25.08.2025
Three years of forest reform — three years of fighting shadow schemes and corruption

Recently, law enforcement agencies have released many figures indicating a large number of criminal proceedings related to violations of forestry legislation.

 

State Enterprise Forests of Ukraine makes up only two-thirds of the country’s forestry sector, so we are not in a position to comment on the overall situation. However, it is worth noting that, unlike in pre-reform times, most violations in enterprises and structural divisions are now detected by Forests of Ukraine itself.

 

In 2024, the Department of Internal and Economic Security of the enterprise submitted 522 reports on identified violations of the law to law enforcement agencies, and 102 individuals were officially notified of suspicion.

 

In less than 8 months of 2025, 290 reports were submitted, and 182 individuals were charged.

 

In total, over one and a half years: 800+ reports and 284 suspicions!

 

As for material damage, only this year the Department recorded illegal logging of 16.6 thousand m³ worth almost 368 million UAH. The scale of logging has not increased — rather, violations are now documented more thoroughly, while in previous years they might have been concealed.

 

These figures fully correlate with the data announced by law enforcement agencies regarding the number of indictments submitted to court, individuals prosecuted, and damage caused.

 

The most high-profile cases reported by law enforcement agencies were documented through cooperation between the Department of Internal and Economic Security (DIES), other law enforcement bodies, and the Specialized Environmental Prosecutor’s Office. For example, last year it was the Department that discovered interference in the functioning of the Electronic Timber Accounting System, providing law enforcement with the leads that uncovered the entire criminal chain.

 

Illegal construction, schemes in land allocation for logging, misuse of sanitary logging permits, product misclassification during shipment, and fake work completion reports — all of this is being identified by the internal security unit of Forests of Ukraine in close cooperation with law enforcement and supervisory authorities.

 

Forest reform is not a magic wand that could instantly change the “corporate culture” built up in forestry over decades. But the fact is that during the years of reform, the enterprise has managed to establish an effective system of combating abuses.

 

The result is the ongoing process of market legalization. In particular, for the fourth consecutive quarter, demand for legal timber sold at exchange auctions has been steadily increasing.

 

In the first half of the year, Forests of Ukraine increased budget revenues by 40%, adding 1.7 billion UAH. The positive trend continues, meaning the results of the second half of the year will be even more impressive.

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