Month: September 2025
This week, the Pivnichnyi Forest Office branch set a record among the divisions of SFE Forests of Ukraine — 1,105 cubic meters of timber were delivered to meet the needs of the Ministry of Defense and other military units.
That’s approximately 18 railway cars.
In total, 2,215 cubic meters of timber have already been supplied in September, and by the end of the year, we plan to deliver at least 27.6 thousand cubic meters more. And this number will continue to grow, as the military regularly request assistance.
Most of the deliveries consist of Scots pine — about 95% of the total volume. This timber is dense, strong, and at the same time lightweight. In addition, oak, maple, ash, and linden are also supplied.
The timber is provided free of charge. The military unit determines the required volume, coordinates it with the Regional Military Administration, after which the enterprise promptly ships the material.
Next week, the main timber auctions with delivery in the fourth quarter will conclude. The volume of resources put up for auction by SFE “Forests of Ukraine,” compared to last year, has practically not changed (taking into account the products sold earlier in summer at six-month forward auctions). Starting prices at the auctions were lower than actual sales prices; nevertheless, demand once again pushed prices upward. A detailed analysis will be published later, but preliminary data shows that prices have risen on average by more than 50%.
This situation, of course, raises concerns among businesses.
SFE “Forests of Ukraine” is equally interested in maintaining the stable operation of the woodworking industry and ensuring a balance between supply and demand. Therefore, we are always open to dialogue with businesses.
Following the latest sectoral meeting organized by the Federation of Trade Unions together with a group of MPs, a number of proposals were voiced on social media. And although most of these issues are not directly within the competence of SFE “Forests of Ukraine” but rather of commodity exchanges or government authorities, we join in their public discussion.
1.Cancellation of the single clearing account for guarantee deposits
Traditionally, auction participants would select the lots they intended to bid on before the start of trading and, accordingly, made guarantee deposits. In 2025, following business proposals, commodity exchanges introduced a single clearing account. This allowed participants not to tie up large amounts of working capital (limited only to the lots for which bids were submitted), enabled competition for a greater number of lots, and strengthened competition overall. On the other hand, risks of unscrupulous actions appeared. The issue of introducing or canceling the single account is not within SFE “Forests of Ukraine’s” competence; however, our position is that timber auctions should not become a platform for speculation and unfair competition.
2.Introduction of a tiered system for guarantee deposits
Our position is that the market must operate under uniform rules for all—small, medium, and large businesses. These rules should not limit competition in some segments while intensifying it in others.
3.Introduction of an effective mechanism for bank guarantees
Auction participants pay guarantee deposits not to the account of SFE “Forests of Ukraine”; until contracts are signed, the funds remain in the account of the Unified Clearing Depository (UCD). But we support innovations that reduce the burden on businesses while preserving control tools and ensuring responsibility.
4.Strengthening the penalty system for unscrupulous participants
This issue has been discussed for a long time. We believe that businesses and auction organizers must find a balanced solution that does not harm companies affected by war-related challenges (such as mobilization of workers) but at the same time increases accountability for dishonest participants.
5.Transparency and publicity of auction participants
SFE “Forests of Ukraine” procures goods and services via the Prozorro platform, so our contracts and contractors are public. We also support transparency in timber sales, but this requires an appropriate regulatory framework.
6.A more tailored and responsible approach to lot formation
SFE “Forests of Ukraine” forms lots according to recommendations from the State Forest Agency, which are the result of consultations with businesses. Lot formation reflects the business landscape of the region—for example, in Zakarpattia, where small businesses dominate, 90% of lots are formed with a volume not exceeding 100 m³. On a monthly delivery basis, this volume averages about 30 m³. SFE “Forests of Ukraine” is open to dialogue with businesses regarding changes in lot formation if there are objective reasons for it.
7.Publication of the starting price formation methodology
We will not comment for other forest users, but the methodology of SFE “Forests of Ukraine,” developed in consultation with businesses, has been repeatedly made public. Prices for quarterly auction trades and semiannual forward contracts are based on the actual selling prices of the previous two quarters (for which deliveries took place) and the starting prices of the current quarter’s auctions. At the fourth-quarter auctions, starting prices were significantly lower than current selling prices. SFE “Forests of Ukraine” is open to receiving and considering proposals regarding the formation of starting prices.
