Business news from Ukraine

Business news from Ukraine

Warehouses of ‘Forests of Ukraine’ have over 220,000 cubic metres of firewood in case of energy crisis

Given the energy situation in Ukraine, the warehouses of the state-owned enterprise ‘Forests of Ukraine’ have accumulated over 220,000 cubic metres of firewood, which is enough to provide for the social sector, the population and the military, the press service of the state-owned enterprise reported on Telegram.

‘The situation in the energy sector is extremely difficult. We have high hopes that Ukrainian cities will withstand it. But we are preparing for any scenario. (…) Procurement continues uninterrupted, and despite the extremely complicated logistics, the warehouses are constantly being replenished,’ the state-owned enterprise emphasised.

According to information from ‘Forests of Ukraine,’ despite prolonged power outages, there has been no significant increase in demand for firewood. Since the beginning of 2026, forestry enterprises across the country have sold only 15,000 cubic metres.

The state-owned enterprise emphasised that it considers fuel supplies to the Armed Forces of Ukraine to be no less of a priority, which are also being fulfilled in full in accordance with the terms of the contracts. If necessary, foresters are ready to increase supplies.

‘Forests of Ukraine’ assured that it would leave prices for social firewood unchanged until the end of the heating season and advised households to start thinking about the next season and replenish their stocks in advance.

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Lesy Ukrainy sold almost all of its timber at auctions for first quarter of 2026

The state-owned enterprise “Forests of Ukraine” has completed auctions for the first quarter of 2026, during which almost all forest products were contracted, prices for hardwood species continued to rise, and prices for coniferous species stabilized, the press service of the state-owned enterprise reported.

“Forests of Ukraine” noted that the auctions were held for the first time under the zero quota for firewood exports introduced by the Cabinet of Ministers. However, in the process of competitive struggle for resources, market participants once again reached higher price levels.

Thus, 381,000 cubic meters were put up for quarterly auctions for the sale of industrial wood (PV), and almost 100% was contracted. Compared to the fourth quarter, the average price of firewood rose from UAH 2,300/cubic meter to UAH 2,600/cubic meter. The main reason was the rise in the price of hardwood from UAH 2,300/cubic meter to UAH 3,000/cubic meter. At the same time, the market value of softwood did not change significantly and amounted to UAH 2,400/cubic meter.

It is noted that the supply of firewood for sale by the State Enterprise “Forests of Ukraine” was distributed almost equally between quarterly and semi-annual (forward) auctions. The forward contracts for the first half of the year took place earlier: 100% of the resource (741 thousand cubic meters) was sold, with an average sale price of UAH 2.4 thousand/cubic meter.

“The tool for hedging price risks by concluding long-term contracts has once again proven its effectiveness. At least in the first quarter, products under semi-annual contracts for firewood will be slightly cheaper,” the state-owned enterprise stated.

Of the 775,000 cubic meters of round timber put up for sale at quarterly auctions, more than 99.5% was sold. The average selling price increased from UAH 6,800/cubic meter in the fourth quarter to UAH 7,300/cubic meter.

At the same time, “Forests of Ukraine” considers it incorrect to talk about a general increase in prices for commercial timber, since birch rose in price from UAH 5,700/cubic meter to UAH 7,600/cubic meter, oak from UAH 22,000/cubic meter to UAH 28,000/cubic meter, and ash from 8,000 UAH/cubic meter to 11,000 UAH/cubic meter. At the same time, alder has become cheaper, falling from 6,700 UAH/cubic meter to 5,900 UAH/cubic meter, and pine from 5,900 UAH/cubic meter to 5,600 UAH/cubic meter.

About 25% of the resource (654 thousand cubic meters) was put up for forward trading in commercial timber for the first half of the year. The average selling price at forward trading was slightly lower than the quarterly price and amounted to UAH 7.2 thousand/cubic meter. At the same time, while oak and ash were indeed contracted at prices lower than those at quarterly auctions, the situation was reversed for coniferous species, the state-owned enterprise noted.

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Lesy Ukrainy State Enterprise earned more than UAH 8 bln in profits and paid UAH 15 bln in taxes in 2025

In 2025, the state-owned enterprise Lesy Ukrainy earned more than UAH 8 billion in profits, paid more than UAH 15 billion in taxes, and invested about UAH 2 billion in its restoration and development, according to the company’s CEO Yuriy Bolokhovets on Facebook.

He also noted that during the war, foresters were able to implement the president’s “Green Country” program and planted 1 billion trees, saved tens of thousands of hectares of self-seeded and undistributed forests, and reduced the area of fires by four times despite constant shelling.

“The company’s performance is not a coincidence or a gift of fate. It is the result of a consistent policy of strong centralized management and control, transparent procurement, and open and competitive sales,” Bolokhovets emphasized.

At the same time, he noted that “the pre-reform fragmented and corrupt system did not achieve even a tenth of the results of the Lesy Ukrainy state enterprise, but remained a source of enrichment for the select few.” That is why, according to the head of the state-owned enterprise, forest reform still faces fierce resistance, as shadow schemes and profits always find supporters. The remnants of the old system are finding new allies, he explained.

“The pressure and persecution that continued this year are not about me personally. These are attempts to stop the changes that, for the first time since independence, have made forests a truly state resource,” emphasized the CEO of Lesy Ukrainy, thanking the team of foresters who have come through this year with dignity, maintained unity, and delivered results.

