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 state-owned enterprise “Forests of Ukraine” plans to allocate UAH 400 million to upgrade its material and technical base and firefighting infrastructure in preparation for the fire-hazardous period of 2026, the company announced on Facebook.
“This year, we are tripling our investments compared to last year. We plan to purchase 16 large Ukrainian-made fire trucks, nearly 2,000 fire hoses, about 700 backpack sprayers, and dozens of forest firefighting units. The priority is to support frontline forestries operating in conditions of the greatest military risk,” the statement said.
This year, the state-owned enterprise also plans to equip 29 new observation towers with television systems and completely renovate 18 existing ones.
In addition, plans for 2026 include the creation of 31,000 km of new mineralized strips and the maintenance of 140,000 km of existing ones. To carry out this work, the company will purchase 42 special forest plows.
At the same time, Lesy Ukrainy will retrain its personnel: more than 2,000 employees will undergo training in the Forest Firefighting Manager and Forest Firefighter programs, and in the spring, joint training with the State Emergency Service will take place in the Poltava, Cherkasy, and Lviv regions.
A separate area of work will be the expansion of the network of recreational areas for safe recreation. State Enterprise “Forests of Ukraine” plans to build 50 such facilities in areas with a high risk of fire and significant tourist traffic. The largest number of sites is planned to be created in the Sumy, Chernihiv, and Carpathian regions, as well as in the Kyiv, Zhytomyr, Odesa, and Mykolaiv regions.
Last year, the company managed to reduce the area of forest fires by half compared to 2024. State Enterprise “Forests of Ukraine” is one of the largest forest users in Europe, managing a state forest fund covering an area of 6.6 million hectares.
The state-owned enterprise Lisy Ukrainy plans to implement more than 60 projects for the construction and reconstruction of forest roads with a total length of more than 200 km in 2026, the company’s press service reported.
“Only paved roads can ensure stable production in any season. Our investment plan is aimed at ensuring energy independence and uninterrupted timber supplies, especially during the spring mud season, which usually paralyzes traffic on dirt roads,” the state-owned enterprise wrote on its Facebook page.
According to the plan, the largest number of facilities are planned in the Carpathian (19), Polissya (15), and Capital (11) forest offices. New construction is also planned in the Northern, Podolsk, and Central regions. The projects involve the creation of roadways and the construction of intermediate warehouses for the storage, sorting, and shipment of forest products.
As an example of the economic effect, the company cited the Ozernyansky Forestry (Ivano-Frankivsk region), where, thanks to the new road, the annual harvest will increase from 15,000 cubic meters to 17,000 cubic meters. In the Zhubrovitsa Forestry (Zhytomyr region), construction will allow 1,000 hectares of the Forest Fund, which were previously only accessible during periods of frost or drought, to be used for economic activities.
In addition to production indicators, the projects have social significance. In particular, in the Lyuboml district of Volyn, a new road between the villages of Borove and Sokol will shorten the route for local residents by 15 km, which will significantly facilitate logistics and access to firewood.
CONSTRUCTION, forest roads, Forests of Ukraine, RECONSTRUCTION
Since the beginning of 2026, Lesy Ukrainy has harvested 244,000 cubic meters more timber products than in the same period in 2025, the state-owned enterprise’s press service reported on its Telegram channel.
According to the report, the pace of harvesting has increased by 44%. The work is being carried out ahead of schedule, despite unfavorable weather conditions – snowfalls and severe frosts.
At the same time, Lesy Ukrainy noted that businesses are choosing contracted products with a certain delay. The main reasons are the lack of electricity and logistics problems, in particular due to enemy attacks on the railway in some northern regions.
“We are in constant contact with our customers. In general, businesses are not refusing products, but are proposing to revise shipment schedules,” the state-owned enterprise noted.
Currently, there is an increase in the stock of certain types of timber in warehouses, but this is not critical for the winter period. The company has decided not to slow down the pace of harvesting, strictly adhering to its commitments for 2026. Lesy Ukrainy added that further developments will depend on the buyers of timber products.