8.Accountability of regional managers of SFE “Forests of Ukraine” for ensuring declared timber volumes on the market
The effectiveness of a regional manager’s work is primarily reflected in the percentage of contract fulfillment. Currently, for forward contracts, this exceeds 100% (ahead of schedule), and for third-quarter contracts, by the end of the month, it will exceed 90% (not 100% because some buyers refuse or fail to pay on time, losing their right to the goods). Thus, regional branches faithfully harvest and deliver the contracted volumes. As for harvesting in general, permits are required to conduct it. This procedure, as is well known, depends on many factors, and the efficiency of a regional manager is only one of them—and often not the decisive one.
Debris from drones caused ignition points, which were quickly extinguished by the foresters of SFE “Forests of Ukraine.”
1.Radynske forestry, Ivankivske Forestry Management Unit (Kyiv Region)
The fire spread over 1.4 hectares of forest. Extinguishing efforts were complicated by the risk of secondary detonation at the drone crash site. Two fire trucks, two firefighting modules, a tractor with a plow, and 12 forest protection workers were involved. The new equipment purchased by the enterprise over the past two years proved very helpful. This was the second time in September that the Ivankivske Forest District suffered from the consequences of enemy attacks.
2.Davydkivske forestry, Ovrutske Forestry Management Unit(Zhytomyr Region)
The fire covered an area of over 0.5 hectares. Two fire trucks, two tractors with plows, and 10 foresters were involved in extinguishing it. The blaze broke out a few hours after the drone crash. In September, this district had already recorded several fires caused by hostilities.
Foresters emphasize: do not touch weapon debris and do not attempt to extinguish fires on your own. It is vital to immediately notify the relevant services.
New equipment and the high level of preparedness of foresters make it possible to swiftly contain fires, helping to save forests and minimize the damage from attacks.
The identification, assessment, and conservation of representative areas of indigenous ecosystems (RAIE) are an integral part of the FSC standard for Ukraine.
As of August 1, 2025, under voluntary commitments, forestry enterprises or their structural divisions (management units) ensure compliance with FSC forest certification requirements across 4.726 million hectares, 96% of which are managed by subdivisions of SFE “Forests of Ukraine,” according to UkrNDILGA.
Ukrainian forestry legislation lacks provisions for the identification, assessment, and development of measures to conserve RAIE and/or restore them to a more natural state. Management units face a shortage of regulatory, methodological, and scientific tools to meet these requirements. An analysis of public certification reports from 2020–2024 audits revealed that the largest number of non-conformities related to Criterion 6.5, which is associated with RAIE (151 cases, or 10.1%).
This persistent trend points to systemic challenges in management and production activities when implementing FSC standards in Ukraine. To address these issues, SFE “Forests of Ukraine” initiated the study “Development of a Methodology for the Identification, Assessment, and Conservation of Representative Areas of Indigenous Ecosystems in Accordance with International Forest Management Standards for Ukraine,” involving scientists from UkrNDILGA.
To ensure the practicality of the RAIE methodology and incorporate existing experience, a project presentation was held from August 27 to September 4 with the support of SFE “Forests of Ukraine” for responsible staff at the branches of the Stolychnyi, Poliskyi, Tsentralnyi, and Podilskyi Forest Offices. For the Karpatskyi and Slobozhanskyi Forest Offices, the presentation was held online on August 29.
During the presentation, participants learned about approaches to defining the classification unit of “indigenous ecosystem”; practical aspects of using the best available information; and methods for identifying, assessing, and prescribing conservation measures for RAIE. A step-by-step action plan, field survey forms, documentation descriptions, and logical-structural schemes were developed.
The event format encouraged practical feedback and comments on ensuring proportional representation of indigenous ecosystems during RAIE identification. Special attention was given to updating forest inventory materials, permissible cases for revising RAIE lists, and refining measures for restoring sites to a more natural state.
Opening the hearings on the RAIE methodology project, Halyna Domashovets, Head of the Forest Certification Sector at SFE “Forests of Ukraine,” emphasized that forest certification remains the “philosophy” of forest management within the enterprise. It fosters awareness of the uniqueness of RAIE, which serve as natural laboratories for observing ecological processes, mechanisms of self-regulation, conservation of rare species, and maintenance of biodiversity.