Among the plans for 2026, Bolokhovets mentioned the digitization of management, new global control systems, mechanization and increased harvesting, and large-scale demining projects.

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State Enterprise “Forests of Ukraine” sold 17,000 Christmas trees and intensifies raids

Since the end of November, State Enterprise “Forests of Ukraine” has sold over 17,000 Christmas trees worth UAH 3.5 million and has begun raids to detect illegal logging, with fines tripled ahead of the New Year holidays, the state enterprise’s press service reported on Telegram.

According to the report, the largest number of Christmas trees were sold in the branches of the Central Forest Office (6,900), the Northern Forest Office (3,700), and the Polissya Forest Office (3,400).

The average price of one Christmas tree sold is UAH 202 including VAT. In total, the state-owned enterprise plans to sell about 140,000 coniferous trees based on the experience of the previous Christmas and New Year season.

“Forests of Ukraine” reminded that branches of the state-owned enterprise organize retail trade at more than 300 trading sites: in forestry enterprises, fairs, and markets in populated areas. Information about the places of sale and contacts of responsible persons is posted on the website of the state-owned enterprise “Forests of Ukraine.”

In addition, Christmas trees can be pre-ordered by calling the nearest forestry office that sells them. After that, you can come, pay (payment can be made through a terminal in the forestry office/forestry department, at a bank branch, or through online banking), and pick up your New Year’s tree.

Prices for New Year’s conifers have remained almost unchanged compared to last year, averaging between 210 and 250 UAH. Spruce/fir trees cost between 240 and 280 UAH. The cheapest Christmas trees are offered by foresters in the wooded areas of the North and Polissya. For example, in Volyn, a 1.5-meter pine tree costs 180 UAH, and in Sumy and Chernihiv regions, 170 UAH. Prices are slightly higher in low-resource regions in the east and south and near large cities.

Some branches of the State Enterprise “Forests of Ukraine” offer Christmas trees in containers. Prices start at 500 UAH, depending on size.
At the same time, to protect coniferous plantations during the Christmas and New Year period, branches of the State Enterprise “Forests of Ukraine” have formed 295 mobile raid groups, comprising almost 1,000 people.

The raid groups conducted 385 joint raids, during which they detected 34 cases of illegal felling of coniferous trees and drew up 28 administrative reports totaling more than UAH 14,000.

The amount of the fine depends on the location of the illegally cut Christmas tree and its diameter at the root collar for trees up to 41 years old: up to 10 cm – 893 UAH (in nature reserves – 7,600 UAH); 10.1-14 cm – 1,500 UAH (13,300 UAH); 14.1-18 cm – over 4,000 UAH (34,700 UAH).

“In December and January, fines are three times higher! In case of significant damage (from 30,200 UAH) from the felling and sale of illegally felled trees, criminal punishment is provided!” – warned the state-owned enterprise.

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State Enterprise “Forests of Ukraine” to become joint-stock company

The Cabinet of Ministers is transferring State Enterprise “Forests of Ukraine” to the status of a joint-stock company, but 100% of the shares will remain in state ownership, Prime Minister Yulia Svyrydenko announced.

“Today, at a government meeting, a number of decisions were made that are important for the stability and development of the forestry industry. State Enterprise ”Forests of Ukraine” is transitioning to the status of a joint-stock company. We are doing this to ensure a more effective corporate governance model with transparent reporting and to increase the competitiveness of the enterprise,” Svyrydenko wrote on Telegram following the results of Friday’s government meeting.

According to her, the transformation of the enterprise into a joint-stock company does not imply privatization—100% of the shares remain in state ownership.

Subsequently, the prime minister’s message was edited, and information about this decision was removed.

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“Forests of Ukraine” saved UAH 700 mln on Prozorro tenders in 2025

In 2025, the state-owned enterprise “Forests of Ukraine” held tenders for the purchase of goods and services worth over UAH 10 billion, as a result of which it was able to save UAH 700 million, the press service of the state-owned enterprise reported on Tuesday.

According to the report, the top three categories of purchases were: logging and related services; fuel; vehicles, equipment, spare parts, and related services.

“97% of the procurement budget is directed through tenders on Prozorro. This is the highest figure not only since the establishment of the enterprise, but also in the entire history of Ukrainian state forestry,” the state-owned enterprise emphasized.

Lisy Ukrainy noted that the most revolutionary changes took place in the procurement of logging services, where traditionally contractors harvest about 80% of the timber, and the remaining 20% is harvested by the enterprise’s own teams. Prior to the reform, state forestry enterprises entered into direct contracts for harvesting without conducting a competitive procedure. Currently, 100% of logging services are procured through Prozorro.

The state-owned enterprise stated that since the beginning of the year, more than 2,000 tenders have been announced, and more than 1,500 procedures have been successfully completed for a total of UAH 2.7 billion.

At the same time, Lisy Ukrainy has centralized and demonopolized fuel purchases and now has several suppliers selected through tenders. The enterprise was able to save up to UAH 12 on each liter of fuel.

The state-owned enterprise added that it was able to achieve high results thanks to well-established communication with businesses, distributors, and manufacturers. This helped to adapt the terms of tenders to market realities and attract the widest possible range of participants to the tenders.

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