Month: June 2026
The corporatization of SE “Forests of Ukraine” was one of the key topics discussed during a meeting between FSC Ukraine and certificate holders held as part of the International Forestry Forum in Lviv.
Within the framework of the 27th International Exhibition Woodworking 2026, FSC® Ukraine organized an open discussion titled “Supporting Dialogue for the Sustainable Development of Ukraine’s Forest Sector.” One of the central issues on the agenda was the transformation of SE “Forests of Ukraine” into a joint-stock company and the implications of this process for the forestry sector.
Particular attention was given to the preservation of FSC certification throughout the corporatization process.
Today, SE “Forests of Ukraine” manages 6.9 million hectares of forest land, of which 4.6 million hectares are FSC-certified.
FSC certification remains one of the key prerequisites enabling wood-processing companies to export their products to European markets, where traceability and responsible sourcing of timber are mandatory requirements.
Ihor Zubovych, Head of the Transformation Commission of SE “Forests of Ukraine,” who attended the FSC event, emphasized that corporatization involves a change in the enterprise’s legal status—from a state-owned enterprise to a joint-stock company with 100% state ownership.
At the same time, the essence of the company’s activities, its functions, responsibilities, and approaches to forest management will remain unchanged.
The corporatization process does not envisage any changes to the management system of certified forests. The superintendencies (nadlisnytstvas) will continue to serve as FSC certificate holders, ensuring uninterrupted compliance with all requirements of the international standard.
The company is maintaining transparency throughout the transformation process and is proactively informing the FSC Ukraine office and other bodies within the voluntary forest certification system about each stage of the transition.
Cooperation between SE “Forests of Ukraine” and FSC Ukraine remains constructive and focused on strengthening and expanding the forest certification system.
“SE ‘Forests of Ukraine’ has demonstrated openness in discussing corporatization, showing its readiness to address the challenges associated with this transformation while building transparent partnerships with the market and thereby strengthening supply chains. For our part, we will contribute to this process by fostering constructive dialogue and ensuring predictability in the development of FSC certification,” said Pavlo Kravets, Director of FSC Ukraine.
In accordance with Ukraine’s State Forest Management Strategy, the company plans to increase the area of certified forests by the end of 2027.
Microsoft Ukraine to Support the Digital Transformation of the State Enterprise “Forests of Ukraine”
A Memorandum of Strategic Cooperation was signed by Ihor Zubovych, Head of the Transformation Commission of the State Enterprise “Forests of Ukraine”, and Yevhen Kahanovskyi, Country Manager of Microsoft Ukraine.
The key areas of cooperation include the implementation of advanced corporate artificial intelligence (AI) tools, cybersecurity, data protection, and staff training. According to Yevhen Kahanovskyi, Microsoft will provide advisory support to the State Enterprise “Forests of Ukraine”, drawing on successful digital transformation experience from similar organizations in other countries.
“You can be confident that the enterprise’s data will remain fully under your control, while all information will be integrated into a single structured system. This will create opportunities to implement modern corporate services based on AI technologies in the future,” said Yevhen Kahanovskyi.
Ihor Zubovych emphasized that the development of the State Enterprise “Forests of Ukraine” is inseparably linked to the digital transformation process. New technologies offer businesses remarkable opportunities: artificial intelligence can automate management processes, increase efficiency and transparency, free up human resources, and optimize costs.
“Our enterprise needs to move significantly faster. It is important to relaunch this area of work and eliminate existing gaps by relying on the advisory support of leading technology companies and on solutions that have already proven successful in developed countries. I would like to thank Microsoft Ukraine for its willingness to support the digital transformation of ‘Forests of Ukraine’, particularly by providing global expertise in data protection and the implementation of AI tools,” said Ihor Zubovych.
A year ago, in late May 2025, the Supervisory Board of Forests of Ukraine SE initiated independent audits of the company’s annual financial statements and approved the auditor selection criteria.
The Board explained its decision by stating that “society must be confident that the company’s performance results correspond to the reported figures.” In addition, conducting an independent audit is an integral part of the corporatization process of Forests of Ukraine SE.
The audits have now been completed, and the reports have been published on the company’s website.
The financial statements for 2022–2024, prepared in accordance with the National Accounting Standards of Ukraine (NAS), were audited by Grant Thornton Legis, a member of Grant Thornton, one of the world’s leading networks in audit, tax, and business advisory services.
The auditor confirmed that the financial statements were prepared, in all material respects, in accordance with the requirements of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine.”
The independent audit of the 2025 financial statements was conducted by Crowe Erfolg Ukraine, a member of Crowe Global, the world’s eighth-largest accounting, audit, and consulting network. Since Forests of Ukraine SE adopted International Financial Reporting Standards (IFRS) as of January 1, 2025, the audit for that period was performed in accordance with IFRS requirements.
According to the audit report, “the financial statements of Forests of Ukraine SE present fairly, in all material respects, the financial position of the company, its financial performance, and its cash flows.”
The auditors also noted several observations, including limitations related to information on the historical cost of certain assets. Part of the property transferred to the company from former state forestry enterprises was originally established during the Soviet era, and in some cases the primary documentation has been lost.
Nevertheless, Forests of Ukraine SE successfully passed independent audits of its financial statements for all four years of operation.
In particular, the independent audits confirmed revenue growth from UAH 22.7 billion in 2023 and UAH 23.0 billion in 2024 (under NAS) to a record UAH 29.9 billion in 2025 (under IFRS).
The audits also confirmed an increase in net profit from UAH 3.0 billion in 2023 and UAH 2.8 billion in 2024 to UAH 6.9 billion in 2025.