise’s governance and stable financial and business operations, as well as strict control over the use of funds and compliance with the law.

– Compared to the first half of 2024, revenue from product sales increased from UAH 11.1 billion to UAH 13.2 billion excluding VAT (+19%).

–  Projected profit (before tax) increased from UAH 1.8 billion to UAH 3.5 billion (+91%), and profitability rose from 16% to 27%.

– The amount of taxes paid increased from UAH 4.2 billion to UAH 5.9 billion (+40%).

The results are driven by systematic efforts to improve management efficiency.

Thanks to new control tools and de-shadowing efforts, the share of illegal timber has been minimized this year. This has led to increased demand for legal products sold through open exchange auctions.

The enterprise carried out a restructuring of its organizational structure: excess administrative staff was reduced.

Unprofitable processing facilities were shut down, and loss-making assets are being sold through the State Property Fund.

Savings on procurement exceeded UAH 237 million!!

The growth potential is not exhausted. The enterprise continues to work on cost optimization and increasing production efficiency.

In the village of Krasna, Tyachiv district, at the Krasniaanske Forestry Management Subunit of the Brusturianske Management Unit, branch “Karpatskyi Forest Office”, an 18‑metre bridge over the Krasnoshurka River was destroyed at the end of 2023. Floodwaters undermined the concrete river‑bank abutment, and the steel span supporting the wooden deck collapsed into the river.

This caused serious problems for the local population and complicated the work of the foresters.

For several years, local residents living on the opposite bank or owning agricultural land had to wade across the river or drive through a nearby shallow crossing.

Staff of the Krasniaanske Forestry Management Subunit were unable to fully conduct forest‑management activities on nearly 90 percent of their territory. Contracting organizations began refusing to provide services because they could not deliver fuel or their personnel to the logging sites—there was simply no alternative route.

As a result, timber harvesting in the Krasniaanske Forestry Management Subunit fell sharply. In 2023, the volume exceeded 6,500 m³ for the year. In the first half of this year, only 938 m³ were harvested.

The price of timber from the forestry management subunit has increased. The cost of firewood for non‑industrial use rose from UAH 850 to UAH 1,086 per m³. This hike was driven by the longer delivery distance from other forestry management subunits, which raised fuel expenses. Accordingly, the cost of transporting firewood from storage to the customer’s yard also went up—from UAH 3,000 to UAH 5,000.

In the event of a large forest fire, neither the foresters nor the State Emergency Service units would be able to extinguish it, as no heavy equipment could cross the river and the ditch. This could have catastrophic consequences.

Immediately after the bridge collapse, branch “Karpatskyi Forest Office” set up a commission to inspect the site. Based on its findings, a reconstruction design was produced. An external expert organization then assessed the cost of restoration.

At the beginning of this year, SFE “Forests of Ukraine” launched a tender for these services through Prozorro. The winning bidder offered the lowest price—UAH 7.7 million, yielding savings of nearly UAH 500,000. For over a month, the contractor has been carrying out the restoration work.

The new bridge will feature a robust design: a strong, reinforced monolithic concrete slab will ensure its longevity. A drainage system has been incorporated to prevent rainwater from accumulating or damaging the structure. The riverbank will be reinforced with specially designed gabions to stop water from eroding the embankments and bridge supports. Road signs will also be installed.

Currently, the first phase of construction is complete—the two river‑bank abutments of the bridge have been built. The contractor plans to finish all remaining work before winter.

As a result, the Krasniaanske Forestry Management Subunit will gain unobstructed access to its logging fund. The social sector will receive an adequate supply of timber at reasonable prices. Raw materials for local businesses will be delivered without interruption. Proper forest maintenance will be ensured. Village residents will be able to reach their homes and agricultural lands freely and safely.

Strikes specifically targeting wood‐processing enterprises have become systematic. The enemy is attempting to destroy our export potential. Recently, one of Ukraine’s leading manufacturers in the Sumy region was the target of a nighttime attack. Earlier, drones caused significant damage to a production facility in the Chernihiv region.

Just last night, the russians struck the Polish Barlinek plant in Vinnytsia, as reported by the Minister of Foreign Affairs of Poland, Radosław Sikorski.

Barlinek has long been a trustworthy partner of SFE “Forests of Ukraine” and is one of the leaders in its segment. We stand ready to offer support tools to affected manufacturers, both Ukrainian and European.

In particular, we can consider deferring payment for products under existing contracts. This will allow affected enterprises to concentrate their resources on restoring operations.

We are exploring additional support measures. The strength of our country lies in our unity. The enemy cannot divide or defeat us.