Last year, the forestry industry received UAH 6.9 billion in net profit, which is UAH 4.4 billion more than in 2024. This was announced by Viktor Smal, head of the State Forestry Agency, during the annual public report for 2025.
“In 2025, timber worth UAH 30.4 billion was sold, which is UAH 6.7 billion more than last year. The net profit of the industry amounted to UAH 6.9 billion, which is UAH 4.4 billion more than in 2024,” said the head of the State Forestry Agency.
Thus, the growth in profit significantly outpaced the growth in revenue.
The State Forestry Agency believes that this result was achieved thanks to the reforms and digitalization of the industry, even despite the fact that during the war there was a reduction in the areas available for management.
“Before the reform in 2020, when there were more resources and less extreme working conditions, the industry managed to earn only UAH 0.2 billion — almost 35 times less. This is the best proof that the reforms we have carried out have proven their effectiveness,” said Viktor Smal.
Also, according to him, in 2025, the profitability of forestry sector enterprises was 22.8% — 12.3% more than in the previous year, and the average salary increased by almost UAH 6,000 and currently stands at over UAH 30,000.
“Another indication of the success of the forestry sector reform was the amount of taxes paid. In 2025, UAH 16.1 billion was transferred to the budget, which is UAH 6.8 billion more than in the previous year. This is an absolute record in the history of independent Ukraine. And I am proud of this result, which was achieved through the diligent and systematic work of 24,000 employees in the industry,“ concluded the head of the State Forestry Agency.
As noted by the head of the State Enterprise ”Forests of Ukraine” Yuriy Bolokhovets, the economic results of 2025 were influenced not only by positive market conditions. There was an increase in the percentage of competitive procurement by the enterprise. For the first time, 97% of the procurement budget of the State Enterprise “Forests of Ukraine” was directed to Prozorro, resulting in savings of over UAH 700 million. Reorganization was also carried out, and administrative staff was optimized.
The team at State Enterprise “Forests of Ukraine” is constantly faced with pressure and attempts to lobby for the pre-reform opaque system of forest product sales. However, the company sells timber (except for firewood for the population and the social sector) exclusively through open auctions. Data on concluded exchange agreements for the purchase of timber is now fully open.
“The increase in forestry revenues means record growth in budget contributions, the restoration and protection of Ukrainian forests from fires, support for the Armed Forces of Ukraine, investments in infrastructure development, and technical re-equipment of forestry. Before the reform, profits were lost, but today financial flows have been de-shadowed and work in the interests of the state and the industry,” said Yuriy Bolokhovets.
The area affected by forest fires in Ukraine has decreased fourfold this year. The area affected by fires in the forests of the State Enterprise “Forests of Ukraine” (excluding the Izyum Forestry) amounted to only 1.5 thousand hectares, compared to 6 thousand hectares in 2024. This was reported by the head of the enterprise, Yuriy Bolokhovets.
According to him, since the beginning of the year, forest fires in the European Union have destroyed more than a million hectares of forest, which is a record for the last twenty years. For example, in Ukraine’s neighbor Romania, 126,000 hectares of forest land have burned down. In Ukraine, military factors are added to the negative climatic factors – a significant proportion of fires are associated with rocket and drone strikes. However, the percentage of forest loss due to fires is an order of magnitude lower than in the EU.
The most problematic remains the Izyum Forestry, which this year included three de-occupied forestries in the Kharkiv region. Last year, almost 13,000 hectares of forest burned down here. After joining the State Enterprise “Forests of Ukraine,” the company notes that new firefighting equipment and tools were transferred to the forestry enterprises, and the salaries of forest protection workers were increased. As a result, the area affected by fires in the Izyum Forestry was reduced by almost 8 times to 1,800 hectares.
The State Enterprise “Forests of Ukraine” explains that the reduction in the area affected by fires was achieved thanks to the purchase of new firefighting equipment. This year, dozens of new forest firefighting modules were sent to most of the company’s branches, which are capable of reaching places that large fire trucks cannot access. Recently, new tenders were announced for the purchase of 50 modules to be installed in pickup truck beds and 20 trailer platforms with pre-installed forest firefighting modules.
The salaries of forest protection workers have also been increased by an average of 20%.
Over the past two years, the State Enterprise “Forests of Ukraine” has set up more than 100 new modern recreation centers, the presence of which significantly reduces the risk of fires caused by human factors. Another 50 have been opened this year. According to the company, these are full-fledged complexes for safe leisure in the forest with all the necessary infrastructure (children’s and sports grounds, water, electricity, changing rooms, barbecues, etc.).
In addition, foresters continue to make large-scale investments in firefighting infrastructure. This year, 38,800 km of mineralized strips were installed and 183,400 km of existing ones were maintained. The State Enterprise “Forests of Ukraine” maintains 3,500 fire reservoirs, equips them with piers, and installs water storage tanks so that even in hot weather, each reservoir has the necessary water supply.
Work is continuing on the purchase and installation of 30 new television surveillance systems and the construction of 24 new observation towers. The goal is to completely cover forest areas with a high risk of fire with a video surveillance system. In total, the company operates almost 500 such towers.
To prevent large-scale fires in the future, Lisy Ukrainy has refused to plant pure coniferous stands, creating exclusively mixed forests of coniferous and deciduous species, which are more resistant to climate change and less vulnerable to fires.
