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An on-site assessment of the storm’s aftermath in the Rivne Region was conducted directly in the forest. The field meeting was convened by Serhii Chupryna, Director of Branch “Poliskyi Forest Office” of SFE “Forests of Ukraine.” Participants included Volodymyr Buchko, First Deputy Head of the State Forest Resources Agency of Ukraine; Oleksandr Kokhan, Deputy Head of the Rivne Regional Military Administration; Mykola Kucheruk, First Deputy Chair of the Regional Council; Volodymyr Zakharchuk, Head of the Department of the State Emergency Service of Ukraine in the Rivne Region; Oleksandr Koshyn, Head of Branch “Rivnelisozakhyst” of SSFPE “Kyivlisozakhyst”; as well as ecologists, researchers, wood processors, and journalists.
WHAT IS THE PROBLEM
The storm destroyed over 700 hectares of forest in Kostopilske Forestry Management Unit. Yet, the enterprise cannot swiftly begin remediation of windthrow damage on more than 200 hectares—due to the legal requirement to undergo an Environmental Impact Assessment (EIA). This delay introduces a new set of risks: economic, environmental, and managerial.
Eighty-one forest plots across seven forestry units of Kostopilske Forestry Management Unit were affected. In eighteen plots, 90–100% of the stands were damaged—more than 200 hectares requiring clear-cutting. Another 63 plots exhibit damage levels of 25–80 %. Throughout many areas, trees were snapped in half or uprooted. The most severely affected species were pine, oak, alder, and birch.
LOSSES
The EIA procedure lasts at least 4–6 months and costs up to UAH 1 million. During this period, the timber loses its commercial quality. For pine, the share of merchantable assortments falls from 60 % to zero within five months. The same applies to birch and alder. Had remediation works begun immediately, the enterprise could have earned up to UAH 288 million in revenue. After the delay, only UAH 147 million will be recovered. Losses will total UAH 141 million, and the state will undercollect at least UAH 55.5 million in taxes and rent payments.
Serhii Chupryna emphasized the critical impact that delays in addressing the damaged areas have on the forest ecosystem and the economy: “We have hundreds of hectares of destroyed forest—this is not a planned harvest but the aftermath of a natural disaster. These are already environmental losses—significant areas have been affected. But right now, it is crucial to prevent economic losses and remove the timber in a timely manner. Yet this is impossible because of the requirement to undergo the EIA procedure.”
Volodymyr Buchko drew attention to the contradiction between the law’s intent and its effect in emergencies: “This is a case where a law designed to protect the environment instead creates new threats. We need legislative flexibility in such circumstances, and we are working on it.”
Oleksandr Kokhan highlighted the economic losses and risks to local communities: “This storm is not only an environmental disaster but an economic one as well. We must act swiftly and within the law. This issue concerns not only the forestry and wood-processing sectors but also the environment and the stability of local budgets. The quality of the timber declines by the day. If we delay, we will exacerbate fire risks and economic losses. We are working together with all levels of government.”
Oleksandr Savytskyi emphasized the critical situation for the wood-processing sector: “We specialize, among other things, in processing high-quality birch and alder—precisely those species that very quickly lose their merchantable properties. And right now, when the timber market is in acute need of additional volumes, losing this valuable resource to bureaucratic hurdles is absurd. This is a blow not only to producers but to the entire economy, which requires stability and rapid decisions.”
The State Emergency Service and ecologists warn of an elevated risk of forest fires. Scientists caution that the damaged areas provide an ideal environment for pest proliferation. Without timely intervention, there is a risk of disease spread to healthy stands.
An obvious solution, but lost opportunities
In cases of natural disasters, the EIA procedure almost always yields a positive conclusion. Yet even this predictable formality is delayed, consuming time and money. Every month of postponement translates into losses—of resources, finances, and environmental integrity.
As a result of the meeting, it was agreed to prepare joint appeals to the Verkhovna Rada and the Cabinet of Ministers of Ukraine regarding the regulation of procedures for addressing the aftermath of emergency situations in forests.
At the Q3 auction sales, the price of industrial‐use firewood rose by approximately 20%.
Softwood species increased on average to UAH 1,650 per m³, coniferous species to UAH 1,830 per m³, and hard broadleaf species to UAH 1,900 per m³.
Household consumers need not worry— “Forests of Ukraine” will continue to supply firewood at social prices.
Currently, the average price for non-industrial firewood (oak, hornbeam, and other hardwoods) is UAH 1,140 per m³; for the second group (pine and others), UAH 923 per m³; and for the third group (willow, poplar), UAH 824 per m³.
Social prices, as before, cover only production costs and taxes. Compared to last summer, the price has changed by no more than UAH 100 per m³.
This is solely due to increased harvesting costs — we were forced to raise the maximum rates for harvesting crews.
Social prices do not even include the costs of forest restoration activities—these are covered by SFE “Forests of Ukraine.”
We urge Ukrainians not to wait for the start of the heating season and to purchase firewood now, during summer.
Buying firewood is now an entirely transparent process. We cash payments and moved to online transactions to eliminate corruption risks. You no longer need to visit the bank and wait in line to make a payment.
Firewood of all grades is currently in stock at the forestry units, and there are no queues. By winter, the wood will have had time to season, significantly boosting its heat output.