In her view, the presentation and discussion of the methodology allow the incorporation of practical aspects of working with RAIE and make it an effective tool of forestry aligned with FSC standards in Ukraine.
Pavlo Kravets, Leading Researcher at the Department of Forest Inventory, Monitoring, Certification, and Forest Management of UkrNDILGA, stressed that the developed methodology is based on extensive practical experience of certificate holders and incorporates earlier work on manuals, FSC certification guidelines, and related webinars, seminars, and trainings.
Despite the legal definition of a forest as an ecosystem, its structural-spatial characteristics in legislation and methodology focus primarily on a single element — the stand — and on evaluating parameters relevant to forest management goals. The functional relationships between forest elements that form ecosystems remain a problematic issue. To identify RAIE, the biotope was proposed as a universal classification unit.
Establishing correspondence between forest biotopes and forest types facilitates the identification of forest ecosystem biotopes. Ultimately, integrating biotope classification into forestry will help meet the requirements of numerous international agreements and conventions, particularly those concerning the conservation of flora, fauna, and natural habitats in Europe. The appendix presented in the draft methodology, which aligns forest types across Ukraine’s natural zones with biotopes, received positive feedback from forestry professionals. They highly appreciated the potential of using forest typology and inventory materials for RAIE identification.
The document sets out a detailed sequence for identifying, assessing, and prescribing conservation measures for RAIE: a preliminary office-based stage, a field stage, and a final stage. Each stage delivers specific outcomes, culminating in the formation of the final RAIE list. The preliminary stage involves analyzing readily available information such as forest inventory materials, taxonomic descriptions, the National Biotope Catalog, and scientific publications. The field stage requires examining pre-selected sites, with the aid of proposed survey forms and photo documentation guidelines, which were well received by certification staff. The final stage serves as a conclusive verification of the RAIE list’s compliance with FSC standards for Ukraine.
The assessment section of the methodology focuses on gathering information about RAIE conditions and determining the nature of conservation measures to support or enhance their functions toward a more natural state. It includes an analysis of potential threats and negative impacts at all stages of RAIE designation. Based on this, conservation measures are proposed: passive protection for well-preserved RAIE, and active protection for sites requiring restoration. The list of acceptable and unacceptable measures under active protection sparked lively discussion due to the lack of legal support for the concept of “ecosystem indigeneity” and challenges in practical implementation.
The presentation and discussion of the methodology project demonstrated high engagement from specialists, their willingness to share experience, and their readiness to provide suggestions for improvement. Certification staff committed to submitting written feedback and proposals to be considered in preparing the final version of the methodology.
These meetings confirmed the potential for effective collaboration between science and practice in addressing complex forestry issues, moving Ukrainian forestry closer to international FSC certification requirements.
Over the past 15 years, timber harvesting volumes in Transcarpathia have almost halved — from 1.4 million m³ to 750,000 m³.
This trend began long before the establishment of SFE “Forests of Ukraine” — over the past three years, timber harvesting has remained almost at the same level. The sharp decline occurred in 2017–2020!
Against the backdrop of rising demand for timber, wood processors are asking: why is this happening, who is to blame, and is it possible to increase harvesting?
Let us analyze the situation and outline only some of the factors that have influenced forestry in Transcarpathia.
1.Since 2010, the area of the natural reserve fund in the Transcarpathian region within the Carpathian branch of SFE “Forests of Ukraine” has increased from 48.1 thousand ha to 74.6 thousand ha. Only 46% of Transcarpathian forests are designated for commercial use. 13% are part of the natural reserve fund, 14.5% are for recreational purposes, and the rest are subject to restricted forest use.
2.In 2019–2020, 16.5 thousand ha of forest plots were designated as primeval, quasi-primeval, or natural forests. All types of logging are prohibited in these areas, and protective zones at least twice the height of the primeval forest stand were established.
3.In 2019, a law was adopted banning clear-cutting in mountain fir-beech forests of the Carpathian region located above 1,100 meters above sea level.
4.According to the Law of Ukraine “On Environmental Impact Assessment” (EIA), adopted in 2017, to conduct clear sanitary or gradual logging on areas larger than 1 ha, it is necessary to obtain an environmental impact assessment conclusion. This process takes 3–6 months and costs on average UAH 350,000–450,000.
5.In 2020, Resolution No. 1224 of the Cabinet of Ministers of Ukraine amended the rules of final felling in the mountain forests of the Carpathians: narrow-strip felling may only be conducted in pure spruce stands.
