Month: May 2026
By decision of the Supervisory Board members, effective July 1, 2026, the duties of CEO of Forests of Ukraine have been assigned to Ihor Zubovych, Head of the Enterprise Transformation Commission.
Supervisory Board member Roberts Strīpnieks stated that the personnel changes would significantly strengthen the company’s management team.
“Forests of Ukraine must continue on the same course, but with new energy. Serious challenges lie ahead for the new leader, but we are ready to fully support his work. He enjoys the complete confidence of the Supervisory Board,” Roberts Strīpnieks emphasized.
According to Supervisory Board member Janne Harjunpää, the results achieved by the company’s management over the past years have been substantial, but the transformation process of Forests of Ukraine will bring new strength, new energy, and new expertise.
Ihor Zubovych noted that his goal is to introduce new approaches to managing the enterprise — more modern, transparent, and efficient.
“I thank the members of the Supervisory Board for their trust and support. The company’s priorities are, first and foremost, strengthening management transparency, modernization and the implementation of modern technologies, achieving a balance between economic and environmental interests, contributing to the state budget, and, most importantly, increasing public trust in the work of foresters,” Ihor Zubovych stated.
Following the meeting, the Supervisory Board also initiated preparations for a competitive selection process for the position of CEO of Forests of Ukraine.
To conduct the competition, the company is required to engage a professional executive recruitment consultant, as well as develop and submit to the Supervisory Board the competition procedures and candidate evaluation criteria for approval.
In addition to personnel matters, the Supervisory Board approved the report on the implementation of the financial plan of the State Specialized Enterprise “Forests of Ukraine” for the first quarter of 2026, as well as an interim report on achieving the objectives defined in the Owner’s Expectation Letter for 2026.
The Supervisory Board also took note of the following: the CEO’s report on the efficiency of state property and profit management for Q1 2026, the results of the analysis of the organizational structure of Forests of Ukraine, and the independent auditor’s report on the company’s financial statements for 2022–2024.
The Supervisory Board instructed the company to conduct an independent audit of its 2026 financial statements and approved the procedure for selecting audit service providers through a competitive process.
The Supervisory Board also recognized the necessity of implementing a unified ERP (Enterprise Resource Planning) system within the company — software designed for comprehensive automation and management of all company resources.
The unified ERP system is expected to serve as a key tool for transforming business processes, improving management quality, increasing accounting transparency, accelerating management and financial reporting, and reducing the risks associated with outdated and sanctioned software.
According to Supervisory Board member Markiian Vytvytskyi, extensive preparatory work has already been carried out to ensure maximum detail in the ERP implementation process, and the company is now ready to launch the first phase.
Detailed information on the forest products that Forests of Ukraine will offer to wood processors, households, social institutions, and the Armed Forces of Ukraine in the second half of the year is now publicly available on the company’s website.
As known, at the beginning of each year, Forests of Ukraine publishes its assortment plan and the assortment structure of forest products scheduled for sale.
From now on, the information will become even more detailed. We are additionally publishing harvesting and sales plans broken down by quarterly and forward auctions, as well as by volumes and quality classes of forest products.
Our goal is to increase predictability and balance in the timber market, stabilize prices, and improve contract fulfillment rates among wood-processing companies.
Overall, in the second half of the year, Forests of Ukraine plans to offer consumers nearly 6.3 million m³ of forest products.
More than 1.7 million m³ have been reserved for households, the social sector, and defense needs. These products will be supplied either at social prices or free of charge for the Armed Forces of Ukraine.
Nearly 4.6 million m³ of forest products are planned to be offered through quarterly and semi-annual auctions. This volume will be distributed almost equally between the Q3 and Q4 auctions and forward semi-annual auctions.
Forward contracts for the second half of the year will begin on Monday, May 18, while the auction session for Q3 resources will start on Tuesday, May 19.
The auction schedule is available here.
The production infrastructure is already in place; however, harmonization of Ukrainian legislation with European standards and the introduction of an appropriate certification system are still required.
Legislative amendments were discussed during a meeting attended by Chairman of the Verkhovna Rada Committee on Environmental Policy Oleh Bondarenko, Members of Parliament, Deputy Minister of Economy Taras Vysotskyi, Head of the State Forest Resources Agency Viktor Smal, and Head of the Transformation Commission of State Enterprise “Forests of Ukraine” Ihor Zubovych.
Two years ago, in April 2024, the Ukrainian Parliament adopted as a basis Draft Law No. 9116 “On Forest Reproductive Resources,” which regulates the production and use of seeds, seedlings, and saplings of forest trees. The document introduces a legal framework for registration, monitoring, and quality control of forest reproductive materials in line with European legislation and standards.
As noted by Ihor Zubovych, Draft Law No. 9116 serves as a foundation for the further development of forest seed production in Ukraine, particularly the expansion of a network of modern seed and breeding centers. The enterprise already operates nine such centers, with total production capacity expected to reach 25–30 million seedlings annually in the near future. Investments in expanding the network in 2026 alone will amount to UAH 270 million.
Naturally, the priority remains the domestic market — producing high-quality planting material with a high survival rate for reforestation in de-occupied and war-affected territories. At the same time, Ukrainian products have every opportunity to compete successfully on the European market.
The meeting was deliberately held in Kipti, Chernihiv region, where the first phase of Ukraine’s largest seed center for growing container-grown seedlings with a closed root system began operations this spring. Construction of the second phase — outdoor growing fields — is currently underway, while the third phase, consisting of greenhouses, is scheduled for next year. Once completed, the facility will provide 8 million planting slots. Expanding the center’s capacity will enable plans for entering the EU market.
The participants also discussed legislative changes related to the corporatization process of State Enterprise “Forests of Ukraine”.
Since the beginning of the year, nearly 80,000 m³ of timber worth more than UAH 335 million has already been delivered to meet the needs of Ukraine’s Defense Forces. The average supply volume amounts to around 750 m³ per day — approximately 19 railway wagons of forest products daily.
Compared to last year, supply volumes have increased significantly. In the first quarter of 2026 alone, more than 50,000 m³ of timber was delivered to the Armed Forces of Ukraine — eight times more than during the same period in 2025.
The supply process is carried out through an organized cooperation system between the military and State Enterprise “Forests of Ukraine”.
First, military units identify their needs and submit requests. The enterprise then processes all applications and distributes them among its regional branches.
The largest volumes of forest products are shipped from the resource-rich Polissia, Capital, Carpathian, and Northern branches. Most of the supplies consist of coniferous species, with the highest demand for small-diameter timber.
The timber is delivered to frontline regions — Sumy, Kharkiv, Donetsk, and Zaporizhzhia — where it is critically needed for the construction of defense lines and other protective structures.
All timber is provided free of charge. State Enterprise “Forests of Ukraine” covers the costs of harvesting, transportation to railway stations, wagon loading, and also pays all taxes and fees to the state budget.
Another important area of work is supplying the military with firewood for heating.
Despite the end of the heating season, the housing and maintenance departments of the Ministry of Defense have already started preparations for the next winter and are conducting procurement through the Prozorro system. Once funding is allocated, tenders are announced, and the branches of State Enterprise “Forests of Ukraine” participate in them. The enterprise provides all necessary information regarding available volumes, delivery terms, and shipment capacities.
Since the beginning of 2026, the company’s branches have signed contracts with the Ministry of Defense’s housing and maintenance authorities to supply around 70,000 m³ of firewood. To date, more than 34,000 m³ of products have already been delivered.