In 2024, we launched a distance-learning platform. At that time, 2,400 employees joined its training programs. Today, the number of users has doubled—nearly 5,000 employees are learning and developing alongside us.
Who needs this?
– New employees – to adapt quickly, familiarize themselves with company rules and structure, and understand the specifics of their work.
– Current staff – to upgrade their qualifications and acquire new knowledge and skills.
Access to the training platform is available to both central office staff and branch employees—not only administrative and management personnel, but also operational specialists: heads of forestry management units, their deputies, and foresters.
To members of the personnel reserve—who are preparing for leadership positions and require additional training.
To the company as a whole, since qualified and motivated employees form a team capable of responding effectively to challenges, implementing innovations, and driving the enterprise forward.
The number of courses on the portal is continually growing, as the enterprise invests in the development of its people.
To date, over 20 training programs are available, including:
– management and leadership
– time management
– communication and collaboration
– occupational health and safety
– software applications
– professional competencies for various positions.
“Professional growth of employees is not only a demand of our time but also a prerequisite for the development of the enterprise itself. That is why we continuously refine our learning tools and encourage the team to keep learning,” said Kostiantyn Voitsekhovskyi, Director of the Personnel Department.
Training takes place online in a convenient format—no travel required, at any time and from any device: computer, tablet, or mobile phone.
“The main auctions for the third quarter have concluded. Key results:
– Nearly the entire volume of round timber—98%—was contracted. Firewood for industrial use—94%. These are record figures; this has never happened before.
– The strongest price dymanic compared with Q2 was in the alder–birch segment, where average prices per cubic metre reached nearly UAH 8 000. Oak has crossed the “psychological threshold” of UAH 20 000 per m³, and ash prices rose by 30% to UAH 6 600 per m³. Pine and fir prices remained virtually unchanged. On average, price growth for round timber has slowed to approximately 6% compared with Q2.
– Prices for industrial‐use firewood have risen by more than 20%. All segments—coniferous, hardwood, and softwood—have increased by roughly the same margin. Prices for non-industrial fuel wood have climbed on average to UAH 1 550 per m³. This is a signal to the public: don’t wait for autumn—stock up on firewood this summer at the social-price rates that SFE “Forests of Ukraine” keeps stable!
– Important! SFE “Forests of Ukraine” established Q3 starting prices using a new algorithm. This was a step toward supporting business. The starting prices have not only fallen significantly compared to actual sales prices—but for round timber they have even decreased relative to the Q2 starting prices (see infographic)! However, as we can see, auction participants quickly restored the balance—once again confirming that in an open market under free competition, the starting price does not influence the final sale price.
I can’t help but mention the forward auctions for the second half of the year, which were held prior to the main Q3 auctions.
For the forward auctions, as promised, we offered 30% of the planned harvest. In the end, 96% of round timber and 91% of industrial‐use firewood were contracted.
But the key takeaway is that the forward‐auction winners didn’t lose out. Most product categories—starting with industrial-use firewood—saw price increases in the Q3 auctions.
Thus, the semiannual forward auctions we introduced have given wood processors a genuine opportunity to plan production by securing both the price and the volume of the resource”, said Yurii Bolokhovets.
Representatives of SFE “Forests of Ukraine” participated in the Steering Committee meeting of the Swiss-Ukrainian “Anti-Corruption and Asset Recovery Support” project (ACARSU).
The discussion covered interim results of the collaboration, future directions for cooperation, and the development of Ukraine’s new Anti-Corruption Strategy for 2026–2030.
In the course of the event, the Basel Institute on Governance presented information on the results of its cooperation with Ukrainian partners, including SFE “Forests of Ukraine” (the Institute and SFE “Forests of Ukraine” signed a memorandum of cooperation last year).
During 2024–2025, the Institute conducted an analysis of corruption risks within the governance system of SFE “Forests of Ukraine,” including its HR functions and procurement processes. Internal anti-corruption provisions were refined, and a number of risk-minimization recommendations were issued—some of which have already been implemented.
For example, the Basel Institute on Governance noted that the audit function does not operate as an autonomous, independent unit but is integrated into the Department of Security. This creates a risk of compromising the guarantees of internal auditors’ independence and opens the possibility of unlawful influence on their decision-making and audit conclusions.
The recommendation has been implemented: the Audit Division now functions as a separate organizational unit.
Among other measures, the distribution of functional responsibilities within the enterprise’s management has been revised to prevent an excessive concentration of authority in any one individual.
Representatives of the Institute also pointed to the high risk of interference in the enterprise’s operations by state authorities. As of this year, an independent governing body—the Supervisory Board of SFE “Forests of Ukraine”— has been established.
Cooperation between SFE “Forests of Ukraine” and the Basel Institute continues. Planned for 2025–2026 are: an assessment of corruption risks in the forestry sector, measures to minimize risks in procurement, and training on conducting internal investigations.
For reference
The Basel Institute on Governance is an independent non-profit organization specializing in anti-corruption and asset recovery. The Institute provides technical support to Ukrainian institutions, in particular in the areas of strategic risk analysis, implementation of digital tools, staff training, and the development of solutions for effective governance.
“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.