As a result, today foresters operate in a completely different legal framework, and logging is significantly restricted.
Unfortunately, given current trends, the timber harvesting situation risks further deterioration!
The issue is that in most forestry enterprises of Transcarpathia, the validity of baseline forest inventory materials will expire in 2026–2027. Despite ongoing efforts by foresters, the approval of new materials constantly faces obstacles — each new change in legislation requires additional revisions and repeated approval procedures. The creation or modification of protected areas also forces Ukrderzhlisproekt to revise forest inventory materials again!
It is worth noting that starting in 2027, a ban on clear-cutting for final felling in the mountain forests of the Carpathian region will come into force, which will undoubtedly impact harvesting volumes.
The resource is objectively limited, but access to it for businesses today is maximally transparent and open. On average, over 10,000 lots are put up for the main quarterly timber auctions in Transcarpathia by SFE “Forests of Ukraine”. More than 90% of them are up to 20 m³, meaning that regardless of the size of the company, everyone has equal opportunities to compete for resources.
Buyers are guaranteed to receive the contracted volumes. In some Transcarpathian forestry enterprises, the rate of contract fulfillment for timber supply reaches 98–100%. Issues are being addressed in those forestries where contractors (due to mobilization of workers and other factors) cause a certain percentage of under-deliveries.
Is there potential to increase timber supply?
Yes, but the issue cannot be solved with populist statements. A stable regulatory framework is needed — clear rules for decades to come. Enormous investments are required for the development of forest road networks and modern environmentally friendly timber harvesting equipment. In other words, a large-scale systemic effort is necessary, based on constructive dialogue between the state, environmentalists, businesses, and foresters. SFE “Forests of Ukraine” is ready for such work.
The event was arranged to showcase how the company’s operations have changed over three years of reform.
Journalists witnessed the introduction of transparent control mechanisms at every stage of work, including:
The process of timber loading and its photo documentation carried out by employees of the Smila Timber Industrial Complex of the Chyhyrynske Forestry Management Unit, Branch «Tsentralnyi Forest Office».
The work of independent forest inventory teams and the use of modern electronic tools at a site of the Volodymyrivske Forestry Subunit, designated for selective sanitary felling.
Media representatives highlighted the openness and transparency of the processes and expressed their gratitude for the opportunity to see the real results. The first publications have already appeared, confirming that the reform is working and delivering tangible outcomes.
🔗 https://surl.li/cbggvw
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Such initiatives are an important step toward establishing continuous dialogue between the forestry sector and society. Openness and transparent communication are the foundation of trust in our common cause.
At the branch “Forest Training Center,” the forum “Occupational Safety in the Forestry Sector” took place. The event brought together occupational safety engineers from the regional branches of SFE “Forests of Ukraine”, business trainers, psychologists, scientists, and military representatives.
Over the course of five days, 60 occupational safety engineers from the enterprise attended trainings, performed practical tasks, and exchanged experiences on the key challenges they face in their work.
✔️ Leadership
One of the most important skills for an occupational safety engineer is leadership. They must train staff in safe practices during logging operations, conduct briefings, and develop instructions. It is crucial not only to respond to risks but also to prevent them. Business trainers taught participants modern approaches to leadership, teamwork, and fostering initiative in the field of workplace safety. When an engineer does not simply “control” but actively engages employees in safety initiatives, a culture of safety is formed within the team, which reduces the number of injuries.
✔️ Risk Assessment in Production
Recently, alongside the traditional briefing procedure in forestry enterprises, risk assessment in the workplace has been introduced, as required by the international occupational health and safety standard ISO 45001. Such assessments are conducted by occupational safety engineers, who receive feedback from employees while modeling potential situations. Representatives of the Academy of Risk Management Systems helped the engineers enhance their skills in developing occupational risk maps by demonstrating best practices in their preparation.
✔️ Social Adaptation of Veterans
Currently, more than 530 demobilized soldiers are employed at SFE “Forests of Ukraine.” It is important to reintegrate them into peaceful life, adapt them to work processes, and establish effective communication. Leading psychologists provided practical training on communication with veterans and methods of effective interaction.
Upon completion of the forum, occupational safety engineers received certificates confirming their professional knowledge in occupational health and safety management systems in accordance with the international ISO 45001 standard.
