One of the achievements of the first stage of the forest industry reform is the consolidation of assets, the launch of a digital chain of traceability of wood movement and increased transparency of the industry. As a result, there is an increase in tax payments to the state budget and investments in development. The last stage of the reform is the corporatization of the enterprise of the state enterprise “Forests of Ukraine”.
This was noted by the Minister of Economy, Environment and Agriculture of Ukraine Oleksiy Sobolev.
In particular, the growth of wood in Ukrainian forests is many times greater than what is used. While in neighboring EU countries 90% of the growth is used, in Ukraine – less than half. On the other hand, the total forest cover of Ukraine is 15%, while in neighboring countries – twice as high.
“The state enterprise “Forests of Ukraine” uses about 70% of the country’s forest fund. The corporatization of the enterprise will provide an opportunity to attract investments and continue the growth of the industry. Also, among the next steps are increasing the harvest and directing additional funds to the creation of new forests. This is a key task for 2026,” the minister emphasized.
The Ministry of Economy has already developed a plan of measures aimed at increasing the harvest. This year, an increase of 1.3 million cubic meters is planned. Until 2028, annual harvest may increase by 5 million cubic meters. Ukrainian wood processors have the capacity to process twice as much resource as is happening now.
As Oleksiy Sobolev noted, the increase in timber harvesting would occur, in particular, due to deregulation – simplification of overly regulated permit procedures. The second direction is investments in mechanized harvesting. “Forests of Ukraine” plans the largest purchase of specialized harvesting equipment at its own expense.
“The state enterprise “Forests of Ukraine” is implementing European management methods – natural forestry. Clear-cut fellings will replace re-forming fellings, which improve the forest. Instead of artificial plantings, more natural mixed forests of coniferous and deciduous tree species are being formed. That is, an increase in harvesting will not mean a decrease in forest cover,” Oleksiy Sobolev emphasized.
The minister noted that the Government was guided by the EU experience and sought to maintain a balance between the environmental and economic components in forestry. (Economy Ministry)