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.
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.
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.
According to the results of the auction, the state-owned enterprise “Forests of Ukraine” contracted 99% of the volume of round timber and firewood for the fourth quarter of this year, the press service of the SE reported on Telegram.
“Demand for wood continues to grow. (…) The average price of roundwood rose to UAH 6,800/cubic meter (in the third quarter — UAH 5,700/cubic meter, in the second — UAH 5,400/cubic meter). The average price of firewood for industrial use is UAH 2,300 per cubic meter (in the third quarter — UAH 1,800 per cubic meter, in the second — UAH 1,500 per cubic meter),” the report says.
As noted, the starting prices of the auctions were lower than the sales prices in the third quarter. The state-owned enterprise “Forests of Ukraine” tried to restrain price dynamics, but in conditions of free competition, the final prices are determined exclusively by demand.
To increase supply, Lisy Ukrainy put all available resources up for auction (except for firewood for the population, the social sector, and resources for the Armed Forces of Ukraine). A small percentage of products that buyers rejected were immediately put up for additional auction. Products for which there was no demand or which had a high price were put up for Dutch auction to determine the market price.
According to the state-owned enterprise, 1.5 million cubic meters of wood in the second half of the year was supplied to customers under forward contracts at a fixed price, meaning that processors were able to avoid the risk of rising product costs in advance.
In addition, during July-September, timber harvesting consistently exceeded 1 million cubic meters.
“As for increasing harvesting, this issue requires comprehensive solutions, most of which are currently beyond the competence of foresters,” said Forests of Ukraine, adding that the volume of main use logging over the past three years has remained virtually unchanged, within the range of 5.6-5.7 million cubic meters.
In January-June 2025, the state-owned enterprise “Forests of Ukraine” signed over 800 contracts through the Prozorro system for the harvesting of 5 million cubic meters of timber worth UAH 2.1 billion, the company’s press service reported on Telegram.
“Harvesting services account for the largest share of the company’s purchases. Traditionally, they were purchased under direct contracts. Last year, Forests of Ukraine began creating a transparent, open, and civilized timber harvesting market,” the state-owned company emphasized.
Lisy Ukrainy reminded that a number of entrepreneurs who were not used to working openly and did not accept the mechanism of public tenders resisted the reforms, but the procurement was successfully transferred to Prozorro. The state-owned enterprise demonstrated to businesses the advantages of concluding agreements through transparent, competitive auctions.
“The result is that thousands of workers are officially employed, contractors pay taxes to local budgets. There are more opportunities to monitor compliance with safety and working conditions. The opportunities for manipulation have been minimized—all contracts are published,” emphasized Lesy Ukrainy, adding that the formation of an efficient and competitive timber market is a guarantee that the company will fulfill its obligations to wood processors regarding timely deliveries of timber.
Lesy Ukrainy State Enterprise set another record and sold UAH 8.9 billion worth of unprocessed timber in April-June, according to the company’s CEO Yuriy Bolokhovets on his Facebook page.
“Lesy Ukrainy increased revenues to the state and local budgets by 40%! Tax payments in the first half of the year grew by more than UAH 1.7 billion compared to the same period in 2024,” he emphasized.
Bolochovets noted that the state-owned enterprise uses its after-tax profits to purchase new firefighting equipment (10 large fire trucks are planned in the near future), developing modern seed centers and infrastructure (forest roads, recreational areas, etc.), restoring forestry in de-occupied territories, and mechanizing harvesting (harvesters, forwarders, tractors, etc.).
He highly praised the effect of the six-month forward contracts, under which buyers selected all the timber, which made it possible to achieve 101% of the planned volume.
“Thanks to forward contracts, wood processors can reserve the volume of raw materials they need and fix the price. The company also benefits. The guarantee deposit, which is returned only after 97% of the contract has been fulfilled, motivates buyers to select the entire contracted volume of products. Next year, the share of forward contracts will be increased, with annual contracts planned,” he wrote.
In addition, Lesy Ukrainy has already shipped more than 95% of timber under quarterly contracts for the second quarter. Most of the non-fulfillments are the fault of buyers who either refuse to accept the goods or fail to pay on time.
The state-owned enterprise noted that it pursues a flexible policy on mutual settlements, realizing that producers may experience difficulties with working capital, as they do not immediately receive payment for the timber products they manufacture. However, the enterprise sometimes resorts to suspending deliveries until the buyer settles the debt, which to a certain extent affects the contract fulfillment rate.
“Overall, the situation on the timber market is still balanced. The rapid rise in the euro exchange rate has significantly strengthened the position of Ukrainian exporters, so the forecasts for the second half of the year are more than optimistic,” summarized the CEO of Lesy Ukrainy.