Together with our enterprise, other public procuring entities have also joined the community, including SE “Professional Procurements”, SE “Medical Procurement of Ukraine”, Ukrposhta, Naftogaz, Ukrtransnafta, Naftogaz Teplo, SE “State Logistics Operator”, the CPO branch of SE “Ukrainian Special Systems”, and Ukrzaliznytsia.
The Community’s objectives are:
-exchanging information on markets, suppliers, and innovative solutions to improve the quality of procurement and prevent unfair competition;
-promoting the use of modern digital tools and process automation (including artificial intelligence) for preparation, implementation, and monitoring of procurement;
-sharing experiences in testing new approaches and procurement methodologies, particularly regarding the use of non-price criteria;
-jointly supporting legislative changes to improve the regulatory framework, harmonize it with EU practices, and remove barriers to effective procurement;
-fostering joint project searches with international organizations and participation in international training programs for procurement professionals;
-providing mutual support and exchanging experience in complex projects or innovative procurements, as well as in cases of detecting signs of unfair behavior by market participants — in line with current Ukrainian legislation;
-ensuring open communication with all procurers through publishing the results of pilot projects, analytical materials, practical recommendations, and examples of successful procurements.
The founders of the Public Procurement Community signed a Memorandum on improving the efficiency and transparency of procurement processes and developing a competitive environment.
“This year we have managed to significantly improve the procurement system of SFE ‘Forests of Ukraine,’ adding efficiency and transparency to many processes. The invitation of our team to join the Procurement Community is recognition of the progress we have achieved within the professional environment of leading state-owned companies and institutions”, said Mykhailo Staietskyi, Director of the Procurement Department of SFE “Forests of Ukraine”.
The total amount of assistance paid exceeds UAH 94 million.
The compensation is provided for by the Collective Agreement of SFE “Forests of Ukraine” and is granted to certain categories of people who live in houses with stove heating.
Those who received compensation for the purchase of firewood include:
✓ more than 8,500 – company pensioners.
✓ more than 1,700 – families of mobilized employees.
✓ more than 2,300 – other categories, including:
– families of fallen soldiers;
– employees with disabilities caused by the Russian-Ukrainian war;
– single mothers or fathers;
– former employees who sustained occupational injuries;
– employees with more than 5 years of service and an average salary of less than UAH 22,000.
So, what documents are required to receive compensation?
✔ application;
✔ certificate from the village or city council confirming the presence of stove heating in the house, or an inspection report by the employer’s and trade union’s commission;
✔ copies of documents confirming belonging to a specific preferential category;
✔ copy of passport;
✔ copy of the taxpayer identification number certificate;
✔ for mobilized employees – a copy of the order of release in connection with conscription for military service during general mobilization;
✔ for employees with more than 5 years of service and an average salary of less than UAH 22,000 – a certificate of work experience in the forestry sector and a certificate of average salary.
Original applications with the required set of documents should be submitted to the Motivation Department of the regional branch, and pensioners should apply to the Primary Trade Union Organization. Applications may be submitted in person or sent by mail.
The budget received an additional UAH 4.1 billion!!
Almost one third of the total amount (UAH 3 billion) was transferred by the enterprise during August.
Compared to 2024, contributions to the state budget increased more than twofold (+123%) to UAH 7.3 billion.
The main factor of growth – record dividends (part of net profit) in the amount of UAH 2.9 billion (for 8 months of 2024, dividends amounted to UAH 123 million).
Payment of income tax increased by 67% to UAH 1.1 billion. VAT increased by 33% to UAH 2.7 billion.
More than UAH 1.53 billion was transferred to local budgets.
In total, the enterprise remitted 44% of its revenues from the sale of unprocessed timber to the budget.
The record financial and economic indicators of SFE “Forests of Ukraine” are the result of the forestry reform, which this week marks 3 years.
Thanks to the centralization of management and new control instruments, schemes for supplying illegal timber to the market were gradually blocked, unprofitable forestry processing was closed, and today the entire volume of harvested products (with the exception of firewood for the population and the social sector) is sold by SFE “Forests of Ukraine” at market price through transparent competitive exchange auctions.
Thus, the state forestry sector has gained resources for full-scale reforestation, forest protection and conservation. The state, in turn, has received multibillion contributions to the budget!