The largest state forest enterprise in the country will be transformed into a joint stock company.

 

Here are answers to some of the most frequently asked questions:

 

1.Who will oversee JSC “Forests of Ukraine”?

 

This issue will be regulated by the Cabinet of Ministers of Ukraine. “Forests of Ukraine” is not only about timber harvesting and sales. During the corporatization process, the enterprise will retain its functions of forest protection and security — the State Forest Guard will continue to operate as part of the company.

 

2.Why does the company need external financing?

 

Corporatization opens the possibility of attracting funding from international donors. Several key areas for investment are currently under consideration.

 

One of the most pressing issues for “Forests of Ukraine” is the modernization of firefighting equipment.

 

Over the past two years, the enterprise has purchased and equipped a large number of mobile fire modules based on pickup trucks, which have helped save Ukrainian forests from severe fires despite constant shelling and drone or missile attacks. However, renewal of the fleet of large fire trucks is now urgently needed.

 

The company also needs dozens of units of equipment for mechanized logging and processing of logging residues. In Ukraine, only a few percent of harvesting is mechanized, whereas in European countries this figure exceeds 50%.

 

“Forests of Ukraine” is actively constructing new forest roads, which is essential for increasing harvesting volumes and reducing costs.

 

However, without substantial funding, it is impossible to reach the road network density of forestry enterprises in Poland, Austria, or Germany.

 

3.How long will the transformation take?

 

The transformation plan is currently under approval. The process includes inventory, preparation of a transfer act, and other required procedures — all of which may take at least one year.

 

4.Who will own the forests?

 

The state forest fund remains state property. Forests will not be included in the authorized capital of JSC “Forests of Ukraine.”

The company will remain a permanent forest user.

 

The market for forestry services — including logging, forest maintenance, and road construction — will continue to develop. However, 100% of the company’s shares will remain state-owned.

 

This reflects the European philosophy of forest management: operational work is outsourced through tenders, while planning, organization, and control remain in the hands of the state-owned company.