State Enterprise “Forests of Ukraine” has proposed increasing its investment plan for 2026 to UAH 4.1 billion, of which more than UAH 2.1 billion is planned to be spent on Ukrainian-made goods and services. The updated investment program will be focused on supporting the state policy “Made in Ukraine,” according to a Facebook post by the state-owned enterprise’s CEO, Yuriy Bolokhovets.
He noted that UAH 380 million has been allocated for the purchase of firefighting equipment in the investment program of the State Forestry Agency of Ukraine. He emphasized that 95% of these funds can be received by Ukrainian enterprises that manufacture fire trucks, modules, video surveillance masts, special clothing, and equipment.
UAH 80 million has been allocated for forest restoration equipment (disc harrows, mulchers, seeders). The company is ready to allocate another UAH 100 million for the purchase of Ukrainian-made trailers, semi-trailers, and trawls.
At the same time, the CEO of Lisiv Ukrainy noted that modern logging equipment (harvesters, forwarders) is not yet produced in Ukraine, so they plan to purchase it directly from European manufacturers.
Among other investment areas, Bolokhovets mentioned the construction of forest roads, for which UAH 621 million has been allocated. The work will be carried out by the company itself or by Ukrainian contractors using local materials. In addition, the development of forest seed centers will continue, for which the state-owned enterprise has allocated UAH 270 million, 90% of which will be spent on Ukrainian goods and services.
Bolochovets added that next month, the procurement department of the state-owned enterprise “Forests of Ukraine” plans to hold a “Supplier Day.” Businesses will be presented with investment programs and procurement plans for 2026-2027 to obtain feedback on technical specifications and the level of competition.
The CEO of “Forests of Ukraine” recalled that in 2025, 72,000 enterprises took advantage of the “Made in Ukraine” state support programs.
According to the results of 2025, the state-owned enterprise “Forests of Ukraine” received UAH 29.9 billion in revenue, UAH 8.4 billion in pre-tax profit, and 23% profitability, said the general director of the state-owned enterprise, Yuriy Bolokhovets, on Facebook.
He specified that “Forests of Ukraine” paid UAH 15.8 billion in taxes in 2025, which is 44% of its revenue and is the highest percentage in the forestry and woodworking industries.
“For the first time since independence, billions in profits from timber sales have not been diluted by shadow schemes and divided between officials and intermediaries, but have been directed entirely to the budget. This is an indisputable fact. Numbers are stubborn things, and they make it possible to evaluate the work of an enterprise on the basis of objective figures rather than subjective judgments,” Bolokhovets wrote.
The CEO expressed confidence that the growth in indicators is largely due to de-shadowing, as the product sales system is now as open as possible. The state-owned enterprise “Forests of Ukraine” publishes information on each exchange transaction: who contracted what volume of timber and at what price. A list of product refusals is also published.
In 2025, the state-owned enterprise transferred 100% of its procurement of harvesting services to Prozorro. However, due to a shortage of personnel, contractors often do not have time to complete the work. Therefore, additional teams are being formed throughout Ukraine and new vacancies for loggers are being opened.
According to his information, “Forests of Ukraine” plans to increase harvesting volumes in 2026. To this end, the procurement of special equipment has already been launched: harvesters, forwarders, skidders, tractors, trailers, and equipment for transporting timber. Currently, the state-owned enterprise “Forests of Ukraine” is working to double its investment plan for 2026 in order to increase the pace of harvesting.
“We are determined to offer the market the largest volume of forest products since the start of the full-scale war. We expect an additional million cubic meters thanks to the acceleration of the approval of forest management materials. We expect another million cubic meters from the deregulation of licensing procedures. Changes to the regulatory framework are being developed, but unfortunately, the decision has not yet been made,” Bolokhovets said.
In 2026, the state-owned enterprise “Forests of Ukraine” also plans to increase investments in forest protection, conservation, and reforestation, focusing on the care of forest crops to ensure a high-quality timber market in the future. The recreation development program will continue.
Bolochovets added that the state-owned enterprise’s plans for 2026 include restarting the implementation of an automated ERP management system and continuing the corporatization process, which involves revaluation of property, inventory, and preparation of transfer deeds. The registration of property rights to land will be completed. The enterprise will also work on incorporating forest users who are unable to fully perform their functions into its structure.
